I'm personally pro-traditional 401k. I use it to knock my taxable income into the next tax bracket.

>US Crypto Wash Sale Rule
>
>The IRS does have a wash sale rule. The US wash sale rule occurs when an individual investor sells or trades an asset at a loss and buys back a "substantially identical" asset within 30 days. If an investor does this - they cannot claim a capital loss.However, the US wash sale rule currently only applies to assets that are classified as securities - like stocks, bonds and other financial instruments. Cryptocurrency isn’t classified as this by the IRS, it’s classified as property.So right now, the IRS wash sale rule doesn’t apply to crypto. This said - the wash sale rule will apply to crypto related securities like stocks in exchanges.Before you rejoice - this is very likely to change in the near future. US congress are currently reviewing the tax treatment of crypto to tighten up loopholes like these.

However, you should keep the following in mind:

>The Economic Substance Doctrine
>
>The economic substance doctrine is a common law rule that unwinds actions taken by a taxpayer despite the taxpayer meeting all of the requirements of the IRC if the taxpayer cannot show the transaction has economic substance or a business purpose. The common law doctrine was codified in 2010 with the addition of IRC section 7701(o). However, the Code provision makes clear that the determination of whether the economic substance doctrine is relevant to a transaction shall be determined based on the judicial history of the common law rule and as if IRC section 7701(o) was never enacted.
>
>There are two prongs to an economic substance doctrine analysis. The first prong inquires as to whether the transaction being entered into changes in a meaningful way the taxpayer’s economic position (commonly referred to as the objective prong of the doctrine). The second prong inquires whether the taxpayer had a subjective non-tax purpose for entering into the transaction (commonly referred to as the subjective prong of the doctrine). At its core, the doctrine is trying to ensure a taxpayer entered into a transaction for a reason other than solely reducing tax liability and that its effect on the taxpayer includes something other than the mere tax effect.
>
>There is currently a Circuit split between the DC and Sixth Circuit and the Third and Fifth Circuit on when the economic substance doctrine should apply. The DC and Sixth Circuit limit the use of the economic substance doctrine to situations where the tax provisions in question are open to debate or the text of the tax provisions in question reference economic substance. The Third and Fifth Circuit have applied the doctrine broadly allowing a court to unwind transactions even when a taxpayer followed the clear and unambiguous guidelines laid out in the Code provisions so long as the individual falls short on either of the two prongs of the doctrine.
>
>IRC section 1211, the Code provision that allows for the harvesting of a tax loss, is short, clear, and does not reference the need for economic substance. Furthermore, our research did not find a single case applying the economic substance doctrine to IRC section 1211 (undoubtedly this is partially due to the wash sale rule). In almost all of the cases in which the economic substance doctrine has been applied elaborate schemes were devised by the individuals and corporations involved and the amount of money involved was substantial. Therefore, we believe it is highly unlikely that the IRS would apply the doctrine to an individual who harvests a tax loss from the crypto market correction. However, it is easy to envision scenarios where a nefarious taxpayer created an elaborate scheme to benefit from IRC section 1211. In that case, we would not be surprised to see the IRS take action under the economic substance doctrine.
>
>Conclusion
>
>An individual is clearly allowed to harvest a tax loss based on IRC section 1211. How the individual can redeploy the harvested losses back into the ecosystem is far from clear. Based on a strict interpretation of the Code, an individual could redeploy the harvested loss directly back into the same crypto asset. However, an individual invoking this strategy could have his/her loss unwound by the economic substance doctrine. If an individual wishes to be safe while harvesting his/her crypto loss, the individual could follow the guidance of the well-established wash sale rule. In between those two scenarios is a murky area of the tax law. The more nefarious and elaborate the scheme to harvest the tax loss, the more likely the IRS is to unwind the transaction.

​

US Crypto Wash Sale Rule - https://koinly.io/blog/crypto-tax-loss-harvesting/
The Economic Substance Doctrine - https://cryptoustaxattorneys.com/redeploying-crypto-harvested-losses-the-wash-sale-rules-and-the-economic-substance-doctrine/

The above is never financial or taxation advice.
Always do your own research!

