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

You'll likely be in a lower tax bracket when you are retired.

So if you do it right you won't have to pay much in the way of taxes on your investments even if they are in taxable accounts until retirement when at the very least you will have a lot more flexibility in managing your money and very likely be in a lower tax bracket.

Not exact matches

And since they are likely in a lower bracket than you, this creates a permanent tax savings for you.

It's a legal way to defer more taxes — perhaps all the way until retirement, when Drew is likely to be in a lower tax bracket.

«These changes will likely lower your tax burden in 2018 — though there's a catch: The new tax brackets are set to expire, and revert to 2017's rates, in 2025.»

These individuals are likely to stick with the old rules — generally speaking, it would only make sense to change to the new tax treatment if the ex-spouse paying the support is in a lower tax bracket than the recipient.

Contributing with pretax dollars (traditional IRA, 401 (k)-RRB- allows you to reduce your taxable income by deferring income taxes until retirement, at which point you're more likely to be in a lower 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.

I will likely be in a lower income tax bracket with the distributions after retirement (I'm 39), so do you recommend I avoid the Roth option?

The reason is that you put this money into the Roth account likely at a lower tax bracket than when you take it out in retirement.

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.

Yes, you will eventually be taxed in retirement when you withdraw from your 401k, but by then you will not earn a steady income anymore, so it is likely your tax bracket will be lower than it is now.

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

The contributor receives the short term benefit of the tax deduction for the contributions, while the annuitant, who is likely to be in a lower tax bracket during retirement, receives the income and reports it on his or her income tax and benefits return.

The benefit of an RRSP is that you deduct contributions today and defer taxes until your retirement, when you will likely be earning less money and may be in a lower tax bracket.

The advantage comes from the tax sheltered growth and it is likely people will be in a lower tax bracket in retirement when they withdraw the money than when they earned it.

Nonetheless, we can know what the marginal tax rate will be for this year, and in practice there are many situations where that tax bracket is low enough that we can be virtually certain it is favorable compared to almost any likely future.

Adding compounding over time and the withholding tax issue for US equities should further help make sheltering equities first the more optimal strategy when you expect low bond returns, and increase the potential benefit (which I still have yet to estimate well), but being in a lower tax bracket will likely reduce it.

That will likely be years later in retirement, when most Canadians enter a lower tax bracket.

If you wait to withdraw your money from this account until after you reach qualified retirement age (currently between 65 - 67) and you'll likely be in a lower income tax bracket and, therefore, pay fewer taxes on this money.

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.