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How Lower Taxes Can Help You Save for Retirement

Like the weather, taxes remain uncertain. But now under new tax laws, individual tax rates are largely lower and the standard deduction — which is intended to reduce your taxable income — is nearly double what it was. Additionally, a taxpayer who previously fell into the 15 percent tax bracket is now taxed at a 12 percent rate.

According to nerdwallet.com, investors can and should take advantage of this by reconsidering their Roth IRA, look into Roth conversions and spread their savings among several accounts. A Roth IRA has always been an attractive option for those who think their tax rate is lower now than it will be in retirement, as it essentially allows an investor to lock in that lower rate by paying taxes now, as opposed to at retirement. Under the new tax law, more people are likely to fall into this category.

Click here to learn more about how you can save more now for the future.