Financial experts frequently advise younger workers to open IRA accounts or to take advantage of employer-provided retirement programs as soon as possible so they can get a head start on their savings. For those who do follow such advice, there can be benefits at tax filing
time as well as a more comfortable retirement.
For younger workers, one of the most important considerations will be whether to open a Roth IRA, which allows tax-free distributions upon retirement, or the traditional IRA, which allows contributions to be deducted at filing season and then taxed at distribution.
In a column for Money Magazine, Walter Updegrave recently strongly advised a 30-year old worker to get started on their company''s retirement plan, especially since it is common for older workers to regret not having devoted more resources to their long-term savings needs.
"And make no mistake: the longer you put off saving, the harder it is to accumulate enough dough for you to maintain the standard of living you enjoyed during your career in retirement," said Updegrave.
With these things in mind, even the youngest workers may find it in their best interests to talk to their tax preparer
about the full range of retirement options, as well as the potential tax benefits, that may be available to them.
Liberty Tax Service provides computerized income tax preparation and electronic filing. Each tax office offers customers audit assistance, a money back guarantee, and free tax return checking.