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Married couples can save $2,250 annually if one spouse works—up to $4,(XX) if both work. And that’s another $2,000 the tax man won’t see now.
Not only is this money sheltered from current taxes, but the interest or dividend it earns is, too. Of course, you will pay taxes when funds are withdrawn, but you will probably be in a lower tax bracket.
The results can be astounding.
Your $2,000 can grow
to more than $1,500,000. Suppose you are 25 and put $2,000 a year into an IRA until age 65, and it pays 12% interest. You’d end up with considerably more than $1,500,000' i to ordinary income tax when received
86.6%