Kevin
Level 2 Member
Hi,
I've got an issue with my yearly contributions - I'm looking for somewhere to park some additional funds and of course shrinking the amount of taxable income would be preferable - any ideas?
I have a company matched (up to 8%) 401k - currently contributing 16%, a Roth 401k (contributing 2%). I hit the yearly limit in around the middle of September for the last few years. My company won't let me accidentally go over, but when they dump the funds into that after tax bucket, it has a detrimental effect on my paychecks until January
Wife is a w2 contractor who's work varies on 6 month or 1 year stints so may have a intermittent work schedule and may be off for say 3 months of the year - her company doesn't match 401k contributions but she dumps about 25% into their 401k, and tops it off in December with a check into her IRA account to meet the limit.
If I understand it correctly, the limit this year is 18k (we can't yet take the extra 5k catch up contribution). That 18k is the total amount (each) that we can contribute to the 401k, Roth 401k, and IRA accounts.
Our home mortgage deduction is only getting smaller, and while there are no tax advantages, we have no car payments or CC debt and have a 9 month emergency fund...
Any opinions on where we could park extra funds, preferably tax advantaged situations?
I've got an issue with my yearly contributions - I'm looking for somewhere to park some additional funds and of course shrinking the amount of taxable income would be preferable - any ideas?
I have a company matched (up to 8%) 401k - currently contributing 16%, a Roth 401k (contributing 2%). I hit the yearly limit in around the middle of September for the last few years. My company won't let me accidentally go over, but when they dump the funds into that after tax bucket, it has a detrimental effect on my paychecks until January
Wife is a w2 contractor who's work varies on 6 month or 1 year stints so may have a intermittent work schedule and may be off for say 3 months of the year - her company doesn't match 401k contributions but she dumps about 25% into their 401k, and tops it off in December with a check into her IRA account to meet the limit.
If I understand it correctly, the limit this year is 18k (we can't yet take the extra 5k catch up contribution). That 18k is the total amount (each) that we can contribute to the 401k, Roth 401k, and IRA accounts.
Our home mortgage deduction is only getting smaller, and while there are no tax advantages, we have no car payments or CC debt and have a 9 month emergency fund...
Any opinions on where we could park extra funds, preferably tax advantaged situations?