Doing the math for myself, assuming let's say 120k job for #1 and 200k salary for job #2.
Job 1: 120k gross, 401k Job 2: 200k gross, no-401k
Then let's assuming I'll be in the 28% marginal tax bracket.
Also for student loan purposes, I will be paying 10% of my AGI.
With all that said, putting away 18,500 for my 401k for job #1 saves me about $5180 in taxes. It also lowers my AGI to about 101,500 where as my IBR/REPAYE/PAYE loan repayment schedule is based off of, and comparing that to the 200k job with no 401k, that's a $9800 net difference in loan repayment for year 1.
Thus, seems like job #1's 401k is "worth" about 15k in total. The job income difference, however is 80k. This is a no brainer right? Obviously job #2 is the way to go.
But since I won't have a 401k, I'll just maximize my tax investment accounts like my Vanguard funds.
Am I thinking straight here? Thanks.
Submitted December 24, 2017 at 02:51PM by hotlineforhelp http://ift.tt/2BLbGTe
