I'm maxed out on my 401K contributions, and we put $2,000 each (my wife and I) in Roth IRAs. Is there anywhere else we can rathole some money with some tax breaks?

I'm maxed out on my 401K contributions, and we put $2,000 each (my wife and I) in Roth IRAs. Is there anywhere else we can rathole some money with some tax breaks?

If there are stocks or tax-efficient mutual funds that you want to invest in for the long haul, the fact that the investment is in a taxable account won't necessarily mean much current tax. Capital gains are not taxed until you sell, and then at favored rates if you've held for more than a year.

TMF ExRO
Phil Marti

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Is there anywhere else we can rathole some money with some tax breaks?

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If your employer offers a "Cafeteria Plan," you could add pre-tax $$$ to pay for expected medical expenses and/or health insurance premiums, and child daycare costs within the calendar year.


Lee