I recently spoke with a financial planner. I was explaining how I sold my parents estate last year and wanted to invest the money. She recommended that since I had not maxed out my 401k contributions for the tear, that I should increase my payroll deductions to max out my pretax contributions and that I supplement the shortage in my paycheck with the funds from the estate sale proceeds. She indicated it would lower my taxes at the end of the year by doing this.
I am hesitant to do this because my mind feels like I am eating cash in the bank (despite realizing what she stated sort of makes sense).
I wanted an opinion on this approach.
just for reference sense last year we missed the ability to be able to deduct college expenses because we made too much income but we missed the cut off the irs sets by about $10k. I’m wondering if doing this would make any difference in lowering my taxes to be able to even qualify in taking the college expense deduction. Is there any way for me to calculate what benefit I would have in doing this?
thanks in advance
