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

I'm pretty much at the point where I've completely stopped contributing since I do have some worries about being in a higher tax bracket when I retire.

That can be advantageous, especially if the account owner is in a higher tax bracket in retirement or taxes are higher in the future.

For these accounts, the gamble is this: do you think you're going to be in a higher tax bracket now or later.

This kind of account is better for people who think they will be in a higher tax bracket at retirement than they are currently.

I am an investor who is in a higher tax bracket.

Or if you expect to be in a higher tax bracket later in retirement, you may want to convert enough to fill up the 10 % or 15 % tax brackets.

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.

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

This generally works out best overall, assuming that your parents are in a higher tax bracket (have a higher income) than you.

I always felt how could I possibly be in a higher tax bracket in retirement and if I end up there it's probably a good problem to have.

For instance, someone who makes $ 45,000 as a single person is in a higher tax bracket than a married couple whose combined income is $ 45,000.

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.

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?

But if you are still working and take money out of your RRSP, you may still be in a high tax bracket, so you pay a lot of tax on the withdrawal.

Say, if I'm putting money in some index funds for 5 years, and in 5 years I'll probably be in a higher tax bracket than now.

And what's worse, if they actually are as successful as they hope to be with your money, you might be in a higher tax bracket with fewer write - offs.

If someone is in a high tax bracket and can afford to do both, even better!

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

The carry - forward feature may be especially useful for those who expect to be in a higher tax bracket in future years.

There is a good possibility that I will be in a higher tax bracket at retirement, so I'll pay the taxes now.

That may be problematic for an investor who's in higher a tax bracket.

But it may cause you to be in a higher tax bracket during your last few working years.

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

the money I put in the ROTH will go to the Kids who are in a higher tax bracket so I use the converted money as an estate planning tool.

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

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.

Because many people expect to be in a higher tax bracket down the road (since they hope to be earning more later in their career), it makes for a tax - efficient savings strategy since you pay less in taxes now.

«If you are young worker just starting out and / or expect to be in a higher tax bracket consider a Roth IRA / 401 (k).

But if you are in a low tax bracket now and anticipate being in a higher tax bracket in a few years, then it may be a better idea to capitalize the asset and get bigger tax savings over the next few years.

Put money in a Roth IRA (my wife's 401k has really high fees and we will definitely be in a higher tax bracket when we retire, so the Roth seems to be the way to go for extra retirement money after we take advantage of the full 401k match)

If you are concerned about being in a higher tax bracket and you don't have the money for an RRSP contribution, you may want to consider a 1 - year RRSP loan.

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.

Roth IRAs, on the other hand, are often recommended for younger workers who believe they'll be in a higher tax bracket by the time they retire.

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.

• Take advantage of the Roth variations of your 401 (k) and IRA, especially in your early working years when you may not be in a high tax bracket.

This works well if the contributor is in a high tax bracket and the accountholder will have less retirement assets and / or a lower future income.

If Ricardo was in a higher tax bracket he may not have been entitled to a refund of any of the franking credit, he may even have to pay additional tax.

If the answer is yes, you'll likely be in a higher tax bracket when you retire, which favors the Roth.

If the employee is in a higher tax bracket during retirement than he is when he is putting money in the Roth 401 (k), the plan allows him to pay a lower tax rate than he would in a regular 401 (k)-- since withdrawals during retirement are tax free.

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

If you think that your income is going to go up and that you could be in a higher tax bracket later on, you may choose to forgo the up front tax deduction in favor of a future tax benefit.

I have to question the validity of «we will definitely be in a higher tax bracket when we retire.»

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

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 well.

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.

«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.»

«If you are young worker just starting out and / or expect to be in a higher tax bracket consider a Roth IRA / 401 (k).

But very risk averse investors who are in higher tax brackets and have maxed out IRAs / 401 (k) s may still feel compelled to open such accounts.