Rob Burnette, financial advisor and registered tax preparer at Outlook Financial Center stated that the most common scenario where this question comes into play is when the child has a part-time job while in school.
Rob Burnette is the CEO of Outlook Financial Center in Troy. He is recommending that federal employees get their resumes ready.
At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Rob Burnette, investment advisor and professional tax preparer at Outlook Financial Center.
"For higher-earning employees, using the traditional 401(k) will give an immediate tax benefit of lowering taxable income, while others will benefit from paying taxes today at lower rates and allowing the investments to grow tax-free," said Rob Burnette, investment advisor representative at Outlook Financial Center in Troy, Ohio, in an email.
Even if you use tax preparation software, be vigilant, says Rob Burnette, an investment advisor and tax preparer at Outlook Financial Center in Troy, Ohio.
“What can be pared back without completely blowing up your lifestyle?” asks Lori Gross, a financial advisor at Outlook Financial Center in Troy, Ohio.