T. Rowe Price Offers Tips On How To Lower 2020 Taxes

Rhea-AI Summary

T. Rowe Price, a leading investment management firm, has provided strategies for investors to reduce their 2020 taxable income. Notable tips include contributing to various IRAs and HSAs, which may be tax-deductible. These deductions are available regardless of whether the standard or itemized deduction is used. The recent extension of the federal tax return deadline to May 17, 2021, may allow for additional contributions and guidance from the IRS. As of February 28, 2021, T. Rowe Price manages $1.50 trillion in assets.

Positive

• Provided actionable tax-saving tips for investors.
• Tax deductions available for IRA and HSA contributions.
• May aid clients in optimizing their financial strategy.

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• None.

BALTIMORE, March 25, 2021 /PRNewswire/ -- T. Rowe Price, a global investment management firm and a leader in retirement, has published tips on how to lower 2020 taxes. Most tax related activity had to be completed by year's end to affect taxable income for 2020; however, there are a few ways investors can still reduce their taxable income for last year.

Some general considerations for investors include:

• Contributions to IRAs, spousal IRAs, SEP-IRAs, and HSAs may be fully or partially deductible for tax year 2020
• These "above the line" deductions are allowed whether you use the standard deduction or itemize your deductions
• Certain households may also benefit from a saver's tax credit

"If you haven't taken full advantage of your 2020 tax deductions, now's the time to act," said Judith Ward, CFP®, senior financial planner at T. Rowe Price. "Determine what type of contributions you're eligible for, along with what works best for your overall financial plan. Saving as much as you can now may provide a tax break today, while also granting you valuable time to allow your investments to grow for the future."

The detailed tips can be found here.

With the recent extension of the 2020 federal tax return due date to May 17, 2021, it is possible that the IRS will provide further guidance to also extend the 2020 IRA contribution and other deadlines. See irs.gov for more details. Please note that each state establishes their own deadline for paying and filing state income taxes.   

ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ-GS: TROW) is an independent global asset management company with $1.50 trillion in assets under management as of February 28, 2021. The firm is focused on delivering investment excellence and retirement services for institutional, intermediary, and individual investors. Our strategic investing approach, driven by independent thinking and guided by rigorous research, helps clients feel confident in pursuing financial goals. For more information, visit troweprice.com, Twitter, YouTube, LinkedIn, Instagram, or Facebook.

View original content:http://www.prnewswire.com/news-releases/t-rowe-price-offers-tips-on-how-to-lower-2020-taxes-301256247.html

SOURCE T. Rowe Price Group, Inc.

FAQ

What tax-saving tips did TROW release for 2020?

TROW provided tips on contributing to IRAs and HSAs for potential tax deductions.

What is the new tax return deadline for 2020 according to TROW?

The federal tax return due date for 2020 is now May 17, 2021.

How much does TROW manage in assets as of February 2021?

T. Rowe Price manages $1.50 trillion in assets as of February 28, 2021.

Can contributions to HSAs reduce taxable income for 2020?

Yes, contributions to HSAs may be fully or partially deductible.

Is there a saver's tax credit available for certain households?

Yes, certain households may benefit from a saver's tax credit.