Health & Fitness
Does Uncle Sam Give Away Free Money?
If you have access to a pension or 401K plan and you're not contributing, you're missing out on some 'free' money, say Janet and Susan of Advantage 3 Tax & Financial Services.
Heck yes, we say! We know it’s hard to save, especially in this economy, but if your company offers a pension or 401K plan and you’re not contributing, you’re missing out on the moola. For most taxpayers, if you put $1,000 in a 401K, you’re actually only contributing $700 out of pocket. That’s because the retirement contribution is tax exempt, so approximately $300 of that $1,000 is the tax savings that goes to your retirement account, not Uncle Sam (assuming a 25% federal and 5% Illinois tax rate).
“About 25% of my clients bring their 401K statements in with them at tax time, and I help them with the allocations,” adds Janet, co-owner of Advantage 3 Tax & Financial Services. “As an experienced financial advisor, I can show them where to find that free money and make it work for them, not against them. And really, who doesn’t like free money?”
Advantage 3 Tax & Financial Services is a full service firm, offering tax preparation for individuals and businesses, investment and financial planning, payroll services and more. Co-owner Susan is a Dave Ramsey Endorsed Local Provider for Taxes. For more information visit www.advantage3.net or keep up with them on Facebook.
