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| 2018 Income Taxes j-k-lassers-your-income-tax-2018-for-preparing-your-2017-tax-return |
The tax and retirement benefits associated with making pre-tax IRA or 401(k) plan contributions appear to be a big winner in the proposed Trump plan. This is because with this new plan, the standard deduction our annual income tax has tremendously increase. In laymen language, when we are filing our taxes, it also increases the deductions ceiling we can contribute and claim on our taxes for 401 k contributions.
"Trump tax plan causes more households to claim the increased standard deduction and to forego itemizing their tax deductions, since IRA and 401(k) plan pre-tax contributions are above-the-line deductions, the ability to benefit from the pre-tax income deductions associated with making IRA or 401(k) contributions will not be impacted by the Trump tax plan. In fact, making a pre-tax IRA or pre-tax 401(k) plan contribution could become even more beneficial to many income taxpayers under the Trump tax plan" quoted from the Forbes.com article.
As much as we all have a lot to say on this administration, we might as well see the positives that can be beneficial to each taxpayer with the present state we are in.
So if your looking for maximize your 2017 tax deductions, you still have about 4 months to ramp up your 401 k contributions as far as retirement accounts especially if your employer is matching your contributions from 50 to 100%.
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