There is no question that saving money on taxes is a big deal. One great way to save on taxes has always been to get money into an IRA. Unfortunately, this no longer works for some folks...
Siesta Key, FL (PRWEB) October 09, 2013
In a new article recently published by LegaLees’ attorney, Lee Phillips, titled Adjusted Gross Income Now Effects IRA Deductions, Lee explains the IRA deduction phase out table and discusses how the phase out limits affect many Americans and their ability to contribute to a traditional IRA.
Every year many Americans donate to their IRA accounts. Not only is it a great way to fund retirement accounts, but traditionally it has saved on taxes. That was true until 2011, when the Obama administration took away many people's ability to make a traditional IRA contribution and have it reduce their adjusted gross income. For many, their IRA contribution is not tax deductible under the current laws.
Contributions to a traditional IRA now “phase out” for higher income individuals. Many taxpayers do not even know the phase out exists. They simply tell their accountant that they have made an IRA contribution and never realize they don’t get a deduction for making the contribution. They are effectively making an after tax contribution to a traditional IRA, where it will be taxed again when they take a distribution out of the IRA.
As Attorney Phillips observes, “There is no question that saving money on taxes is a big deal. One great way to lower an individual’s adjusted gross income and save on taxes has always been to make a contribution to a standard or “traditional” IRA. Unfortunately this no longer works for some folks, and people need to be aware of the limits on their deductions to a traditional IRA.”
Attorney Phillips says, “Now it is more important than ever that people learn how to control their adjusted gross income. People know they want to lower taxes. They try many things to save taxes here or there, but a good knowledge of the adjusted gross income calculation is the best way to lower taxes. In a way, there are two sets of tax laws. Rich people use one set, and the rest of the population uses the other set. Both sets are perfectly legal.”
Mr. Phillips serves as a counselor to the Supreme Court of the United States. He is the author of 11 books, along with his latest publication Advanced Tax Tactics. He has written hundreds of articles for professional people assisting them in finding various strategies to use the law to protect their property, save taxes and make additional money. He has given addresses at thousands of business seminars. He enjoys helping people apply the law, not only to provide asset protection and estate planning, but also to use it to structure businesses and save taxes, helping individuals find success.
LegaLees was founded in 1982 by Lee R. Phillips. It is a legal self-help publishing company. It produces products designed to help people understand the law. Based on his own personal experiences, Mr. Phillips realized that people needed to be able to understand how the law works so they can direct their own legal professionals. He also saw that people who want to do their own legal work need to be shown how, not just handed a fill-in-the blank form. LegaLees has designed many products to help individuals structure their personal and business affairs. All of the products help the clients protect assets and prevent legal disasters that can strike anytime.