Lower the taxes

[swatz]

Hello everyone 

 

taxes lower cheyadaniki Emana options vunnaya?

 

 

so far Naki telusi

day care

529 plan $2k per kid max 

traditional IRA -12500 per husband and wife 

green card vunta - setup up a business and show $10k losses max 

 

Inka Emana telisthe veyandi, teliyakapothe LTT please 

[Democraticcompulsion]

Have a bunch of kids.

 

[Anta Assamey]

[Sizzler]

8 minutes ago, swatz said:

Hello everyone 

 

taxes lower cheyadaniki Emana options vunnaya?

 

 

so far Naki telusi

day care

529 plan $2k per kid max 

traditional IRA -12500 per husband and wife 

green card vunta - setup up a business and show $10k losses max 

 

Inka Emana telisthe veyandi, teliyakapothe LTT please 

You can max out 401k and also HSA.
 

Good thing with HSA is you can still contribute towards last year. Like deposit from your bank account towards 2022 HSA if you haven’t maxed out. 

[bayarea]

9 minutes ago, swatz said:

Hello everyone 

 

taxes lower cheyadaniki Emana options vunnaya?

 

 

so far Naki telusi

day care

529 plan $2k per kid max 

traditional IRA -12500 per husband and wife 

green card vunta - setup up a business and show $10k losses max 

 

Inka Emana telisthe veyandi, teliyakapothe LTT please 

529 contributions are non deductible in most states and definitely not for federal afaik.

Traditional IRA kuda can be deducted only if married filed jointly aithe income should be less than 220K anukunta

General deduction strategies:

* Fund 401K to max. You’d pay taxes at retirement when you withdraw but your income tax will be much lower than now

* HSA contributions which can be used for medical expenses tax free

[meandhrakurradu]

5 minutes ago, bayarea said:

529 contributions are non deductible in most states and definitely not for federal afaik.

Traditional IRA kuda can be deducted only if married filed jointly aithe income should be less than 220K anukunta

General deduction strategies:

* Fund 401K to max. You’d pay taxes at retirement when you withdraw but your income tax will be much lower than now

* HSA contributions which can be used for medical expenses tax free

Retirement appudu mana income mostly inthe untadi kada? If you are maxing out 401k itself your target will be min 2 million. 
roth ira might be better imo 

[bayarea]

14 minutes ago, meandhrakurradu said:

Retirement appudu mana income mostly inthe untadi kada? If you are maxing out 401k itself your target will be min 2 million. 
roth ira might be better imo 

Day to day job undadu kada man after retirement? Ante nuvu CEO ga aye multiple companies board member ga leka franchise lekka business tycoon aithe yeah your income will be lot higher than now. But general ga retirement time ki income either zero or low untundi anukuntuney 401K works out. Mannam edo ayipotam anukunte its better to pay taxes on that 401K money now and cash out than pay higher taxes at retirement time.

Also you plan 401K withdrawals after retirement so that you pay close to zero taxes. Planning is important 

Not everyone is eligible for Roth IRA

[meandhrakurradu]

2 hours ago, bayarea said:

Day to day job undadu kada man after retirement? Ante nuvu CEO ga aye multiple companies board member ga leka franchise lekka business tycoon aithe yeah your income will be lot higher than now. But general ga retirement time ki income either zero or low untundi anukuntuney 401K works out. Mannam edo ayipotam anukunte its better to pay taxes on that 401K money now and cash out than pay higher taxes at retirement time.

Also you plan 401K withdrawals after retirement so that you pay close to zero taxes. Planning is important 

Not everyone is eligible for Roth IRA

401k vs roth is always debatable, generally speaking 65 ki retire aite you will withdraw atleast 100k anyway to maintain the lifestyle. Ekku withdraw cheyyakapote pointless to save that much 

[bayarea]

37 minutes ago, meandhrakurradu said:

401k vs roth is always debatable, generally speaking 65 ki retire aite you will withdraw atleast 100k anyway to maintain the lifestyle. Ekku withdraw cheyyakapote pointless to save that much 

100K now could be 60K or less in 30yrs due to inflation etc so that should be factored in as well.

[Mr Mirchi]

4 hours ago, bayarea said:

529 contributions are non deductible in most states and definitely not for federal afaik.

Traditional IRA kuda can be deducted only if married filed jointly aithe income should be less than 220K anukunta

General deduction strategies:

* Fund 401K to max. You’d pay taxes at retirement when you withdraw but your income tax will be much lower than now

* HSA contributions which can be used for medical expenses tax free

not medical expenses..just co-pays

[rmJU72]

I follow this order…only 1-3 are for lowering taxes and I think everyone should do it. 4-7 are with post tax money.

1. 401k pretax - max 20k+ per year per earner

2. HSA max 6k+ per family - pretax

3. if young kids with daycare costs - Dependent care FSA max, I forgot how much max, been sometime for me. I think pretax.

4. If salary bracket allows for Roth IRA, max out IRA - post tax only allowed

5. max out 529 plan - 15k per kid per parent allowed, I think even if second parent not working. pl double check the later time part. post tax only.

6. Max out after tax 401k and backdoor convert to Roth up to 40k per earner - post tax only allowed

7. investments into brokerage account. - post tax only

[bayarea]

28 minutes ago, Mr Mirchi said:

not medical expenses..just co-pays

Sure aa? This is what Government says: https://www.healthcare.gov/glossary/health-savings-account-hsa/

While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have a High Deductible Health Plan (HDHP) 

[playboys]

Okay