Author Topic: Sell taxable to invest in company pre-tax account?  (Read 1190 times)

pdxvandal

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Sell taxable to invest in company pre-tax account?
« on: May 18, 2015, 10:48:43 PM »
Hi folks.

I'm starting a new job soon with a deferred compensation (457) plan. I'd like to max it out for this year (18k), which would likely leave me with about $1,000 in my emergency fund by December. I have about 50k in taxable accounts. To gain the tax advantages, would it make any sense to sell a few thousand bucks in taxable funds and re-invest it into the 457 instead of depleting nearly all the cash emergency fund? In doing so, I'd also come pretty close to the 15% federal tax bracket.

Has anyone considered or done this for their pre-tax retirement savings?

Thanks.

Psychstache

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Re: Sell taxable to invest in company pre-tax account?
« Reply #1 on: May 18, 2015, 11:12:05 PM »
I am doing this. I cash out taxable over time while I max out my 403b and 457.

MDM

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Re: Sell taxable to invest in company pre-tax account?
« Reply #2 on: May 18, 2015, 11:17:37 PM »
To gain the tax advantages, would it make any sense to sell a few thousand bucks in taxable funds and re-invest it into the 457 instead of depleting nearly all the cash emergency fund? In doing so, I'd also come pretty close to the 15% federal tax bracket.
If you expect your income to increase, and you can take some LTCGs now while paying 0% tax, why not?  That is a good idea on its own merits. 

If this allows you to contribute more to the 457, all the better!

forummm

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Re: Sell taxable to invest in company pre-tax account?
« Reply #3 on: May 19, 2015, 09:54:44 AM »
I would totally do that.