As you begin a new job, or if you are a longer-term employee who is just starting to make contributions to a 401(k) plan, you are confronted with a question: How does a contribution to the 401(k) plan impact the final take home pay on my paycheck? Believe it or not, you could actually increase your bottom line assets by reducing your income through a 401(k) contribution.
Let’s work through an example so that we can more completely understand what happens.
Your New Job
So, you’ve started a new job, with an annual pay of $30,000. We won’t go into …Read More