401K tax break and my paycheck?
Thursday, October 11th, 2007
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
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
