"I believe it is almost always best to defer tax by using a traditional 401(k). If you run the numbers you will see that reducing your income by a $15,000 contribution will result in a significant tax saving, and will thereby reduce your quarterly tax payments also since your income for the tax year is lower."
This gives me something to think about. And, it is an interesting distinction between a Roth IRA and a Roth 401(k).
Our income reduced when my husband became disabled, and being on Medi-Cal now, adjusted income is a factor for qualification. But, I have always considered taking non-taxable income at retirement to be optimum. Food for thought, for sure. And CA may exempt all Roth's (re: MediCal), I need to look into that more. It's good to have the information. |
