jdbst56@[EMAIL PROTECTED]
wrote:
> Sorry, I've posted here before, but I don't post on a regular basis so
> I'll provide a refresher. The Roth is just to supplement me and my
> wife's company 401ks, which we both contribute up to the company
> match. The funds in our 401ks are relatively well diversified. I'm
> 27 years old so don't need immediate access to the investments. My
> wife and I earn about 100k combined, no kids but probably some day,
> and in addition to the 401ks and Roth, we have combined savings of 40k
> in a money market savings account.
My thought is this - the 25% bracket begins at $65,100 this year. STD
deduction = $10,900, two exemptions total $7,000. This totals $83,000
(gross). I just suggest that if you are only funding the 401(k) to the
matching level, you might benefit by doing the deductible IRAs until you
are right at the $65,100 net taxable income level. A couple kids, a
bigger house, you may drop down to the 15% bracket, in which case I'd
say to fund Roths in that year. And even convert some regular IRA money
to bring your income up to the top of the 15% bracket again. Just my
opinion, as no one can know the tax structure between now and (your)
retirement.
Joe
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