zbackParticipantStatus: PhysicianPosts: 42Joined: 12/05/2016
Wife is going to work part time (10-15k yearly) now to keep her busy, all of her income will be disposable. I’m trying to figure out how to avoid a extra tax hit from that. I already max out a Roth for her. I don’t think she will have any retirement account offered through the job. Recommendations?June 29, 2019 at 11:07 am MST #226359PedsModeratorStatus: PhysicianPosts: 4715Joined: 01/08/2016I’m trying to figure out how to avoid a extra tax hit from that.Click to expand…
well for one, stop working.I already max out a Roth for her.Click to expand…
doesnt change taxes.I don’t think she will have any retirement account offered through the job.Click to expand…
you dont say if she is 1099 or W2. that will change the answer.ZZZParticipantStatus: SpousePosts: 730Joined: 06/18/2018
She can’t think of any better ways to keep herself busy than some trivially low paid job? Unless part time means single digit hours per week, that seems like a pretty bad time for $ trade.
No idea what you make, but she could probably save you more than 10k annually by spending that time learning about personal finance and optimizing your situation.pierreParticipantStatus: ResidentPosts: 211Joined: 02/01/2016June 29, 2019 at 12:04 pm MST #226372CordMcNallyParticipantStatus: PhysicianPosts: 3073Joined: 01/03/2017
Let her do whatever she wants with it.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
― Benjamin Graham, The Intelligent InvestorwideopenspacesParticipantStatus: PhysicianPosts: 1213Joined: 01/12/2016
I feel like this question is best posed to your wife . . . 😊Larry RagmanParticipantStatus: Other ProfessionalPosts: 639Joined: 08/30/2018
If her employer offers a 401k, max that out for additional tax deferred space. Otherwise, of course, she will be taxed at your marginal rate.June 29, 2019 at 12:17 pm MST #226376Larry RagmanParticipantStatus: Other ProfessionalPosts: 639Joined: 08/30/2018
Oh, I see from OP one is not offered. Then I’m not sure there is a way around the taxes.June 29, 2019 at 12:20 pm MST #226377TimParticipantStatus: AccountantPosts: 3380Joined: 09/18/2018
How about an old fashioned IRA instead of the fancy Roth? Peds pointed towards a solo 401k if she can swing it 1099.
Contrary to some, you are a lucky man. Say thank you if she decides Gross Pay is for a nice vacation and she invites you. She could really use a break if she can get timeoff approved. Respect her efforts. It’s not all about the Benjamins.June 29, 2019 at 12:52 pm MST #226384PedsModeratorStatus: PhysicianPosts: 4715Joined: 01/08/2016How about an old fashioned IRA instead of the fancy Roth?Click to expand…
over the income limit…June 29, 2019 at 12:55 pm MST #226386zbackParticipantStatus: PhysicianPosts: 42Joined: 12/05/2016
Going to be W2 income for her. Household income is in 35% bracketJune 29, 2019 at 1:16 pm MST #226388DCdocParticipantStatus: PhysicianPosts: 607Joined: 06/14/2016
It’ll probably cover her gas to drive to work, and the food she’ll eat while working, after taxes are paid. I guess you could take a week per year of vacation “on her.”wonka31ParticipantStatus: PhysicianPosts: 715Joined: 03/24/2018
I mean even if you’re in the 37% tax bracket plus state taxes, you’ll pay maybe 40% ‘off the top’ in taxes, leaving 60% gross. So you still have $6-$9k left over and that’s not nothing. If you don’t need it, I’d say invest half and spend the other half on whatever the heck you two want to. Although it’s not life changing money, that’s a lot of money to some people. For you, that covers a great vacation, multiple 529 contributions if you have kids, a few mortgage payments, fun money, etc. If she likes the work and can make that much while doing it, good for her.LordosisParticipantStatus: PhysicianPosts: 2222Joined: 02/11/2019
My wife’s work after taxes barely covers the child care. But if keeps a foot in the door for her and she wants to do it. Even if it was a small loss I would not oppose if she wanted it.
“Never let your sense of morals prevent you from doing what is right.”ZZZParticipantStatus: SpousePosts: 730Joined: 06/18/2018
“I mean even if you’re in the 37% tax bracket plus state taxes, you’ll pay maybe 40% ‘off the top’ in taxes”
FICA plus state tax probably gets to almost 50% marginal.
If you’re in the 35% bracket (408-612k mfj) like OP said he is, gotta be a pretty sweet gig to justify the bother for 5-8k post tax. And if it’s that sweet, why not full time?June 29, 2019 at 7:55 pm MST #226448