Tax reform impact

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01-20-2019 | 08:14 AM

#21

ParkingatMIA

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Joined: Aug 2016

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Quote:

Originally Posted by rickair7777

Eventually he'll tell you that maxing out your 401k is a bad idea, but you'll learn about that later on.

So what’s the best order?

- 401(k) match

- HSA Max

- Roth IRA Max

- 401(k) Max

?

01-20-2019 | 08:35 AM

#22

Excargodog

Perennial Reserve

Joined: Jan 2018

Posts: 14,248

Likes: 257

Quote:

Originally Posted by TJBrass

You forgot marriage advice.

What do you mean? I thought there was no substitute for experience? And I know a senior American Captain who is currently on marriage 5!

01-20-2019 | 08:40 AM

#23

tonsterboy5

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Quote:

Originally Posted by Excargodog

What do you mean? I thought there was no substitute for experience? And I know a senior American Captain who is currently on marriage 5!

Does he take home less than a first year regional FO? I can’t imagine what 4 divorces would do to his bank account

01-20-2019 | 09:16 AM

#24

rickair7777

Prime Minister/Moderator

Joined: Jan 2006

Posts: 45,127

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From: Engines Turn or People Swim

Quote:

Originally Posted by tonsterboy5

Does he take home less than a first year regional FO? I can’t imagine what 4 divorces would do to his bank account

Maybe he learned about pre-nups from the first one. Apparently didn't learn much else. Good God, why would anyone do that to themselves?

01-20-2019 | 09:25 AM

#25

rickair7777

Prime Minister/Moderator

Joined: Jan 2006

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From: Engines Turn or People Swim

Quote:

Originally Posted by ParkingatMIA

So what’s the best order?

- 401(k) match

- HSA Max

- Roth IRA Max

- 401(k) Max

?

Depends entirely on your personal circumstances.

Generally if you have a match available, contribute what you need to get the max company match, otherwise you're leaving money on the table.

Majors tend to have a 15-16% direct contribution, not a match, so you don't have to contribute anything. You can contribute in addition to the company contribution but if you're going to end with a huge 401k at retirement, you will have unavoidable mandatory distributions starting at age 70, which could literally be larger than your annual income while working. That would put you in a very large tax bracket. For that reason sometimes it's better to do other things with your discretionary money than 401k contributions. Probably not an issue until you're at a major. It's hard math but CFPs know how to figure it out for you.

01-20-2019 | 04:25 PM

#26

JayBee

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Soooo....

Has anyone that has basically the same income and circumstances as last year done a last year vs this year comparison?

01-21-2019 | 05:05 PM

#27

StrykerB21

Line Holder

Joined: Jun 2016

Posts: 400

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Quote:

Originally Posted by JayBee

Soooo....

Has anyone that has basically the same income and circumstances as last year done a last year vs this year comparison?

My income this year was virtually identical to last year and I managed to keep an extra 1500 this year.

01-22-2019 | 09:10 AM

#28

JayBee

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Quote:

Originally Posted by StrykerB21

My income this year was virtually identical to last year and I managed to keep an extra 1500 this year.

Thank you for the non political answer

01-23-2019 | 04:31 AM

#29

ninerdriver

Porco Rosso

Joined: Apr 2018

Posts: 2,522

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Once folks start filing, I'd like to hear from someone whose income stayed the same and who owns a house that they bought at least two years ago.

Similar income, similar expenses... what's the result?

01-26-2019 | 07:29 AM

#30

Nevjets

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My effective tax rate for 2018 compared to 2017 is 10.8 vs 12.4 and when I ran my 2017 numbers through 2018’s new tax law brackets the difference is greater, 10.4 vs 12.4.