Okay, we have been maxing out all our possibilities: DH's 401k, my 403b (can only put in income from that small job, so that's only about 3k), and Roths. Our additional savings/investments are starting to cause us some taxable headaches with cap gains distributions and dividends.
Right now less than 30% of our total market investments are sheltered, and more than 70% are not. Even at 15% long term gains rates, we are starting to run into some hefty tax issues this year. So we are investigating ways to deal with this going forward. I guess there are several tactics to deal with this: Tax-managed funds, deferred annuities, and additional, after-tax contributions to 401k.
I wouldn't have thought of annuities after all the guff they get around here, but my dad said he has some, I think through Vanguard, solely for the tax sheltering. He does not ever plan on annuitizing them, can just withdraw from them (probably won't) or pass on to heirs. Is this ever worth doing? Or is dad mistaken?
And I never hear anyone talking about making after-tax 401k contributions, and also don't find much discussion about it elsewhere online, so I was wondering if it is worth doing. The 401k is with T Rowe Price, and has reasonable choices and expenses, but we couldn't have the same great funds that are the cause of all this trouble in the first place. It seems the plan would allow us to shelter an extra 30k/yr.
Any suggestions for us? Thanks in advance.
Right now less than 30% of our total market investments are sheltered, and more than 70% are not. Even at 15% long term gains rates, we are starting to run into some hefty tax issues this year. So we are investigating ways to deal with this going forward. I guess there are several tactics to deal with this: Tax-managed funds, deferred annuities, and additional, after-tax contributions to 401k.
I wouldn't have thought of annuities after all the guff they get around here, but my dad said he has some, I think through Vanguard, solely for the tax sheltering. He does not ever plan on annuitizing them, can just withdraw from them (probably won't) or pass on to heirs. Is this ever worth doing? Or is dad mistaken?
And I never hear anyone talking about making after-tax 401k contributions, and also don't find much discussion about it elsewhere online, so I was wondering if it is worth doing. The 401k is with T Rowe Price, and has reasonable choices and expenses, but we couldn't have the same great funds that are the cause of all this trouble in the first place. It seems the plan would allow us to shelter an extra 30k/yr.
Any suggestions for us? Thanks in advance.