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Author: WesOrt One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 125003  
Subject: Re: Retirement Taxes Date: 12/10/2005 1:42 PM
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<<So, your taxes increase by 6K+, but your income increased 24K. You may want to argue that your income hasn't increased at all (that is, your gross income is unchanged, you've only taken advantage of tax law provisions to lower your current taxes). However, the taxes you will pay in the future on the 24K that you've taken out of your currently taxable income will be much greater than 6K+ assuming you make wise investment choices within your retirement plans. The key comparison is whether the tax rate not the tax dollars will be higher then or now. No one can answer that question for you, You can determine what you think your income picture will look like in retirement, but no one knows what Congress and state legislatures will do with tax rates.>>

Well, it's clear I have a lot to learn about taxes and how they work. I'm planning to meet with a tax consultant locally.

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