Tax Cut and Retirement Savings

[slow99]

Shoot me a pm with your contact info and we can give you a call and give you a couple suggestions or recommendations. No obligation to make any investment or anything like that with our company. We're a little limited on what advise we give out on a public forum.

Tdominguez@allstate.com
Text 214.244.1043

-Tony

Lmao

[jewozzy]

Because the Trump tax cuts expire in 10 years.

Edit: And your belief about tax rates dropping depends on a whole lot of factors with income level being a big driver.

Keep in mind congress at any time can extend those tax cuts that are set to expire in 10 years. Theres nothing that says "these will end and you will have to come up with something new"

[Stng5Pnt8]

Lmao

What's so funny?

[Ruffdaddy]

Max both. It's only 23.5kper year.

Yeah I didn't realize the Roth was that low.

Good call.

[slow99]

What's so funny?

Sorry, I was still drunk.

[Stng5Pnt8]

Sorry, I was still drunk.

lol...it happens haha.

my broker dealer is super strict though haha

[The King]

I’d be careful taking financial advice around here! If a van down by the river sounds like your cup of tea then go ahead!

One should also be careful taking "expert" sports wagering advice around here!

[Captain Crawfish]

One should also be careful taking "expert" sports wagering advice around here!

True just remember never bet more than you can afford to lose!!!

[stangin4lyfe]

Max both. It's only 23.5kper year.

$24k($18,500/$5,500) this year and yes, I agree with maxing out both.
Anything above this amount, look into a brokerage account.
I personally prefer Vanguard due to the ease and low fees.

[AnthonyS]

Yeah I didn't realize the Roth was that low.

Good call.

Yay it's low but after 5 years you can start use by it without penalties. Married max out the wives too. I'm lucky I was Roth clueless, but we have some really smart financial guys at work. Had a coworker get me to start doing it a few years back.

[Broncojohnny]

You can also contribute about $6,750 or so into a health savings account if you have a high deductible health plan. It is no different than a 401k really, it follows you if you leave your employer. The funds are only supposed to be used for medical expenses but there is very little oversight. Most of them let you invest the balance in mutual funds after you hit a certain dollar amount.

[GhostTX]

You can also contribute about $6,750 or so into a health savings account if you have a high deductible health plan. It is no different than a 401k really, it follows you if you leave your employer. The funds are only supposed to be used for medical expenses but there is very little oversight. Most of them let you invest the balance in mutual funds after you hit a certain dollar amount.

The dollar amount is your deductible. You need enough in the HSA to fully fund a medical emergency up to the deductible amount.

[Broncojohnny]

The dollar amount is your deductible. You need enough in the HSA to fully fund a medical emergency up to the deductible amount.

My company lets us stuff the IRS maximum in there. I just looked it up and it is $6,900 this year. No idea what my deductible is.

[Ruffdaddy]

You can also contribute about $6,750 or so into a health savings account if you have a high deductible health plan. It is no different than a 401k really, it follows you if you leave your employer. The funds are only supposed to be used for medical expenses but there is very little oversight. Most of them let you invest the balance in mutual funds after you hit a certain dollar amount.

Thanks for the reminder. I think my HSA is nearly there but I'll double check.

[stangin4lyfe]

Yay it's low but after 5 years you can start use by it without penalties.

Not quite that simple...

If you’re under age 59½ and your Roth IRA has been open five years or more, your earnings will not be subject to taxes if you meet one of the following conditions:

You use the withdrawal (up to a $10,000 lifetime maximum) to pay for a first-time home purchase.
You use the withdrawal to pay for qualified education expenses.
You're at least age 59½.
You become disabled or pass away.
You use the withdrawal to pay for unreimbursed medical expenses or health insurance if you’re unemployed.

I personally don't see a huge benefit(besides being tax free vs long term capital gains taxes(15%-20%)) in contributing to ROTH accounts due to the limitation of annual contributions. It's rather hard for compounding interest to work in your favor based on such small principal($5,500 yearly) but yes, it is rather nice avoiding the tax man anyway you can.