Quote:
Originally Posted by widgeon13
Are you fully funding and IRA and 401K? If you aren't, you should be.
Those two will reduce your AGI and consequently lower your taxes. You keep the money in hand and pay tax on it when you start taking it out.
Better to pay yourself than the Freakin IRS! No brainer in my book.
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^very true. Maxing out 401(k) contributions should be top of the list for any of us wage-slaves. Assuming your employer makes matching contributions, if you do not max out you are leaving money on the table.
If you participate in an employer sponsored 401(k), IRA contributions deduction phases out beginning at AGI=96k and is fully phased at AGI=116k.