What are some ways to reduce my taxable income other than contributing to a 401k, IRA, and Roth?
I don't want to participate in my companies 401k, however I still want to make regular contributions towards and investment for my future as well as reduce my taxable income. Each year I contribute my maximum contributions into my Roth and IRA and will continue. I need an alternative for my 401k contributions. I want more control and transparency.
Public Comments
- Roth contributions do not reduce your current tax liability. Conventional IRA contributions do if your income is under the deductible limit. But a 401(k) plan is still the best way to reduce current taxes. Can't you find ONE investment option in your 401(k) plan that you can live with? If not, consider investing in muni bonds. It won't reduce your current tax liability but the interest is tax free (federal and sometime state).
