Originally Posted by
irrelevant
Yes, every w-2 dollar I earn at PSA is taxed at 39.6%, because if I didn't earn it, I'd still be paying 39.6% on the "last dollar earned". It is absolutely in my interest to reduce my w-2 income by maxing the 401(k) contribution. It's not about earning less - it's about retaining and growing more of what little I earn flying airplanes.
My main point (however poorly stated) that people need to hear is that earning enough to put you into a higher tax bracket doesn't automatically go back and tax all of your earnings below that bracket at a higher rate. So when I hear people say that don't want to earn enough to put them in a higher tax bracket I tend to groan a little inside because it seems obvious that there's something they don't understand.
Now if you have enough passive income (or you're married to a doc) that you can afford to max out a 401(k) while still having enough to maintain whatever lifestyle you expect, then by all means. BUT, if one's income is under the limits for a Roth IRA, then they should max out their 401(k) match, then the Roth, then back to the 401(k).