Tax-deferred retirement plans are a type of?

Hilma Pestano: This Site Might Help You.RE:Tax-deferred retirement plans are a type of?Tax-deferred retirement plans are a type of exemption. itemized deduction. passive income. tax shelter. tax credit....Show more

Jodie Capella: For the best answers, search on this site https://shorturl.im/KKlubIs your question 1) how to have less WITHHELD from your paycheck--because you usually get a big refund at the end of the year? or 2) how to actually pay less tax in total over the year? If you want less withheld, you can change your W-4 with your employer, so less is withheld. If you want to pay less in total, then putting up to $5,000/year into a traditional IRA may defer taxes on that amount. If you are covered by a retirement plan at work, your income has to be less than $53,000 for a single person (or $85,000 for married filing jointly) to take the full deduction. Check your W-2 Box 13 to see if the IRS considers you "coverd by a retirement plan at work". Before you! open up a traditional IRA, you should also consider a ROTH IRA. For most people, the ROTH IRA is better than a traditional IRA in the long run, but contributions to a ROTH are not tax deferred. Putting money into an IRA will not change the amount withheld unless you change your W-4. Other ways to reduce your total tax are by making significant donations to charity, paying mortgage interest, or paying tuition. But these things will just reduce your tax--not increase your pocket money....Show more

Travis Sherrock: Hi my name is Linda & I work for H & R Block. That is fantastic that you are putting 40% of your pay aside. The best way to save on taxes with your paycheck is to put the money in tax deferred accounts such as 401K's (this will save you paying on federal & state taxes but not on social security & medicare taxes). You can save on taxes also by having any medical insurance premiums go thru a tax deferred plan such as a flex plan or a 125A plan (this money will ! come out of your pay before any taxes are calculated. If you w! ant money to go to a brokerage account (this is not tax deferred), talk to your broker about tax free funds which will help to lower your yearly tax liability. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it...Show more

Nannie Kasee: ExemptionYou do not pay tax on your earnings if you invest in a IRA (Individual Retirement Account)Your allowed to invest up to $5,500 this year.You will pay tax on withdrawals in your retirement years. a 401k works the same way....Show more