January 12, 2011
If you havent maxed out on your 401(k) contributions, its not too late to boost your contributions in the last few weeks of the year, Rempe says.
Not only is this good for your future retirement, but contributions reduce the amount of income subject to tax. (Your 401(k) money, though, will be taxed when you withdraw it in retirement.)
Depending on your income or whether you have a retirement plan at work, you may be able to deduct contributions to a traditional IRA. You have until the tax deadline April 17 next year to make an IRA contribution for 2011. (The deadline is extended by two days because the usual deadline falls on a weekend followed by a holiday.)