Sentences with phrase «marginal tax brackets such»

Advisers need to help retirees with a «drawdown strategy,» he said and suggested they urge them to «fill up lower marginal tax brackets such as a Roth plan or a 401 (k) before their brokerage accounts.

Not exact matches

The value of an exemption is a function of the taxpayer's marginal tax rate such that $ 1,000 in exempt income is worth $ 350 to someone in the 35 percent tax bracket (who avoids payment of $ 350 in tax due), but only $ 150 to someone in the 15 percent bracket.

Of course, there are lots of cases where this won't be exactly right, such as if you are on the edge of a marginal tax bracket or when reducing your taxable income will entitle you to special tax breaks (like the child tax credit).

In addition, the amount of the capital gain is taxed in a marginal fashion, such that any portion of the gain that will «fit» into a lower bracket will be taxed at a lower level, with only the topmost portion of any gain being taxed at the top rate.

Deductions impacted by income phaseouts, such as medical expense deductions, miscellaneous itemized deductions, and the AMT exemption (for those subject to the Alternative Minimum Tax), can all cause the marginal tax rate that applies to income to vary from just the tax bracket aloTax), can all cause the marginal tax rate that applies to income to vary from just the tax bracket alotax rate that applies to income to vary from just the tax bracket alotax bracket alone.