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Money and Finances
Reply to "2025 SALT Deductions"
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[quote=Anonymous][quote=Anonymous]New thought: for those of us over 50 with catch-up TSP contributions, if those start going to Roth in 2026, will that increase our taxable income, potentially impacting the SALT/tax analysis?[/quote] That's a good point. 401K catch-up contributions starting in 2026 have to be contributed to a Roth 401K and thus will not be deductible on your income. If you were close to the $500K SALT threshold before that extra taxable income will now start decreasing your SALT deduction. Also it may kick you into a higher income tax bracket and capital gains bracket. And if you're on Medicare, it may bump you into a higher IRMAA bracket in 2 years. Lots to think about.[/quote]
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