So I'm currently trying to fund as much of my 2016 contributions as possible before april 15th and minimize my tax burden for self employment income.
Here is the situation: Married in November.
Employer 1 Gross: $33,615 (1 withholding)
Withholding in Texas: Fed: $2,700
SS: $1,912
Med: $447
401k Roth: $1188.08
401k Trad: $662.81
401k Match: $1,388
LLC Business (probably functionally self employment for 2016): $29350
Withholding: None yet. All paid while in South Carolina -has a state tax, but $9000 was earned while working in Texas.
According to Vanguard Solo 401k Calc max contributions = $22,638.24
Therefore business contributions to 401k = $4638.24 (Not Yet placed into solo 401k)
Wife Estimate: ~$16,000 (2 children so 3 withholding)
Withheld- no clue atm.
401k: $0
HSA from high deductible plan for myself and 1 child 2016 Contributions = $6750 (Contributions completed).
Of the remaining: $16149.11 that I can contribute to the solo 401k $5000 is done.
My wife and I both have Vanguard tIRA and Roth IRAs set up for whichever makes the most sense if we can fund them for 2016 before April.
Both our IRAs are currently at Zero.
So: HSA: $6750 out of $6750
401k mine: $6850.89 out of $18,000
401k Employer: $1,388 out of $6,026.24
IRA mine: $0 out of $5,500.
IRA hers: $0 out of $5,500.
Strictly from a tax perspective not a long term retirement perspective is it better to work on my 401k w/ matching to the limit or put anything into our IRAs.
I'm thinking that IRAs should be last, but I'm not sure at our income level if it matters. For example should I just worry about the employer contribution portion for the 401k then do our IRAs.
All accounts except the HSA are with Vanguard so the options should be the same regarding fees and fund choices.
Also will the $9k earned while living in Texas but paid after moving to South Carolina subject to SC income tax, similar to how income earned in 2016 but paid in 2017 applies to 2017 taxes.
