What is the best way to reduce my taxable income

[ricbuenrostro]

My question is what type of account can reduce my taxable income in my w2, Traditional or Roth?

Thanks in advance.

Ricardo

 

[Mcqlives]

Traditional. Roth is after you pay taxes on it. Also consider FSA's as well if you are looking to hit that next lower tax bracket. Crunch the numbers before you make any choices though...and you may have to run numbers every year depending on all the factors.

I am way too solidly in my tax bracket to drop one (until I retire):smile:.

 

[evilanne]

FSAFEDS is good but you have to use it within specified time. HSA with high deductible health insurance (if you put max allowable for self or family) is better at tax savings in long run but you can't do anything until open season.