Sentences with phrase «are in a higher tax bracket so»

the money I put in the ROTH will go to the Kids who are in a higher tax bracket so I use the converted money as an estate planning tool.

She is in a high tax bracket so it makes sense for her to put into the RRSP, but with 36k worth of room in her TFSA it would be nice to max it out to have money growing tax free and have access to it at any point.

Not exact matches

And now that our careers are going, we're looking at maxing out two traditional 401Ks and two Roth IRAs this year, and we see the Roth IRA portion as a small hedge against rising future tax rates (or what I think is a bit more likely to happen — tax brackets that don't keep pace with inflation, so keep sucking in more and more people to higher brackets).

Municipal bond funds are exempt from paying federal taxes, and in some case even exempt from state taxes... Most investors that invest in mumi funds are in the higher tax bracket, so muni funds are a good choice, to avoid being taxed on the dividends.

So $ 1,000 in deductions would be worth almost $ 400 to someone in the highest tax bracket but only $ 250 for a taxpayer in the 25 percent tax bracket.

One would hardly realize that the problem facing U.S. industrial employment is that wage earners must earn enough to pay for the most expensive housing in the world (the FDIC is trying to limit mortgages to absorb just 32 per cent of the borrower's budget), the most expensive medical care and Social Security in the world (12.4 per cent FICA withholding), high personal debt levels owed to banks and rapacious credit - card companies (about 15 per cent) and a tax shift off property and the higher wealth brackets onto labor income and consumer goods (another 15 per cent or so).

It provided a refreshingly old - school experience, so while the absence of an eco-friendly turbocharged engine might have put it in a high tax bracket, the Clio nearly always won Friday - night battles with newer, flashier press cars to be my wheels for the weekend.

Tax brackets for married people are not double those of singles, so higher brackets kick in sooner when filing jointly.

But if you're in the highest tax bracket that's 39.6 %, so you're saving about 40 cents of that dollar just in taxes and oh, we live in California.

So the lesson here is that the higher your bracket (which is directly related to your annual earnings), the more diligent you should be in including tax - efficient investing strategies into your investment plan.

His investors — the ones in the highest tax bracket — might be «only» netting 40 % or so after tax.

The reason is, Iowa has just one tax bracket regardless of filing status, so two people filing a joint return will be taxed on their combined incomes at a high point in Iowa's highly progressive tax bracket.

The big idea here is that you're likely to be in a higher tax bracket down the road, even in retirement, as compared to your graduate school days — so take advantage of your low tax bracket while you have it.

Suppose you're currently in the highest tax bracket, so a Roth conversion this year would be taxed at 35 %.

So another idea is to forgo the immediate deduction and claim it years later when the money is withdrawn to offset the tax at that time, then you don't have to worry about being in the higher tax bracket (except for the income earned in the meantime).

And for the case of someone with no spare RRSP room and non-registered investments, there's a similar dilemma of whether to realize the gains now in a low bracket, paying tax now so you have less to continue investing, but resetting your cost basis higher for the future.

The tax situation is also difficult to assess since there are so many variables but the general rule is if you expect you are in a higher tax bracket now than you will be at retirement, then you are better off going with the standard 401 (k).

So, a slight benefit to just paying the taxes and contributing the larger amount when you're in the higher tax bracket — which you'll have to weigh against the need to track and report the non-registered investments for taxes.

So, for folks already in the high income tax bracket, the dividends are taxed at a very high rate.

If that's likely, you may want to accelerate income into 2017 so you can pay tax on it in a lower bracket sooner, rather than in a higher bracket later.

I'm in a high tax bracket, so I choose the regular 401 (k) to save money on income taxes.

So, if you're in a higher tax bracket in 2019 than you will be in the future, that final RRSP deduction, albeit at a lower income than your working years, may still make sense.

For starters, the bond component of the Vanguard asset allocation ETFs is likely to be quite tax - inefficient, so it's best not to use these products in non-registered accounts if you're in a relatively high tax bracket.

So, if you think you're going to be in the same or higher tax bracket, putting money into a TFSA might make more sense.

She decides that a partial Roth conversion would be a good idea, to whittle down her IRA so the RMDs that begin in a few years won't drive her into an even higher tax bracket.

(This example is simplified, of course; in reality, the rate you pay depends on your overall income, so you could pay more if you sell a lot in a single year, since it could push you into a higher tax bracket.)

There is a good possibility that I will be in a higher tax bracket at retirement, so I'll pay the taxes now.

Here's the biggest reason why: Your tax bracket is most always higher when you're working and making contributions, so this helps a lot (because the higher your tax bracket when you make deductible contributions, the more you'll get back immediately in tax savings per dollar of contributions).

So even when you're in the accumulation phase, and paying dividend and capital gains taxes at the highest bracket, this is still less money than paying ordinary income rates at your lower (retired) tax bracket.

We are going to be in a higher tax bracket when I retire because of both of our pensions (and SS, rental income)-- so it makes sense to get our money out now and use it to live and pay off rental properties for even more cash flow.

One of the other considerations is that borrowing to invest is great from a tax perspective, but as a young guy, your income probably isn't in the highest bracket, so you won't be able to benefit from this (as much as a 50 year old medical doctor might for example).

Often tax - exempt securities are the most favorable for those in higher tax brackets, so it's important to determine whether buying them would be an advantageous move for you.

For investors in higher tax brackets, capital gains are taxed even more favourably than eligible Canadian dividends, so this may result in actual tax savings rather than just deferral.

Converting the entire account may drive the couple's marginal tax rate into the top 39.6 % bracket, which is so high that they probably would have been better off just leaving the money as a pre-tax IRA and spending it in the future at a lower rate!

So if a dollar in your RRSP is really only about half yours (at the highest marginal tax bracket), then you can think of the money you have as being the amount in your taxable and TFSA accounts, and part of your RRSP, with the government owning the rest of your RRSP.

When I retire, I will keep rolling it over into my TFSA and if I am in a higher tax bracket, so what.

This is to model the worst - case scenario, so detractors can't say, «Yeah that's the way those cookies crumble with low tax rates, but for investors in high tax brackets, waiting as long as possible to claim PIA benefits is better.»

So, if you are going to be in a higher tax bracket in the future than today, capital improvements save you more in future years.