Young Attending - Minimizing Tax Burden and Savings Advice

[zeke396]

I'm a young unmarried attending in Anesthesiology without kids just starting out at a large academic center in a state with income tax.  I'm paid as an employee, salary ~$340,000 including call pay. I plan to live without extravagance and within my means.   My only debt is my student loans and current mortgage.  I'm looking to minimize my federal and state tax burden (since I don't have a family) and to maximize my savings potential and would love advice for any ideas I might be missing.  Here's what I'm doing--

1) Receiving annual 9% employer income contribution up to an annual base salary of $240k into a 401(a) = $21,600.  This is provided in addition to salary and is contributed by the employer.

2) Max employee contribution into a 403b and also a 457 account, each max $18k annual contribution for a total of $36k pre-tax.

3) Contributing max into my HSA for my HDHP, $3400 annually pretax.

4) Own my home, so claiming mortgage interest on income taxes.

5) I already have contributed 4 years of payments into Public Service Loan Forgiveness, I ran the numbers doing a quick two-year pay down vs PSLF and PSLF came out on top for me.  I think (hope?) the program will remain solvent.  So, I plan to do IBR (REPAYE program) over the next 6 years and hope the remainder will be forgiven at that time.

6) Backdoor Roth IRA, max $5500 annual after tax contributions.

7) Other savings into a taxable investment account - my goal is to save at around $100k annually.

 

Any other suggestions?  Thanks!

 

[adventure]

zeke396 wrote:

Any other suggestions?  Thanks!

Click to expand...

If you are itemizing, do some google searches for other common itemized deductions. I'll note that one is to donate and give. There are lots of options here and DAF's, etc. But consider giving.

[StarTrekDoc]

First world problem --- what to do with all those funds to keep away from Uncle Sam and States Treasuries.

1.  Can you plow in more personal $$$ into the 401(a) aside from the employer contribution?   54k is the max under that code.   Even if you have to do this post tax, you maybe able to do distributions and roll them into Roth IRA (If old academic institution---maybe a viable route)

2.  Max out your home mortgage to 80% equity for tax deductions 30 yr to max interest deductions

3.  If charitable givings --  setup a charitable Donor Advised Fund (DAFs that Adventure mentioned)  to maximize tax efficiency.

4.  If you're a mixed, balanced type investor -- taxable account should be heavy in the Muni Bonds to minimize State+Fed Tax

 

[hightower]

Agree if you can contribute your own money into the 401a on a pre-tax basis, that would be the best way to immediately reduce your taxable income.  Otherwise, do what you're already doing plus some charitable donations.  Give money to your college(s) each year and maybe one or two other organizations.  I donate to the National Park Service if you're looking for ideas.  Also, donations to goodwill or salvation army can add up as well (old clothes, household items).  Make sure you get a receipt when you drop something off and save it with your tax documents.