401(k) plans and IRAs are excellent ways to start saving for retirement, but they can also help reduce your annual taxes, too. The tax accountants at Sharrard McGee & Co PA offer accounting and tax planning services to the High Point and Greensboro area, and they understand how to help their clients take advantage of this tax benefit.

Here, Sharrard McGee & Co PA provides a brief primer on utilizing your retirement accounts to lower your taxes now.

Nontaxable Income

Money you deposit into your 401(k) or IRA may not be taxable. Even better, the government puts a pretty high limit on the amount you can deposit into these accounts. For 2016, the cap is $18,000 for 401(k) accounts and $5,500 for IRAs. By depositing money into these accounts, you can safely and securely avoid paying higher taxes now.

An Accessible Solution

No matter what income bracket you fall under, you can utilize this approach. For lower income earners, this can help save some much-needed money on annual taxes. And anyone who chooses this route has the added benefit of making contributions to their retirement savings, so there are advantages to contributors at all income levels.

Still unclear about how to make your 401(k) or IRA work more efficiently when it comes to your taxes? Let Sharrard McGee & Co PA help. When you work with their tax accountant, you can be confident you are receiving guidance from a qualified industry professional who understands the ins and outs of retirement accounts and tax laws. You—and your finances—are in the best possible hands.

Call Sharrard McGee & Co PA at (336) 884-0410 in High Point or (336) 272-9777 in Greensboro to schedule an appointment for any of their accounting and tax planning services. You can also visit their website to learn more about their tax accountants. Make the most of your 401(k) or IRA, and start lowering your tax bill while saving for retirement.