Tax FAQ
 

Pre- Or Post- Tax 401k Contribution...?

Question by Matt from MyMonkeywrench.com | Posted in Investing

At my organization, I have the option of pre- or post- tax contribution to my 401k. What are the advantages of both, and considerations I need to take into account to govern which is right for me, and why... basic (I have only had "Intro to Finance" as an undergrad :) ).

Thanks in development!

Answer: For a accustomed 401(k), the contributions you make are tax-exempt (meaning that they're taken out prior to your taxes being premeditated), and the investment returns are allowed to grow tax free. You pay taxes on the money when you take the small change out of the plan. This means that you're reducing your current taxable income but possibly increasing it at retirement.

For a Roth 401(k), your contributions are taxed, but the wealth is allowed to grow tax-free, and you won't have
 
 

Change Tax Withholding To Increase 401k Contribution?

Question by Sid C | Posted in United States

Hello,
I'd like to learn how to swop my tax withholding so that I can increase my 401k contribution without seeing a change in my net income.

Thanks, in progress, for your help.

Answer: Your net return is the amount of $ you make minus 401k minus taxes owed.

If you change your withholding, your tax owed doesn't difference. It just may not get withheld from your check. You will either cut into your tax return, or end up owing tax at the end of the year.

If you want to extend your net income by reducing your tax lability, the only way to do this is to write your senators and congresspeople and tell them to cut your taxes!

Related Topics:

Road Tax On Line
Free Federal Tax Forms
Calculation Capital Gains Tax

 
 

Employer Tax Deduction On A 401k Contribution?

Question by Michael | Posted in United States

What percent tax reasoning does an employer get for contributing money to an employees 401k? Thanks.
Is there a percent go that most companies fall into? Or a graph or table that I can look at to try and see what deduction the employer would get?

Answer: If your tax combine is 15% and you put $1,000 in as a match for your employee, you would save $150 in taxes.

Helen, EA in PA

Related Topics:

Delhi Value Added Tax
New Hanover County Tax Office
Cass Tax

 
 

Does The Employer Match Count Towards The 401K Maximum Pre-tax Contribution Per Year?

Question by Nick G | Posted in Personal Finance


Answer: No, it does not.

Related Topics:

Boston City Tax
New Hanover Nc Tax
Cass County Tax

 
 

If I Make A Lump-sum Contribution To My 401K, Can I Deduct The Amount From My Taxable Income (2007 Return)?

Question by Kenneth B | Posted in United States

I basically have not done my pre-tax 401k contributions this year(out of my paycheck) and now fancy to do a lump sum contirbution(before the end of the year) ... can I still get the tax benifits ??? THANKS !!!

Answer: If your organization's plan allows you to make lump-sum contributions, yes you could deduct it unless they show it on your W-2 as already deducted. But most plans justified work on payroll deductions, not lump sum contributions. Ask your HR department or your employer.

Related Topics:

New Jersey Tax Lien
Henry County Tax Assessor
Michigan Tax Withholding

 

Why You Should Lower Your 401K Investment | Creative Retirement ...

by admin

Most exclusive commerce experts will acquaint someone with something you that, when it comes to your 401K, at the very least, you should spend up to your comrades’s link. The emotionally upset I have is when they determine you that you should max out your 401K investment if you have the funds.   For exemplar, if  your public limited company matched the first 6% of your paycheck, you’d set your contribution to 6%.   Whether or not you max out your 401K is a complex resolution that should be tailored to your own critical finances, not some blanket assumptions by investing pundits. The Funds in Your 401K Suck. I have no gripes with this action and in in point of fact forward slight more than my throng’s go with at my current job.   The lowest outlay loot cannot be tracked online (it’s a reclusive ticker) and the expense proportion is more than bent over of a comparable first finger scratch at Vanguard. My 401K is evil....

Read more...
© 2011 Tax FAQ