@David265 wrote:
Thanks. Yeah, since my workplace doesn't offer a retirement plan, I end up not being to save for retirement with pre-tax income at all. It's brutal.
The various limits are here.
https://www.irs.gov/retirement-plans/ira-deduction-limits
"brutal" is an odd choice of words. You can still save for retirement via a Roth IRA or non-deductible contribution to a traditional IRA. Not getting the deduction doesn't mean you lose all retirement contribution advantages, it just changes when you pay the taxes. If you play around with the math, the difference between
| A |
B |
| Make $1000 per month pre-tax contribution, and pay tax on all your withdrawals when you retire |
Make $600 per month after-tax contribution and pay no income tax on withdrawals when you retire |
is not that much in the long run, depending on what you think future tax rates will be, what state you might be living in, and so on.
