Maximize Deductions While Building Your Future
Saving for retirement is already smart—but doing it in a tax-efficient way is even better. Many taxpayers miss out on valuable deductions because they either don’t know they qualify or they haven’t optimized their retirement contributions. If you’re looking to reduce your tax bill and boost your future nest egg, here are 10 tax-deductible opportunities you should consider.
1. Traditional IRA Contributions
Contributions to a Traditional IRA may be tax-deductible depending on your income and whether you or your spouse are covered by a workplace retirement plan.
2. SEP IRA Contributions (for Business Owners or Freelancers)
If you’re self-employed or a small business owner, a SEP IRA allows you to contribute a significant amount—up to 25% of compensation or $69,000 in 2024. These are fully deductible.
3. SIMPLE IRA Contributions
A lower-cost alternative to 401(k) plans for small businesses, employee contributions are tax-deductible, and employer matches are too.
4. 401(k) Contributions
Traditional 401(k) contributions reduce your taxable income directly. In 2025, individuals can contribute up to $23,000, with a $7,500 catch-up contribution for those aged 50+.
5. Solo 401(k) Contributions
Designed for solopreneurs, you can contribute as both employee and employer—maximizing your deduction potential.
6. HSA Contributions (If Paired with High Deductible Plan)
While not a retirement account per se, HSA contributions are triple tax-advantaged and can be used for medical costs in retirement.
7. Military or Church Plan Contributions
Special IRS-approved retirement plans for specific professions allow deductible contributions under different rules—check with a tax advisor if this applies to you.
8. After-Tax Contributions That Lead to Roth Conversions
Some plans allow “backdoor” Roth conversions—contributing after-tax dollars, then converting to Roth for tax-free growth.
9. Catch-Up Contributions for Age 50+
These larger limits on 401(k)s and IRAs provide bigger deductions if you’re behind on retirement savings.
10. Spousal IRA Contributions
Even if your spouse has no earned income, you may still be able to make deductible contributions on their behalf through a spousal IRA.
📞 Maximize Your Deductions with Expert Help
At Pacific Tax & Financial Group, we specialize in uncovering every tax-advantaged strategy available to you. If you want to optimize your retirement contributions and reduce your tax burden, contact us today to create a custom plan tailored to your income, goals, and future.