So recently I’ve decided to max out my 403b to the contribution limit of 20.5k moving forward, and had some questions. Im currently in my 20’s making roughly 72k/yr (22% tax bracket), and was thinking of switching to a traditional 403b to reduce my taxable income.
If I’m calculating this correctly, should I choose to max my 403b in a traditional account, my AGI should be decreased to below 40k into the 12% tax bracket:
72k - 12.9k (2022 standard deduction) - 3k (pretax deductions for commuter/health insurance/HSA/etc) = 56.1k
56.1k - 20.5k (trad 403b contribution) = 35.6k taxable income at 12%
Is my understanding of this correct? Also, should I just stick with a full traditional or allocate a portion to the Roth 403b?
Thank you in advance
Submitted December 23, 2021 at 08:09AM by jkim478 https://ift.tt/3msYiIs
