Congratulations on your new job! Since I don't know your filing status and specific amounts from your various income streams, I will give you some general information on how this will affect your tax situation:
- Since your AGI may now exceed $150,000 any rental losses will no longer be allowed to offset non-passive income and may have to be carried forward indefinitely until a) you receive other passive income to use the losses against or b) you sell the property, in which case all passive activity loss carryovers can be used to offset the gain on the sale.
- You can max out your traditional 401(k) contribution at $23000 plus an additional $7500 for being over age 50 for 2024. This way you can enjoy the tax deferred benefit while socking money away for your "real" retirement. Generally, max contribution limits increase each year.
- You can also max out a non-deductible contribution to a traditional IRA ($8000 for age 50 or older in 2024) and back-door it into a Roth IRA so that it grows tax free. You will want to consult a financial advisor in the brokerage that you choose to open your IRAs in for information on qualification.
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