lhamo,
We currently make between 90-100K a year as a couple (I moved to part time this year so don't have exact number just yet). We have two kiddos and file jointly. For 2018, I'm wondering if I can get us under the 77,400 by moving our next four paychecks into 403bs and 457 in their entirety - but it isn't super clear to me how much money we would gain by doing that.
In 2019, would it be beneficial get us into the 10 percent bracket? (36 + 36 + 5500 each into IRAs) or is that money better utilized by investing tomorrow in an index fund and taking advantage of an earlier investment and compound interest? We are relatively new to this concept so I'd prefer not to miss something.
Tax rate Taxable income bracket Tax owed
10% $0 to $19,050 10% of taxable income
12% $19,051 to $77,400 $1,905 plus 12% of the amount over $19,050
22% $77,401 to $165,000 $8,907 plus 22% of the amount over $77,400