I'm somewhat of a noob, so this might not even make sense, but here is what I'm wondering. Perhaps you have to either choose to take the standard mileage deduction or to put the earnings into a 401k. If you do the 401k, you can have the money/investments grow tax free, but you would have to pay taxes on it eventually and they would be taxed at income tax rates. I guess if it grows for long enough, having more money initially to start growing would be worth it, even if you lose out on getting to take the standard mileage deduction (you will have to pay full income taxes later) and you will have to pay income taxes instead of capital gains taxes later. I suppose having any growth (dividends, etc) be tax free might be good too. I don't know how to think about all of this and I don't know any sort of rules of thumb to help me. I'm 30 years old btw and working towards retiring early.
Submitted December 09, 2020 at 09:40PM by spreadlove5683 https://ift.tt/3gAFZwP
