Categories
Uncategorized

Can I retire on $300000?

No. You might be able to. However, it is not the case for everyone.

In retirement, if you are paying taxes on your taxable income ($180,000 for 2012, $190,000 for 2013, $200,000 for 2014 and $225,000 for 2015), and you qualify for a “catch-up” (or “catch up”) credit, you’ll save over $14,000 a year. The catch-up credit is for income up to $90,000, so it’s even more important to use it for all income. This is true even if you’re at work, since your employer contributions don’t count against the cap.

You can make a claim for the catch-up credit in 2014.

There are also various state tax credits. Some states allow you to deduct up to $1,000 in state taxes, and others let you make up to $1,000 per eligible child.


Is there a special rule for my state?

Yes. However, as with all credits, you will only get the credits for your first $2,000 of qualified costs, so you’ll only get credits for your first $2,000 of qualified expenses. A qualified cost means one of two things: (1) a tax deduction, or (2) a deduction that costs more than $2,000. If you can’t figure out which one you’ll qualify for, we suggest the deduction as it helps you avoid paying more in taxes and will reduce your out-of-pocket costs.

What are my options if I’m too old, too poor, or I don’t care about taxes?

Check with your employer-sponsored retirement plan for options. If you’re older and your employer doesn’t offer a retirement plan that matches your tax bracket, take advantage of the age-based retirement plan that is available to you.

If you’re too poor to qualify for a Roth IRA, then you could consider taking advantage of your workplace 401(k). If you don’t have a workplace match, and you can get help from your employer, look into IRA-to-IRAs. You could also try a 401(k) in a small business, but you may need to provide your employer with a copy of an employment contract and a letter from the IRS.

The same goes if you don’t care about taxes. If you live in a small town or don’t want to relocate, maybe you can find