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re: Expiration of “Trump” tax cuts

Posted on 5/3/24 at 2:31 pm to
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
71514 posts
Posted on 5/3/24 at 2:31 pm to
quote:

So given this does it ever make sense to direct 100% of a company 401k into the tax deferred plan vs the Roth if it can drop you into the lower bracket?


Still makes sense. The brackets are adjusted for inflation every year so the standard deduction, the 15% threshold, etc will be higher when you're drawing from the 401k. Your expenses will be lower since your house is paid off. So you'll more likely than not be in a lower tax bracket.
Posted by SquatchDawg
Cohutta Wilderness
Member since Sep 2012
14272 posts
Posted on 5/3/24 at 2:59 pm to
Sorry…to be clear I was talking about a company sponsored tax deferred 401k vs a company sponsored after tax Roth 401k.

Are you saying the tax deferred is better?

I was under the assumption that the Roth was the way to go….so much so that people are actively converting traditional IRAs to Roths.
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