General Bonaparte’s Reviews > Tax Planning To and Through Early Retirement > Status Update
General Bonaparte
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Traditional vs Roth contributions: the graduated tax bracket creates a rate arbitrage opportunity, where traditional contributions are deducted at the taxpayer top marginal rate, but distributions are tax progressively, being first absorbed by the standard deduction and senior deduction, then being progressively tax at 10%, 12%, 22%, etc.
— Jul 13, 2026 07:53PM
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General Bonaparte’s Previous Updates
General Bonaparte
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The payroll/self-employed tax is truly noxious and considerably more difficult to reduce than the income tax. Seldom does a day pass without it foiling some tax avoidance scheme that I’ve devised.
— Jul 20, 2026 05:05PM
The progressive tax system creates a structural arbitrage opportunity: traditional contributions reduce income at the taxpayer’s highest marginal rate, whereas retirement withdrawals are taxed from the bottom up—first by deductions, then the lowest tax brackets, and only later at higher marginal rates.