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Pre-tax 401k Contributions
- Focus on pre-tax 401k contributions when your combined tax rate is above 33%.
- This strategy offers significant tax savings, acting like an immediate 33% return.
Maximize All Opportunities
- Explore Roth conversions and annual Roth IRA contributions alongside maximizing tax deductions.
- Also consider HSAs to optimize all available opportunities for your household.
Verify Tax Bracket
- Double-check your actual tax bracket, especially with a high savings rate.
- Maxing out pre-tax 401ks can lower your taxable income and potentially reduce your tax bracket.