Poll

Should I contribute all retirement contributions as pre or post tax.

Yes - continue in the pre-tax mode, don't pay Uncle Sam any more than you have to.
0 (0%)
Maybe - must have more info.
0 (0%)
Split - put 1/2 in each category - thus pay some tax while you're still working and get some tax benefit now..
1 (100%)
No - put as much away in a ROTH as you can figuring taxes will be higher in 10 years.
0 (0%)
Other logic
0 (0%)

Total Members Voted: 1

Voting closed: March 01, 2018, 02:36:25 PM

Author Topic: Before-Tax or After-Tax Contributions  (Read 641 times)

Life-saver

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Before-Tax or After-Tax Contributions
« on: February 19, 2018, 02:36:25 PM »
The Data:  1 rental with a mortgage, primary residence, no mortgage.  No other debt.  6-figure income.  Very small amount in a ROTH currently (approx. $20K).  I'm maxed out in all 401K, 55 Catch-up, and HSA.
I'm in my mid 50's, 24% tax bracket, mid 6-figure net worth.

Question:  Should I enjoy the pre-tax benefit on all employer provided savings vehicles or pay some tax while I can afford it.

All opinions are welcome and would enjoy to know your logic.

Jim

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Re: Before-Tax or After-Tax Contributions
« Reply #1 on: February 20, 2018, 09:06:24 PM »
I would need to know the balances of how much you have in pre-tax accounts now that are subject to Required Minimum Distributions (RMDs) and when you plan on retiring.  I still voted for a split approach mostly because I think you will be subject to some RMDs eventually and could get hit with a higher tax bill down the stretch unless you plan on getting rid of the rental when you retire.

I like the thought you are putting into it, but fear we would need a little more information.
I've started a blog (not nearly as good as Keith's):
http://jimalism.com/