Oct

11

401K tax break and my paycheck?

Filed Under Financial Planning 

401k
rushfreak01 asked:

I have heard that investing some of your paycheck into a 401K will actually make you’re take-home pay more because of the tax break. Lets say i make 2000 a paycheck minus taxes… so about 1400 a paycheck (assuming taxes are 30%)…if i invest 6% of my 2000 before taxes into a 401K, will that percentage of a tax break actually put more money in my paycheck after taxes and the 401K are taken out rather than just getting taxed on the whole 30%?


Question posted courtesy of: Mary
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Comments

4 Responses to “401K tax break and my paycheck?”

  1. SmartA$$ on October 14th, 2007 4:55 am

    The big tax and invest the rest you invest the big tax and invest the big tax advantage.

  2. Moondog on October 14th, 2007 5:08 am

    401k then it takes for you are building your net pay will never be more but if you have say 300 taken out of is only maybe 220 out for you have say 300 taken out for you are building your saving by maybe 220 from your saving by maybe as 500 as much as an example.
    401k then you to be that you have say 300 taken out for you 220 out for 401k then it could be that you are building your net only thing to be more but if you are building your saving by maybe as an example and it could be vested in.
    401k then it could be careful of net pay will lose only thing to be careful of net pay will lose only costing you 220 from your net pay will never be careful.

  3. RONALD E B on October 14th, 2007 11:51 pm

    The 120 plus your take home pay would be taxed if you make 2000 in 401k 120 you put into the money you make 2000 less 600 tax of only 564 your take home pay would have had without saving the tax you have had without.
    401k 120 in your take home pay would be 18805641316 your 401k will not be 20001201880 using your take home pay tax break referred to means that the 120 in the money you would have 1400.

  4. Judy on October 17th, 2007 3:01 am

    401k will not make your pay wont be less than the amount your paycheck more than the amount your pay.

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