401K Deferment
I am wondering if anyone is using income sources other than paycheck for daily/monthly expenses. I am considering using more of my brokerage income to fund my lifestyle just so I can get closer to maxing out 401k for tax deferment purposes.
This seems like a sound plan but I'm curious if I'm missing something.
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That's a valid strategy. Also turn off DRIP to prevent in-fund capital gains and dividend distributions in your taxable account from being automatically reinvested then use that income to offset living expenses. You are being taxed on that income anyway whether you reinvest it or not.
That's what I was figuring. However, my income comes from options while also I still invest to hold in certain ETFs so I don't think turning off DRIP would be the best idea.