ESTES Express (5 Year Review)

I hear that I ran out of 055 for 3 months. Eff that. I went back to my industrial maintenance job lol

 

Have 10k to spare before jumping another Fed tax bracket to 22%, At 12%, no problem. You have to max out 401k, IRA and HSA to do it. If Married (I'm not), god forbid, different story, different numbers.

 

If your a LTL driver and in the 12% tax bracket, you must be working part time. Remember it only increases your rate over the limits, not the income below. I wish I had the income to pay 37% on Jan 1 of every year.

 

Oh, you want to talk exact numbers, just my kind of game. Remember all pre-tax retirement contributions come off gross income.
Okay,
401k (over 55) 30K
IRA 7.5k
HSA (over 55) $3,850 (Estes matches + 1k)
Total = 41,350

single standard deduction for 2023 is 13,850

That means the first 55,200 is tax free Federal income.

12% tax bracket maximum is 44,725
So the maximum you can gross is 99,925 be it any other numbers could effect that final number.
So are you telling me that you couldn't be full time and gross 99,925 and be in the 12% tax bracket?
Note: Not talking about SS, medicare and state taxes. Yes, additional

 

Exactly. I grossed over $100k a year for several years before I retired 3 years ago. Chase the money. It pays you back. And yes I fully invested in my 401k, an IRA, a HSA.
I'm comfortable.
Sorry I did not mean to come across as controversial. But do you make the $99k.

 

Everybody has to find their comfort zone. You were wise to max out your contributions!!! Good for you!
For me, like KaoMinerva, I'm too lazy. Last year I made 92K (so I did a Roth IRA contribution) Take time off so I don't go over that amount. Why pay an extra 10 percent of your net for taxes? You would really have to go over that amount to make it worth it. I don't get anything more for doing it. Same vacation pay, same rate of pay, same benefits. But the extra $100 for a sixth day, Sure I am open to it. Shortest route possible, please, Mr. Central. lol

Life is too short. Take time for yourself, health, etc. Not interested in working that much. For me, it's not worth it!!

 

It's just tough seeing drivers in the 12% bracket and surviving. Sounds like your making smart decisions.

 

But you only pay the extra 10% on the amount over $44k. So if your taxable income is $60k your effective tax rate might be 18%.