Contributions to a retirement account tend to be the easiest way to save for yourself and reduce your current tax bill. If you have to opportunity to save pre-tax, please do. You can save 100% whole dollars vs. a reduced, after-tax dollar to accounts such as an IRA or Roth IRA. If you do not have access to a 401k, 403b, or 457 plan, don’t hesitate to save into an after tax retirement account. Here are the new contribution limits for 2012:

401k 403b or 457 $17,000 a $500 increase
50+ catch-up $ 5,500 no change in catch-up

Happy saving!