I currently have $600k in student loan debt (dentist) and am on IBR for repayment. I need to lower my AGI for tax purposes and my order of investment to lower AGI is:
- Max RothIRA (for me and spouse)
- max HSA (family)
- max 401k with company match
Is there anything else you would recommend that I can do to lower AGI and tax burden?
Some things that were recommended to me was
– filing taxes late for lower IBR payment and using older years for the IBR payment
– starting my own dental practice and becoming a 1099 worker
– FSA? idk what that even is?
– Traditional IRA, but im already maxing my Roth IRA
Lowering Tax Burden and Maximizing Investment
byu/IntelligentMind200 intax
Posted by IntelligentMind200
2 Comments
1. You probably make more than the Roth Limits. The Roth also does not lower your tax burden. You want a tIRA
2. Sure
3. This is your first bucket to fill out.
-IBR is part of the game, but remember, filing and paying can be two different things
-be SE to be SE and to make money, not to “pay less in taxes,” I promise it won’t work.
-FSA requires your work to offer it, and to have some tangible benefit to you. I wouldn’t worry about that unless you have a kid in daycare or major ongoing medical care.
Roth IRA doesn’t lower AGI.
I don’t believe you can have both a FSA and HSA.
Make sure you’re maxing the full 401k limit, not just the 401k employer match.