Discount Code in Bio.

If you can afford to take the tax hit in the present then after tax and roth is for you. If taxes are kicking your ass then traditional pre tax is your jam. This country is in big trouble if you haven't noticed and God knows what taxes are gonna look like in 15-40 years when we're trying to retire. I'm playing the pay now play later by doing mostly roth and after tax. It would make me sick to give uncle sugar 20 ish percent of appreciated holdings so im eating it now. I can afford it based on how my income is taxed. Employer contributions are pretax. Spreading around to all 3 is likely best some might argue. You can use some portion of roth ira for first time home purchase

curious what you do if you’re open to sharing.

It can be as simple as putting money in a high yield savings account.

A couple of years ago I stopped drinking coffee. I started a weekly auto transfer for the $25 that I normally spent on coffee in a high yield savings account.

It literally can be that simple. https://ibb.co/mhg5SpV

Other than that, I have most my 401k in index and mutual funds.

A couple things:

1. since you're talking about them not filing since around 2016, you'll need to check the filing thresholds for each year and compare their income to those thresholds to determine if they should have been filing. (You can find these in the 1040 instructions for each year. For 2018-2021, they're probably fine if they only had SS and minimal other income because the standard deduction increased substantially in 2018 and has been increasing since then.
2. They may want to file 2020 and 2021 tax returns if they didn't get the stimulus checks. Most SS recipients did, though, so this may not be necessary.

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Yes, but a lot of plans match per payroll. If you max early there will be paychecks where you're contributing $0 so the match is the same and you're leaving money on the table. Aim to get the 2% for every paycheck in the year.

Roth or traditional: https://www.reddit.com/r/personalfinance/wiki/rothortraditional and https://www.madfientist.com/traditional-ira-vs-roth-ira/

Some math: https://reddit.com/r/personalfinance/comments/z5hb8v/_/ixw89x5/?context=1

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I think you're just paying a loyalty tax to your employer.

You may find these links helpful:

• Roth or Traditional
• General Information on Rollovers
• Retirement Accounts
• "How to handle $"

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$50 per month invested from 18 years old to 65 years old at 8% rate of return will turn into $310,000 at age 65.

Start with investing in the overall market like a S&P 500 fund.

VOO and VTI are both good overall stock market investments.

>but I'm debating whether I should put the full 22,500 in this year, OR just put in 6% to get the match?

I mean, at your salary level, assuming you're putting the money into a traditional 401k, you get 35% taken off by taxes. So you're putting in $22,500 into your 401k and only missing $14,625 from your paycheck.

And that's not accounting for any state income taxes.

I'd choose 401k over having a slightly bigger down payment.

Don't repurchase the same or substantially identical security in the Roth. If you do, you will trigger the wash sale and not be able to realize the losses.

Thank you for the reply- I'm not following though how I would miss on the match. They match 1/2 up to 4%, so if I contribute the max won't my employer have contributed an additional 2% of my salary of that number on top of what I contributed?

That is a downside, but not the "only" potential downside.

First things first, why do you think it's a total loss?

Secondly what are you spending the rest of it on?

This is important. If you need to, do. If there's additional waste that's up to you but that's also ok.

It definitely does, and you can effectively lose the losses if you repurchase the shares in an IRA (Roth or Traditional).

Haha. You won’t even be close to qualifying.

yes

34K is gross or net?

Lenders will only lend about 3x gross wages at current rates. $34K gross would be roughly $100K.

Unless you find a lender special, FHA requires about the lowest down payment at 3.5%.

Lenders will charge PMI/MIP if you don’t put 20% down.

Property taxes, homeowners insurance, PMI/MIP, and HOA fees will all affect your monthly mortgage payment and how much house you qualify for.

Any on-going debt payments will count against your available income.

Roommates will not be considered as qualified income unless you are purchasing a property jointly. If it is a multi-family unit, rent for a separate unit may be considered.

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O that makes too much sense! Thanks I suppose I'll confirm with HR that's the case at my shop

Rule of thumb of mortgage of no more then 3x your yearly salary. 300k is closed to 10x