Sentences with phrase «likely be in a higher tax bracket»

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).

An upwardly mobile person making $ 100K today at a young age (in the 25 % bracket) will most likely be a higher tax bracket when they retire assuming they max out their retirement savings vehicles.

«Deferring that income could be advantageous because you are most likely in a higher tax bracket while working than when you retire,» said Labant.

The reality is that the dividend income will be quite large as they near retirement and should likely put them in a higher tax bracket.

For people in the higher tax brackets, capital gains rates are likely to be higher in the near future.

While the Traditional IRA would likely be more optimal for us since we are in a higher tax bracket today than we likely will be in retirement, we are locked out of this option since our taxable income is above the max allowed.

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.

In both instances, people likely to be in high tax brackets after retirement may prefer to hold a high proportion of municipal bonds, which are generally exempt from federal tax and sometimes from state and local taxes as welIn both instances, people likely to be in high tax brackets after retirement may prefer to hold a high proportion of municipal bonds, which are generally exempt from federal tax and sometimes from state and local taxes as welin high tax brackets after retirement may prefer to hold a high proportion of municipal bonds, which are generally exempt from federal tax and sometimes from state and local taxes as well.

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.

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.

Therefore, higher - income investors (with theoretically higher tax bills) are likely to benefit more from municipal bond yields than individuals in lower tax brackets.

While most taxpayers will benefit from reduced tax rates and expanded tax brackets, changes in the law also mean it's less likely that you will itemize your deductions, instead opting to claim the higher standard deduction.

Your short time frame and the fact that you are likely to be in a higher tax bracket negate the advantages of a RRSP.

In addition, because tax brackets are usually adjusted upward in an attempt to keep up with inflation, these numbers will likely be significantly higher if you're retiring in the distant futurIn addition, because tax brackets are usually adjusted upward in an attempt to keep up with inflation, these numbers will likely be significantly higher if you're retiring in the distant futurin an attempt to keep up with inflation, these numbers will likely be significantly higher if you're retiring in the distant futurin the distant future.

Since you don't pay federal or state income taxes on Roth withdrawals, the higher your tax bracket in retirement, the more advantageous a Roth is likely to be.

See this post for why that's rarely actually good advice — if you've filled your TFSA room, you will likely prefer to either use your RRSP and take the deduction right away, or invest in a non-registered account until you're actually in that higher tax bracket.

You don't mention what your annual pension income is but any withdrawals from an RRSP are added to other income and this could increase your tax owing in that year by moving you into the next (and likely higher) tax bracket.

Elimination of the deduction will lead to higher revenues overall for the government because the person who deduced the alimony was likely in a higher tax bracket than the spouse declaring the alimony as income.

Therefore, you'd rather your contributions be taxed now, in a lower tax bracket, and not have to worry about it when you're older and likely paying higher taxes.

This means you don't pay income tax on this money now, while you're likely in a higher income bracket.