20 Miles West of Indianapolis Indiana | STFB - 1/28/2019 06:10
max out the contribution. assuming 28% tax bracket + 10% penalty for early withdrawal, you would still be 4% ahead for free (without market gains/loss). Or pull it out for tile and 179 the withdrawal amount, only have to pay the 10% penalty and be 32% ahead. The popular response will be max contribution and never withdraw till retirement.
I’ve had the same exact idea as you. Doing the same math. Looks like a winner if I hold on to till retirement or use to purchase tax deductible items... |