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Hi everyone,
I am a UPS driver about 6 years from retirement and have a question for you that I haven't been able to figure out on my own or through Googling endlessly.
I live in Oregon, which has about a 9% state income tax.
When I retire, I will be retiring in either Florida or Mexico and in either case, there will be no state income tax.
So, if I just keep contributing to my standard 401k, it lowers my STATE taxable income now, which I will never have to pay later.
If I do a roth 401k, I won't have to pay any taxes later, but Oregon will get it's full chunk from me now.
So, can anyone tell me which option puts more money in my pocket in the end?
Basically, I don't know if reducing my current Oregon tax liability now with a standard 401k will save me more or less than with a Roth 401k if I retire somewhere that doesn't have a state income tax at all.
If it matters with the math at all, my gross income is about $90k/year
Thank you in advance for any advice.
Steve
I am a UPS driver about 6 years from retirement and have a question for you that I haven't been able to figure out on my own or through Googling endlessly.
I live in Oregon, which has about a 9% state income tax.
When I retire, I will be retiring in either Florida or Mexico and in either case, there will be no state income tax.
So, if I just keep contributing to my standard 401k, it lowers my STATE taxable income now, which I will never have to pay later.
If I do a roth 401k, I won't have to pay any taxes later, but Oregon will get it's full chunk from me now.
So, can anyone tell me which option puts more money in my pocket in the end?
Basically, I don't know if reducing my current Oregon tax liability now with a standard 401k will save me more or less than with a Roth 401k if I retire somewhere that doesn't have a state income tax at all.
If it matters with the math at all, my gross income is about $90k/year
Thank you in advance for any advice.
Steve