For instance, if one were to make $60k per year, they would need to invest about 16% of their gross pay to bring them from the 22% tax bracket to the 12% tax bracket (assuming single and $12k standard deduction).
Would it be more advisable to invest that 16% in a 401k and put $0 in a Roth IRA (this putting them in a lower tax bracket)? Or should one just take the company match 401k (let's say 5%) and invest the other 11% (minus taxes) into a Roth IRA (and pay a little at the 22% tax bracket)?
For this scenario, let's assume 30 year old starting fresh (no investments and $0 in debt).
Submitted January 16, 2018 at 08:04PM by CasualObserver89 http://ift.tt/2Ditplz
