From a tax standpoint, is there an advantage to moving 401k
contributions to a 529 contribution to gain a deduction? I don't

Anyone know of a good reference which shows state tax tables like
fairmark?

Second issue- taxable income is in 15% tax bracket (63k).  401ks are
NOT maxed.  Roths ARE maxed.  40k of deductions coming from mortgage
and property taxes, plus some unreimbursed business expenses.  Would
it make sense to not put money in 401k and leave extra investment
dollars in taxable accounts because paying 15% now is better than
paying 25% or more in retirement?  Fine line because if I reduce 401k
contribution percentage for taxable accounts, I risk being put in 25%
bracket.

**aside- 20% of gross pay is set aside for retirement in Roths or
401ks, the question is maybe taxable accounts are better than 401k
provided we stay in 15% bracket**

From a tax standpoint, is there an advantage to moving 401k

Issue- I cannot find Ohio tax tables which look like the ones on
fairmark. First two pages of google search found nothing like these:
http://fairmark.com/refrence/index.htm

Second issue- taxable income is in 15% tax bracket (63k).
401ks are
NOT maxed. Roths ARE maxed. 40k of deductions coming
from mortgage
and property taxes, plus some unreimbursed business
expenses. Would
it make sense to not put money in 401k and leave extra
investment
dollars in taxable accounts because paying 15% now is
better than
paying 25% or more in retirement? Fine line because if I
reduce 401k
contribution percentage for taxable accounts, I risk being
put in 25%
bracket.

"jIM" <noreplysoc...@hotmail.com> wrote

Second issue- taxable income is in 15% tax bracket (63k).
401ks are
NOT maxed.  Roths ARE maxed.  40k of deductions coming
from mortgage
and property taxes, plus some unreimbursed business
expenses.  Would
it make sense to not put money in 401k and leave extra
investment
dollars in taxable accounts because paying 15% now is
better than
paying 25% or more in retirement?  Fine line because if I
reduce 401k
contribution percentage for taxable accounts, I risk being
put in 25%
bracket.

What are the matching terms, if any, on the 401(k)?

My match is 66% of first 6% I think (might be 50% of first
6%). I
contribute 11%.
Wifes match is 100% of first 4% and 50% of next 2% I
think. She
contributes 6%.

From previous chatter here, I doubt you are anywhere near
having problems with AMT.

Both Roths are maxed
Have EF of 12k (3 months expenses)
have additional taxable investments of 1k in PRPFX, looking to
increase this to 12k within 2 years as secondary EF.

age 35/34 ~200k in retirement accounts.

On Aug 31, 6:27 am, jIM <noreplysoc...@hotmail.com> wrote:

Both Roths are maxed
Have EF of 12k (3 months expenses)
have additional taxable investments of 1k in PRPFX, looking to
increase this to 12k within 2 years as secondary EF.

I think that you need more taxable investments to serve as a secondary
EF.

Do you have any home equity? If not, are you considering buying a
home?

age 35/34 ~200k in retirement accounts.

That's good.

From previous chatter here, I doubt you are anywhere near

having problems with AMT.
Not sure what would trigget AMT- there was a thread here at tax time,

Naturally aim for more tax efficient vehicles for the
taxable retirement savings. Yahoo suggests PRPFX has a 37%
or so turnover, so it is not what I would call tax
efficient. Remember the special treatment long term capital
gains and qualified dividends get for 2008 (and 2009, knock
on wood)

PRPFX is the most tax efficient balanced fund I can find- do you have

PRPFX is the most tax efficient balanced fund I can find-
do you have
a better suggestion for funds with a 3-10 year time
horizon (new cars,
house improvements, large vacations). This fund is where
we park
money for intermediate term expenses and use as a backup
EF. I expect
PRPFX to beat cash return each year... and I think it does
that.

On Aug 31, 11:05 am, Ron Peterson <r...@shell.core.com> wrote:

I think that you need more taxable investments to serve as a secondary
EF.

Definitely a 2 year goal is to increase this.  I'd prefer to invest
more aggressively for now and slowly build up the EF.

Second issue- taxable income is in 15% tax bracket (63k). 401ks are
NOT maxed. Roths ARE maxed. 40k of deductions coming from mortgage
and property taxes, plus some unreimbursed business expenses. Would
it make sense to not put money in 401k and leave extra investment
dollars in taxable accounts because paying 15% now is better than
paying 25% or more in retirement? Fine line because if I reduce 401k
contribution percentage for taxable accounts, I risk being put in 25%
bracket.

jIM wrote:
If I said retirement at age 53 is the goal (18 years away) would that
change the comment?

53 opens up a couple issues:
To take withdrawals from one's 401(k) and not pay penalty, you need to
separate from your employer at 55. Otherwise, it's 59-1/2 unless you
elect sec72(t).
This points to having some Roth money or non-retirement account funds to
bridge that gap.

Joe

If I said retirement at age 53 is the goal (18 years away) would that
change the comment?

jIM wrote:
Second issue- taxable income is in 15% tax bracket (63k).  401ks are
NOT maxed.  Roths ARE maxed.  40k of deductions coming from mortgage
and property taxes, plus some unreimbursed business expenses.  Would
it make sense to not put money in 401k and leave extra investment
dollars in taxable accounts because paying 15% now is better than
paying 25% or more in retirement?  Fine line because if I reduce 401k
contribution percentage for taxable accounts, I risk being put in 25%
bracket.

Since you have something like 30 years to retirement, you would have to
be extremely tax efficient to beat the 401(k) with a taxable account.
More efficient than paying today's favorable long-term capital gains tax
rate even just once.  This depends on a lot of factors like the length
of time of investment, projected annual returns, projected tax rates,
and account fees, but the time period I think you're looking at really
favors the tax advantaged accounts.

On Sep 3, 12:14 am, Will Trice <n...@monitored.net> wrote:
jIM wrote:
Second issue- taxable income is in 15% tax bracket (63k). 401ks are
NOT maxed. Roths ARE maxed. 40k of deductions coming from mortgage
and property taxes, plus some unreimbursed business expenses. Would
it make sense to not put money in 401k and leave extra investment
dollars in taxable accounts because paying 15% now is better than
paying 25% or more in retirement? Fine line because if I reduce 401k
contribution percentage for taxable accounts, I risk being put in 25%
bracket.
Since you have something like 30 years to retirement, you would have to
be extremely tax efficient to beat the 401(k) with a taxable account.
More efficient than paying today's favorable long-term capital gains tax
rate even just once. This depends on a lot of factors like the length
of time of investment, projected annual returns, projected tax rates,
and account fees, but the time period I think you're looking at really
favors the tax advantaged accounts.


If I said retirement at age 53 is the goal (18 years away) would that
change the comment?