5 Overlooked Tax Deductions for Retirees That Could Save Them Money

This article takes a look at the 5 overlooked tax deductions for retirees that could save them money. If you wish to check out our detailed analysis, you may go to 13 Overlooked Tax Deductions for Retirees That Could Save Them Money.

5. Retirement Plan Contributions

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The most important deductible contribution seniors over 50 can avail is on their IRAs or 401(k)s. The 50s is usually the age when seniors have their kids moving out and becoming independent, and careers pay the most as they are their highest earning years. In such a scenario, maximizing retirement plans is the best way to move forward. As of 2024, the contribution limit for those who participate in 401(k) and 403(b), and similar retirement plans is $23,000. Moreover, people over 50 can contribute an additional $7,500 to their accounts. These contributions are generally deductible from your taxable income.