re: Income Tax in Retirement Questions

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Yes I'm only in my 30s, but I have an Llc I have a Sep-Ira in, we both have a Roth, and my wife and I both have 401k options at work though they are unmatched. There's not very many people that can max both 401ks and Roth financially. So while tax advantages now are important, I don't think it's off base to additionally plan your taxes when you retire. Obviously in 25-35 years the tax codes could change drastically, but I'm not going to
Not plan.

My questioning is because at the beginning of every year I'm usually holding $4-5 k that i saved and I'm looking to invest. In years past it has been all into my Roth's, but maybe I should look to put more into my SEP. Maybe I'm just over thinking it.

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The general rule is contribute to 401k until they get full matched, then max roth, then max your 401k. that probably changes since you don't get matched. I personally like the benefit of reduced income taxes, its a benefit I get now vs. later. And my tax rates are higher now than they will be when I retire.

I think the trick is that you don't know what taxes are going to do in the future. I personally think spreading it around to both pre tax and post tax accounts is the best strategy.

We know its going to change, but to what? 25 years ago the Roth didn't exist, and 401ks weren't that popular. Traditional IRA is what people went with.