Overall taxes will increase for more than 75% of households in 2013, says the Tax Policy Center, so the need to maximize your tax deferred and tax sheltered retirement assets are more important than ever. If you have a 401(k) employer match at your company, maximize your contributions there first and then maximize your Individual Retirement Account (IRA). These investment vehicles allow you to grow your retirement assets tax free until it is time to take a distribution at retirement. The fiscal-cliff deal increases taxes on household incomes of over $450K to 39.6%, as well as an increase on long-term capital gains taxes and dividends to 20%, and inheritances go up but the $5 million individual level remains the same. The payroll tax cut is allowed to lapse, so the employee portion of the Social Security tax will return to 6.2% from 4.2%.





The need to maximize your tax free gains is very important in 2013.

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