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First, does my logic make sense? Or am I overlooking something big?

Second, what are the requirements on 401k's and ROTH IRA's. I've already made my full 2007 contribution.


Yes, it makes sense. I assume your full 2007 contribution refers to the Roth IRA. You can contribute up to $15,500 to a 401K in 2007. If you turn 50 this year then you can add another $5,000. So crank up your contribution percentage to lower your income taxes keep some of your other largess in *your* bank account.

Probably the question bugging you is it worth dipping into some of the gains to cover for the lower take home pay because of the increased 401K contribution. You can spend the extra money you need this year and lower the 401K contribution for 2008.

Paul
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