Tiago Splitter wrote:kalvano wrote:Danger Zone wrote:Do you have access to a 401k? If not, open a deductible IRA account. You need to start copping dem sweet pre-tax benefits.
Once you hit a certain income level, you don't get full credit for the $5,500 IRA contribution. At that point, I'd rather stick it in a Roth and take the future benefits.
If you don't have an employer plan (and your spouse doesn't either) you can always get the full IRA deduction.
I can take the deduction, but deducting the whole $5,500 only saves like $1700 on my taxes. I'd rather go with a Roth and not have to pay taxes later on. That's more a personal call for me as I like that certainty that comes with tax-free withdrawals. I know for a fact I can take a $1700 hit right now, but I don't know what the future holds.