"For higher-earning employees, using the traditional 401(k) will give an immediate tax benefit of lowering taxable income, while others will benefit from paying taxes today at lower rates and allowing the investments to grow tax-free," said
Even if you use tax preparation software, be vigilant, says Rob Burnette, an investment advisor and tax preparer at Outlook Financial Center in Troy, Ohio.
"If you don't make a payment on those taxes within 30 days, you're going to get a letter from the IRS. It says, 'Hi, you owe X number of dollars. You haven't paid them yet.' But it will come in a letter. I want to emphasize the IRS...
The general rule of thumb is to save "10% to 15% of your gross salary per month," said Rob Burnette, CEO and investment advisor representative at Outlook Financial Center.
“As Social Security looks at your top 35 earnings years to calculate your monthly benefit, your peak earning years have the biggest impact on your PIA,” explained Lori Gross, a financial and investment advisor at Outlook Financial Center.
