The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Tax strategies for high W2 earners?||Date: 3/1/2013 10:35 AM|
|Author: Wradical||Number: 117914 of 125707|
Was wondering if there are any tax strategies that high income earners -whose earnings come primarily through w2 income- can use? Aside from starting one's own business, using a backdoor Roth conversion/contribution, and trying to generate more dividend income, are there any strategies you can reccommend? I realize the term "high income" is pretty subjective.....we are not a one-percenter family, just feel like we are paying taxes like one....
What Phil said about maximizing 401(K) deferrals and using other tax-advantaged benefit plans through your job.
And I'm not sure you understand Roth conversions (2-step,or "backdoor", or otherwise.) The two-step method -(nondeductible IRA, followed by a conversion to a Roth) does not lower taxes, until you're ready to withdraw. And a regular Roth conversion costs you tax dollars now.
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|