I’m curious if there are any obvious tax avoidance Tricks or approaches I’m missing out on in how I save and invest. This isn’t about how much money saved or investment strategies but tricks like the backdoor Roth I might be missing. I max out 401k and mega backdoor Roth 6k to backdoor Roth IRA Max out espp and sell immediately 5k for dependent care fsa No HSA or HDHP. I just haven’t wanted to bother but I know that’s a thing. I use fidelity charitable to donate appreciated stock to avoid capital gains. Any tricks I’m missing out on?
Is your company hiring?!
Yes! We are always hiring software engineers.
HSA is a triple tax advantaged account. Max it out. The next step is real estate and depreciation (a.k.a the Trump method)
I don’t understand the triple advantage of an HSA. Can you say more?
Money is not taxed at the time of contributing, Gains are not taxed, Money is not taxed when withdrawing... E.g. 401k is just single tax advantage account.. Brokerage account it's no tax advantage account..
How does the donation works? Do you donate instead of paying taxes (no gain for you) or you can save money on taxes?
If you donate cash you get a deduction for the donation. If you donate appreciated stock you get the same deduction and avoid realizing the capital gains on that appreciation. So if you are going to make a donation, stock is better than cash. That being said, donating stock is logistically annoying. Fidelity charitable is a “donor advised fund” that you donate stock to, the make grants to charities from there.
Thanks, I did some research. Basically if you want to donate it's much more convenient than cash , but if you don't want to donate in the first place it's still money going out
What is fidelity charitable??
If you are willing to take some risk, qualified dividend have better tax rates than bank interest. Long term investments better tax rate than short term.
You need to start doing real estate