Can saving for retirement also help lower your taxes? In this Elevate Wealth episode, Deanne Rosso and Ben Hall explain the connection between retirement contributions and taxes—both now and in the future.They walk through the basics of pre-tax versus Roth contributions, how pre-tax savings can reduce taxable income today, and how Roth options can provide tax-free income later. Even small, automatic contributions can have a meaningful impact over time.If you’d like help deciding which retirement savings options make the most sense for your situation, we’re here to help. Visit elevate-wealth.com and click Let’s Talk.#ElevateWealth #RetirementPlanning #TaxSmart #RothIRA #FinancialPlanning #PersonalFinance #SavingForRetirement

How does saving for retirement help with my taxes? We'll explain today on Elevate Wealth. Welcome back. I'm Deanne Rosso with Elevate Wealth Advisory and I'm joined again by our director of tax services, Ben Hall. Welcome, Ben. Thanks for joining me again. We've done a lot of focus on taxes this month. So, Ben, tell me in a straightforward way, what's the most direct link between retirement plan contributions and the taxes people pay this year and later? Sure. So, yeah, good question. When it comes to retirement contributions, we have two basic choices to make. Pre-tax or after tax. So, many workplace plans like 401ks and even IRAS offer pre-tax contributions. And so when you make pre-tax contributions, that money's coming out of your income before you even put it on your tax return. So you're not going to pay taxes on it right now. But it'll sit in the account and grow until retirement. And when you when you distribute that money after you retire, that's when you pay taxes on that money, because it's pre-tax. It's never been taxed before. The other option is called Roth. So you've heard of Roth 401ks, Roth IRAS. This is after tax money. So you pay taxes on the money today or this year. You make deposits into the Roth accounts and it's going to grow tax-free from that point forward. So you can leave it in there for many years and until you retire and then when you start taking distributions from those accounts, no tax is due on that because you've already paid the tax upfront. So it's it's a great retirement tool. But either way, you know, you're building wealth in both scenarios. So they're both good to to plan and probably a good idea to have a little bit of both of them. But pre-tax options, it's good to note that, for example, if you're in a high tax bracket, that's a really good option to try to lower your taxable income for the year. So, if you're trying to save on taxes in the current year, pre-tax options are the way to go. And good point to remember is just even starting with small kind of automatic payments and deposits into these accounts can really add up over time. And and just do your future self a favor while saving a lot on taxes this year. I think I love the advice doing your future self a favor because either way you go, pre-tax now or Roth now, you're doing yourself a favor by saving for your retirement down the road. So, thank you, Ben, for that information. Great tips there. And retirement contributions can be a powerful two-for-one tool...saving for your retirement while also helping you potentially save on taxes now or save on taxes down the road. And if you have questions about the best way to make your own retirement contributions, we're here to help. You can visit us at elevate-wealth.com and click let's talk. Thanks so much for watching. We'll see you next time.