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There is no maybe, no matter what I did with that income in the current year I would be taxed on it. It wouldn't matter if I spent it on hookers or a Roth IRA contribution
Don't forget to account for the fact that your wife might leave you if you went the hookers route.
There is another route here as well. Instead of using the IRA if you have access you can use your 401k
My wife and I max our 401k @ 35,000
Our tax savings @ 28% = 9,800
We also max our roths @ 11,000
Our tax savings pays for all but 1200 of our Roth funding
Your tax savings are temporary; you'll eventually have to pay taxes on the withdrawal which, assuming you'll be at the same tax bracket, will offset the amount in the Roth that you thought funded it.
Your tax savings are temporary; you'll eventually have to pay taxes on the withdrawal which, assuming you'll be at the same tax bracket, will offset the amount in the Roth that you thought funded it.
Do you know what my tax rate will be at retirement?
or your average tax rate over your working career , not just a comparison to the final years when income is highest ?
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