Although 2020 is now in the rearview mirror, you can still help lower your tax bill before you file by April 15th, 2021. The IRS allows qualifying individuals to contribute to a Traditional Individual Retirement Account(IRA) for the previous year all the way up until April 15th. But why wait until April? If you have some cash laying around, maybe from a recent stimulus check, now would be a great time to save for retirement and lower your taxes for last year.
Who can contribute-
- Individuals who have earned income(think W2 income).
How much can you contribute-
- $6,000
- Additional $1,000 catch-up if you’re over the age of 50