Thread: Tax Liability
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Old 12-22-2023 | 02:48 AM
  #18  
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JulesWinfield
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Originally Posted by ZapBrannigan
I was thinking of fully funding my 401K this year as opposed to Roth 401K to lessen the tax liability.
This is normally a bad idea, as Roth ends up being a better deal, but you'll have to run the numbers for your specific situation. As someone pointed out, this is progressive, so it isn't like you are paying a huge amount more when you jump to a higher bracket, only the amount of income that is pushed into the higher bracket will be charged the higher rate.
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