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okharren
New Member

I paid off my mortgage, how much additional should i contribute to 401k or deferred compensation program to offset loss of mortgage deduction?

 
1 Reply
Opus 17
Level 15

I paid off my mortgage, how much additional should i contribute to 401k or deferred compensation program to offset loss of mortgage deduction?

Unless your income is really high and you are subject to some of the weird adjustments on schedule A itemized deductions, one deduction has much the same value as another.  If you are going to miss a $6000 interest deduction, you would need to put away $6000 to save the same amount of tax that the interest would have saved.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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