Ever since I found MMM, I have been devouring financial knowledge and trying to read and learn everything I can. I have read tons of the boglehead stuff, but a lot of it is still really over my head. My question is about my specific scenario, and the best way to handle my money in order to minimize taxes. If anyone knows of a calculator that I can use, that would be really great too. My husband recently got a full time job (after being without one for a very long time, so I know this is going to have a large impact on things, and I want to catch it before it bites me).
Net Income:
Me: $682 weekly (plus $6700 one-time bonus)
Roth 401K per week (Just like a 401k except comes out after taxes): $137
Husband: $893 biweekly
401K per pay period $130
Medical/Dental comes out also, $76.96 per pay period
We are also each contributing to Roth IRAs, but they are only about 1/2 funded, and although I am doing my best, I am not sure that we will be able to fully fund them both before the period ends. My husband is not fully on board with mustachianism, so it is a one (wo)man effort at this point.
I was sitting with our HR lady the other day (small company, nice lady, but not really well versed in this stuff), and she suggested that I switch my 401K, or part of it, over to a standard 401K (pre-tax), so my paycheck would be larger. Now, I know that wouldn't necessarily be the right thing to do just to get a larger paycheck, but at the same time, I realized that we most likely have kicked ourselves up into the next tax bracket with my husband's new job.
So I guess my questions are:
Is there a calculator that would show me the advantage of having some of my money go into a 401K verses the Roth 401K when it comes to paying taxes?
and
Do any of you with more experience have any suggestions about allocating money for taxes given the numbers above?
We will not itemize, we don't own a house or have kids, and we are (no longer) students. DH is claiming M1 (married/one exemption) on his withholdings and I am claiming S1 (single/one exemption). I am afraid of not having enough money taken out and having to pay....I would rather get a refund even though it is a small loan to Uncle Sam.
Thanks for your help and for reading my long question!