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Reply to "How do you make maxing out TSp/401K work?"
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[quote=Anonymous][quote=Anonymous]Did you increase to 10% before or after your tax person told you to? Just trying to get a sense for if you've already adjusted to lower your tax burden. If the 10% was before, then you can afford to increase your contribution. It will lower the amount of Fed taxes that you owe. Since you can afford to pay those, you need to look at it as you are redirecting what you would have paid in taxes to your own retirement. Don't pay the Feds when you can pay yourself.[/quote] I increased after. But, that's a good way to look at it. Either try to lower agi now, or pay $4000-5000 every year in April. [/quote]
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