Am I missing on any tax deferred investments?

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chuppi
Posts: 139
Joined: Sat Jun 16, 2012 9:47 am

Am I missing on any tax deferred investments?

Post by chuppi » Mon Oct 23, 2017 10:59 am

Gross income - 280K. State CA. Don't work for the government.
- We are maxing 401K
- We are doing 5.5K back door RoTH each
- We have college fund for 2 kids
- One of us has HSA option. We max that starting this year
- We take the 5K FSA allowed per year

Are there any other tax deferred account (or ways to save on tax) that we are not taking advantage off?
Thanks

aristotelian
Posts: 4893
Joined: Wed Jan 11, 2017 8:05 pm

Re: Am I missing on any tax deferred investments?

Post by aristotelian » Mon Oct 23, 2017 11:04 am

Interest on I Bonds and EE Bonds are tax deferred. Those can be used for your bond allocation to increase space in your retirement accounts. That's about it as far as I can tell.

Is the FSA limited purpose? I was under the impression that you cannot do FSA with HSA.

Ron Scott
Posts: 1090
Joined: Tue Apr 05, 2016 5:38 am

Re: Am I missing on any tax deferred investments?

Post by Ron Scott » Mon Oct 23, 2017 11:25 am

There are several other ways to save on taxes, like allowing stock and real estate to appreciate without selling and basic asset location strategies (holding stocks and munis in your taxable accounts and bonds in your tax deferred). You can also be selective on any stock funds in your taxable accounts to ensure they're tax efficient with regard to churn.
Retirement is a game best played by those prepared for more volatility in the future than has been seen in the past. The solution is not to predict investment losses but to prepare for them.

trueson1
Posts: 95
Joined: Mon Mar 13, 2017 11:40 am

Re: Am I missing on any tax deferred investments?

Post by trueson1 » Mon Oct 23, 2017 11:29 am

Not tax deferred but will get more money into Roths from 401k. Search topics on Mega Backdoor Roth.

chuppi
Posts: 139
Joined: Sat Jun 16, 2012 9:47 am

Re: Am I missing on any tax deferred investments?

Post by chuppi » Mon Oct 23, 2017 11:47 am

Thanks. Bonds are mostly in 401K and so I am good.
Hopefully I am using the right terminology here.
One of us and the kids are on the HSA plan. We can fund the account with the after tax money and invest it. It will grow tax free and can be used for medical expense.
The FSA is for childcare. I can get the 5K before taxes. I should show the receipts. It does not carry forward if the expenses are below 5K.
Ron Scott wrote:
Mon Oct 23, 2017 11:25 am
There are several other ways to save on taxes, like allowing stock and real estate to appreciate without selling and basic asset location strategies (holding stocks and munis in your taxable accounts and bonds in your tax deferred). You can also be selective on any stock funds in your taxable accounts to ensure they're tax efficient with regard to churn.
Thanks Ron
As of now, I have only stocks in taxable account. If my AA calls for non stock funds, I will search on muni.
trueson1 wrote:
Mon Oct 23, 2017 11:29 am
Not tax deferred but will get more money into Roths from 401k. Search topics on Mega Backdoor Roth.
Thanks trueson1. My total tax (including state, federal, etc..) is around 40cents on the dollar. I plan to retire or earn less between 55 and 65. I will be in a lower bracket then and will convert from 401K to Roth. Thanks for pointing out.

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