Smart Tax Strategies for Tech Workers
As an IT professional, you likely earn a good income. But are you keeping as much as possible? Here are strategies to minimize your tax burden.
Max Out Retirement Contributions
In 2024, you can contribute up to $23,000 to your 401(k). This reduces your taxable income dollar-for-dollar.
Consider a Backdoor Roth
If your income exceeds Roth IRA limits, you can still contribute through the 'backdoor' method.
Tax-Loss Harvesting
If you have investment losses, use them to offset gains and up to $3,000 in ordinary income.
HSA as a Stealth IRA
If you have a high-deductible health plan, maximize your HSA. It offers triple tax benefits—deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.
7702 Plans for Additional Tax-Free Income
Once you've maxed out traditional options, consider a 7702 plan for additional tax-advantaged savings.
Schedule a consultation to create your personalized tax strategy.