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Originally Posted by Diolla
This is essentially what is 'confusing' me. I could put the 2360 in a traditional the leftover 1640 in a roth and the tax savings in my deferred comp therefore giving me more to invest. I would not spend the tax savings because I don't need to.
However I don't expect a fall in income at retirement so I am worried about having too much coming from deferred tax accounts. My AGI this year put me in the 15% tax bracket as I have alot of things taken from my check before taxes. I expect I will be in a 20% tax bracket in retirement since I will be single with no dependents and will not have the tax advantage of having health ins & healthcare taken out before taxes like now.
Right now I am leaning towards just putting the whole $4000 in a Roth.
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You could save the refund on the $2460 now, it will cost you "sooner or later". Paying the tax costs you something now, and according to current tax law, NOTHING later.
If you know for sure you'll be in a higher bracket later, use the Roth. You answered your own question. Do you know what refund difference is? I think we're talking about maybe three hundered dollars or so?
15% of 2450 is ~$360. The investment expenses on the $360 do not make this easy to come out ahead deductable.