Sentences with phrase «someone is in a high tax bracket»

An RRSP catch - up loan can make sense if you're in a high tax bracket.

This might work fine if you are in a lower tax bracket today and believe you'll be in a higher tax bracket during retirement.

It's not as good for retirement saving as an RRSP if you're in a high tax bracket, but it's a good catch - all savings vehicle.

«It's important think through whether or not they're going to be in a higher tax bracket in future years, because if they are, then it may not make sense to take the whole benefit in the first year.»

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.

After all this my CPA is telling me that I'm in the highest tax bracket and where I sit currently for 2015 I'll owe approximately $ 185k in taxes!!!

You may benefit from a Roth conversion if you expect to be in a higher tax bracket in retirement, already own taxable and tax - deferred savings accounts, or want to leave a financial legacy to future generations.

Yields are lower but these may be attractive if you are in a high tax bracket.

A municipal bond fund might be one of the best investments if you're in a high tax bracket.

It is unlikely that I will be in a higher tax bracket in retirement.

That can be a huge plus if you expect to be in a higher tax bracket once you retire.

If you expect to be a in a higher tax bracket when you retire, having a Traditional IRA could mean a bigger tax bill.

For those who expect to be in a higher tax bracket after retirement, a Roth IRA may be attractive for that reason.

If you think you'll be in a higher tax bracket when you retire, especially if you're a younger worker and have yet to reach your peak earning years, then a Roth IRA is better than a traditional IRA from a tax standpoint.

As another interesting point — people should remember that a penny saved could be the equivalent of two pennies earned if you are amongst those who are in the highest tax bracket.

However, it's important to note that you will pay income taxes on 401k withdrawals when you reach retirement age, at which point you could be in a higher tax bracket.

You could be in a higher tax bracket in retirement, or taxes could be even higher in general.

But low postdoc salaries mean you will (hopefully) be in a higher tax bracket when you retire than you are now.

If you're in a higher tax bracket it might be worth buying individual municipal bonds.

For your taxable account, you might also favor tax - free municipal bonds, especially if you are a conservative investor and you're in a high tax bracket.

Going back to the earlier charts again, le» ts see how our dividends would be taxed if we were in the highest tax bracket, which occurs whenever you earn more than $ 220,000 of annual taxable income.

However, don't carry out this strategy if you expect to be in a higher tax bracket in the next year.

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.

This means that if you earn $ 1,000 in capital gains, and you are in the highest tax bracket in, say, Ontario (53.53 %), you will pay $ 267.60 in Canadian capital gains tax on the $ 1,000 in gains.

«Capital gains can be as high as 20 % if you're in the highest tax bracket, and your overall liability can be higher when you consider additional taxes for high earners,» says Klein.

If you're in a higher tax bracket when you put the money in than when you take it out, then it's better to use an RRSP.

If you're in a higher tax bracket — that is, if you make $ 85,000 annually or more — it may be worth paying for a few hours of an accountant's time to see what mix of these investment options is right for you tax-wise.

She could put it into a TFSA, then reinvest that money back into her RRSP for a bigger refund when she returns to work and is in a higher tax bracket.

As it turns out, the RRSP is ideal if you're in a high tax bracket now and expect to end up with a solid middle - class retirement.

If you're going to be in the highest tax bracket then it's a good idea to pay back the funds to your RRSP to avoid a $ 766 tax bill.

Even if you're in the highest tax bracket, you'd save a mere $ 35 in tax by sheltering this in a TFSA.

If you expect to be in a higher tax bracket when you redeem the bonds, it might benefit you to report the interest annually.

It's obviously a lot more compelling to take a loss like this when you're in a higher tax bracket, as the tax savings become significantly higher.

Even if you're in a high tax bracket, it's important not to just focus on taxes when you're selecting funds.

If you are in a low marginal tax rate, consider using a TFSA rather than an RRSP if you believe you will ultimately be in a higher tax bracket.

In fact, if you are in the highest tax bracket paying 30 % of your income as tax and willing to add a dash of risk, this could be your preferred investment option.

Although tax - exempt bonds might have a lower interest rate than taxable bonds, if you're in a high tax bracket, your after - tax rate of return might be higher.

It also made more sense to reduce our taxable income with our retirement contributions because we were in a high tax bracket.

When you're in a higher tax bracket, you pay more tax, but you also save more when you make a deduction.

The lesson here is that if you're in a higher tax bracket when you withdraw your savings than when you contributed, RRSPs are the wrong vehicle.

Transferring those investments into an RRSP will generate a tax refund, but you're better to wait until you're in a higher tax bracket to take advantage of it.

I do not expect that I will be in a higher tax bracket when I retire, but I want to hedge my bet!

On the other hand, if you're in line for a promotion and expect to be in a higher tax bracket next year, it would make more sense to realize the entire gain now, which would allow you to report it in a year when you'll pay less tax.

Paying taxes now, as you do with a Roth IRA, protects you if you expect to be in a higher tax bracket when you retire.

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.

The Roth 401k might be a better way to maximize your 401k contributions if you anticipate being in a higher tax bracket at retirement.

If you expect to be a in a higher tax bracket when you retire, having a Traditional IRA could mean a bigger tax bill.

Can you believe that contrary to what conventional wisdom tells us, many retirees are in a higher tax bracket compared to when they were working?

If you are in a high tax bracket, you may want to reduce your taxable interest income to keep more of what you earn.