Author Topic: What to do with my 24K GOP Tax Bill "Windfall"?  (Read 3082 times)

schmerna

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What to do with my 24K GOP Tax Bill "Windfall"?
« on: November 20, 2017, 08:28:33 AM »
If one of the current tax bills becomes law, I will need to find a new home for my current pre-tax 457b contribution ($18,500) and post-tax backdoor Roth contribution ($5,500).  Obviously, I have already contact my senators and representative to voice my opposition to the bill. 

However, worst case scenario, where is the best place to stash this cash until the tax code changes again?

Options:
Taxable brokerage account
Pay down mortgage (3.25%, $130,000 remaining over ~5 years)
Pay down car payment (1%, $7,000 remaining over ~1.5 years)
529 plans- I have plans for the 3 children.  They are on track to pay for about 3 years in-state tuition, room and board. 

Am I missing any options?

https://www.forbes.com/sites/ashleaebeling/2017/11/10/the-senate-401k-grab/#2b8aad166360
Mods:  Feel free to move to a more appropriate location

nereo

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Re: What to do with my 24K GOP Tax Bill "Windfall"?
« Reply #1 on: November 20, 2017, 08:45:13 AM »
Quote
However, worst case scenario, where is the best place to stash this cash until the tax code changes again?

There are currently two bills, and neither will become law without - at a minimum - some modification.  Ergo, it's premature to plan.
Wait until a bill passes both the house and senate before drafting up stategies.

FWIW this would be better in the tax sub-forum.

DS

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Acastus

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Re: What to do with my 24K GOP Tax Bill "Windfall"?
« Reply #3 on: November 20, 2017, 03:28:01 PM »
Oppose the tax cuts for billionaires bills. That is the only action for now. The final version is a ways off, and it will be pretty different than what we see now.

shuffler

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Re: What to do with my 24K GOP Tax Bill "Windfall"?
« Reply #4 on: November 20, 2017, 11:54:06 PM »
If one of the current tax bills becomes law, I will need to find a new home for my ... post-tax backdoor Roth contribution ($5,500).
I don't think the Backdoor Roth is on the chopping-block.
Should still work, from what I've seen/read.

schmerna

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Re: What to do with my 24K GOP Tax Bill "Windfall"?
« Reply #5 on: November 21, 2017, 07:41:22 AM »
Oppose the tax cuts for billionaires bills. That is the only action for now. The final version is a ways off, and it will be pretty different than what we see now.

Thanks, I have already talked to my senators and rep about this aspect.  Although, I am fairly certain sure I didn't change any hearts or minds.

schmerna

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Re: What to do with my 24K GOP Tax Bill "Windfall"?
« Reply #6 on: November 21, 2017, 07:42:10 AM »
If one of the current tax bills becomes law, I will need to find a new home for my ... post-tax backdoor Roth contribution ($5,500).
I don't think the Backdoor Roth is on the chopping-block.
Should still work, from what I've seen/read.

Thanks, you might be right and that would be good news.  I am trying to find my source for that part. 

schmerna

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Re: What to do with my 24K GOP Tax Bill "Windfall"?
« Reply #7 on: November 21, 2017, 07:43:56 AM »
https://forum.mrmoneymustache.com/investor-alley/investment-order/

Thanks, it indicates I should stick it all in the taxable account.  The 529 plans aren't in the investment order but might make sense in my case.