457 tax deferred contribution and how it effects my Federal Tax Due

Anonymous — Mon, 03 Jun 2019 20:25:07 GMT

I've almost finalized my taxes and I currently owe $2174. I have not yet contributed to my 457 for 2016 and have a few dollars to due so. I'm wondering how much I need to contribute to get my Federal Taxes Due close to $0. I file "married jointly". Any recommendations?

The only IRA contribution that will reduce your tax is a...

KaylaTR — Mon, 03 Jun 2019 20:25:09 GMT

The only IRA contribution that will reduce your tax is a deductible contribution to a Traditional IRA. A deductible contribution reduces your tax by, at most. the amount of your contribution times your marginal tax rate.

For example, if you can make a deductible contribution and you are in the 25% marginal tax rate bracket, then a $1 contribution reduces your tax by $1 X 0.25 = 25 cents.
If you are in the 25% bracket then it would require a deductible contribution of 3,490 / 0.25 = 13,960 to reduce your tax to zero and you can not get there from here.

topic 457 tax deferred contribution and how it effects my Federal Tax Due in Retirement tax questions

457 tax deferred contribution and how it effects my Federal Tax Due

The only IRA contribution that will reduce your tax is a...