Sentences with phrase «one's current taxable income»

These are known as salary - reduction contributions because they come from salary before taxes are withheld, thus reducing current taxable income.

This strategy is sometimes dismissed because it increases current taxable income.

An annuity that is funded with pre-tax dollars means that the contribution may qualify as a tax deduction, which could lower current taxable income.

However, a Roth conversion won't affect current taxable income if the conversion is done in an IRA that contains only after - tax contributions.

They generate substantial current taxable income, imputed (phantom) income or capital gains unless they are held in a retirement account or life insurance vehicle that provides tax - free growth.

Contributions to Roth IRA accounts never provide a deduction and thus never reduce current taxable income.

An annuity that is funded with pretax dollars means that the contribution may qualify as a tax deduction, which could lower current taxable income.

The amount you contribute to your 401 (k) also lowers your current taxable income.

For example, the money you put in a 401k is considered «pretax dollars,» which can lower your current taxable income.

Reducing your current taxable income through traditional IRA contributions may also be advantageous for other reasons, such as qualifying for student financial aid.

As I previously mentioned I do everything I can to reduce my current taxable income and gains.

You fund a traditional IRA with pre-tax funds, lowering your current taxable income.

Contributions are deducted from your paycheck on a pre-tax basis, which means whatever you contribute reduces your current taxable income.

Contributions to company sponsored retirement plans, whether a 401 (k) or 403 (b), are tax deferred; this means funds are taken out of your income before taxes whereby reducing your current taxable income.

Instead, they should be able to deduct this amount from their current taxable income

Effective 2002 and thanks to Economic Growth & Tax Relief Reconciliation Act of 2001 (EGTRRA), annual limits on 401k contributions were raised for this exact purpose allowing working investors to contribute more tax - deferred contributions to their retirement plans and lower their current taxable income.»

An HSA offers potential triple tax benefits.2 Your contributions can be made with pretax dollars so you reduce your current taxable income; earnings on the investments in an HSA are not taxed; and withdrawals are tax free if used to pay for HSA - qualified medical and health care expenses.

Contributions to a 401 (k) are made before taxes, so your current taxable income is reduced.

Compared to always non-deductible Roth IRA contributions, for most taxpayers it would be more beneficial to make traditional IRA contributions, when they provide a deduction and reduce current taxable income.

Accordingly, I've opted to stick with PRE-tax deductions to lower my current taxable income.

The amount you contribute to your 401 (k) also lowers your current taxable income.

This allows you to put more of your money to work right away, as well as reducing your current taxable income.

Other before - tax retirement plans, such as 401 (k) s, not only let you defer taxes on investment gains, but also allow you to reduce your current taxable income.

Such pretax plans have the advantage of reducing current taxable income and permitting funds to accumulate tax - free.