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Am I out of tax shelters?

Posted on 4/28/16 at 11:23 am
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26917 posts
Posted on 4/28/16 at 11:23 am
I recently received a significant raise, which means it's time to increase my saving/investment rates. However, before I start shoveling money into a taxable account, I just wanted to make sure I wasn't missing anything:

I currently max out my Roth. My employer offers retirement in the form of a set percentage of salary with no option to contribute on my own. I don't currently have any self-employed income. I don't have a high deductible health plan.

Are there any shelters left that I'm missing, or is it time to bite the bullet and start writing the government a check for some of my investment gains?
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 4/28/16 at 11:41 am to
If you do any sort of charitable giving, consider that it's a better idea to give highly appreciated stock than cash. You avoid the capital gains on the stock, plus get the charitable deduction.
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26917 posts
Posted on 4/28/16 at 11:44 am to
I don't currently itemize, but that's something I'll keep in mind going forward.
Posted by TigerDeBaiter
Member since Dec 2010
10248 posts
Posted on 4/28/16 at 11:52 am to
quote:

I recently received a significant raise


quote:

I currently max out my Roth


LINK

Look into these limits, you may make too much to be financially responsible now.
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26917 posts
Posted on 4/28/16 at 12:06 pm to
quote:

LINK

Look into these limits, you may make too much to be financially responsible now.


Unfortunately, I don't have that problem quite yet
This post was edited on 4/28/16 at 12:07 pm
Posted by Teddy Ruxpin
Member since Oct 2006
39545 posts
Posted on 4/28/16 at 12:23 pm to
quote:

I recently received a significant raise,


Good for you!

Sucks you don't have a 401k. My wife and I are filing separately from here on out due to student loans and this year we're maxing out our 401ks to push down AGI. Filing separately or not our income would keep us from taking any of the filing jointly advantages, including ROTHs.

After that, I kind of have to decide if we'll backdoor ROTH contributions as long as that is still available or just build up taxable a bit for some long term things that I'll need the cash for.

I've started coming around to the idea it is kind of lame to have so much money in tax sheltered accounts you can't touch until you are 2/3 dead. But totally understand doing it if you are in the range where that's your only way to retire comfortably.
This post was edited on 4/28/16 at 12:30 pm
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26917 posts
Posted on 4/28/16 at 12:34 pm to
quote:

Sucks you don't have a 401k.


My employer invests 7.5% of my salary straight up, so I have a hard time complaining too much, but yeah, I wish I had the flexibility.

ETA: The equivalent of 7.5% of my salary. They aren't taking 7.5% from me to invest
This post was edited on 4/28/16 at 12:36 pm
Posted by Teddy Ruxpin
Member since Oct 2006
39545 posts
Posted on 4/28/16 at 12:59 pm to
quote:

My employer invests 7.5% of my salary straight up, so I have a hard time complaining too much, but yeah, I wish I had the flexibility.

ETA: The equivalent of 7.5% of my salary. They aren't taking 7.5% from me to invest


Ya, that's nice. I meant from the tax perspective and I just assume you have some loans too.

I think after that you can look at 529s and stuff when you have kids for post-tax sheltering.
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26917 posts
Posted on 4/28/16 at 1:01 pm to
quote:

I meant from the tax perspective and I just assume you have some loans too.


In fricking spades
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7109 posts
Posted on 4/28/16 at 1:18 pm to
Could you set up a solo401k?

Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26917 posts
Posted on 4/28/16 at 1:22 pm to
quote:

Could you set up a solo401k?


From what I recall from researching SEP, Solo401k, etc, contributions are limited to a percentage of self-employed income, of which I have none for the time being.
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