With tax season finally here, we know our clients will come up with lots of questions for us. We can tell them how to make a backdoor Roth IRA contribution, but most of the time we’re going to tell you to ask your CPA or tax planner! In this episode, we’re going to try to beat you to it and ask our favorite CPA for you. That’s where Ryan Kramer comes in. Watch below, or scroll down for the audio-only version. Also available wherever you get your podcasts.
When should you start planning for taxes? Right now. Waiting until close to the tax filing deadline to start to come up with tax deductions is not going to work. Remember to keep in mind taxes that you will have to pay in retirement as well instead of just focusing on tax deductions now.
Retirement savings and taxes. Some retirement plan contributions can reduce your taxable income and others can leave you with tax free income in retirement. Which is more appropriate for you depends on what tax bracket you are in, and what your income may look like in the future (including retirement!).
Should independent contractors form business entities? It depends! This is a very complicated question with very complicated answers. If you work locum tenens or as an independent contractor in some other capacity, touch base with a CPA and a financial advisor to find out what’s best for you.
When should you get in work with a CPA or other tax professional? If you’re afraid you’re going to mess something up or just miss something, get some help.
Tip of the Day: You can make Roth IRA and Traditional IRA contributions for the tax year up until the tax filing deadline (usually April 15th), but if you are using the “backdoor” Roth strategy your tax filing will be much easier if you do it all within the calendar year.
Thank you for joining us, Ryan! If you’d like to get in touch with Ryan Kramer, please feel free to reach out to us anytime.
For other videos, check out the Finity Group’s YouTube channel. And for more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden or Twitter: @CoreyJanoffCFP and @RachelleFinance
Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC. Finity Group and Cambridge are not affiliated.