Saving for Retirement Now Can Save You Money in April

Two out of three millennials have a long way to go on saving for retirement. But not only is it well within our reach, it can help us way before we hang up our hats. To be more precise, adding to your retirement account before the end of the calendar year will pay off come the next Tax Day.

The very short version is super satisfying: You will get tax relief for contributing to your retirement account. So while it is one more line item for your budget, creating an automatic deduction for a 401(k) or Roth IRA each month will placate Uncle Sam. Any money you put into retirement won't get taxed as income, and you won't have to pay taxes on it until you withdraw from the account.

If you don't have the cash right away but still want to save on taxes and for your golden years, you're in luck. The IRS will actually let you take deductions on IRA contributions for the previous year up until Tax Day itself. That gives you almost four and a half months after Jan. 1 to load up.

If you've left a trail of 401(k) plans from old jobs behind you, it's never a bad idea to see if you can transfer and consolidate them. Some states, like New York, have even created state-run retirement accounts for workers who aren't offered those benefits through their employer. Though you may be dealing with student loans and credit card debt now, you'll be glad later that you started saving for retirement as early as possible.