Wednesday, November 07, 2012

Election/Tax Advice

Now that it looks like this "healthcare for all" thing is going to go through, does anyone know if I increase my 403(b) contributions if my tax exposure to this legislature would be decreased?  Most tax rates are based on your adjusted gross income, and 403(b) contributions lower your recognized income on your W-2.  In theory this should work out like my own personal tax shelter, except I'm not really hiding my money from the goverment, just deferring my taxes until either the legislature is fixed or I turn 59 1/2.

Another thing, barring mad inflation, at age 59 1/2, there's no reason I couldn't make taxable withdrawls from this account to the tune of $25,000 and live very comfortably.  Just something for me to think about "going forward."

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