gear02

So I think I'm set for this year, but I'm very worried about getting taxed up the wazoo. I stopped contributing to my 401k sometime this winter because I needed the money. If it weren't for certain student loan deductions, I would have owed about $400 in taxes.

If you read my previous thread on Bschool, you will know then that I'm planning to go to BSchool. Thus, I want to start saving up a lot of money, which means I'm probably not going to contribute to my 401k. If I do that, however, I think I'm going to have a much larger tax payment. What should I do?

My income is around 50k. I would be grateful for any help.

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zippyjuan

Is your 401K with your employer and can you have funds automatically deducted from your paycheck for it? If you have it taken out every week before you get paid, you won't even notice the money being gone. I do not know how borrowing from your 401K works- perhaps someone else can help, but perhaps you can put money in that and then loan some back to yourself for school. There are restrictions on what you can borrow for and time periods for repayment, but that could help you on both the 410K and school problem. Look also at ways you can spend less money like carrying less cash and only using credit/debit cards for emergencies.

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