How does a 401k effect your taxes at the end of the year?


Question:


Answers:
Let's say you earned $50,000 last year and put $5,000 into your 401k. For tax purposes, it is as if you only earned $45,000.
It lowers your taxable income, which means you will owe less taxes before you start taking off your deductions. 401k has saved me from have to pay "the man" a couple of times recently.
It lowers your taxable income, and quite possibly the amount of taxes you will pay on April 15

This article contents is post by this website user, HiAnswer.com doesn't promise its accuracy.



More Questions & Answers...
  • Im 13, can I hand out flyers with my friend (also 13)?
  • Are there banks that will work with people who are bankrupt and have bad credit?
  • How can I get 500 dollars in 2 weeks?
  • How can I get back my dept?
  • SERIOUS QUESTIOn! PLEASE HELP ME!?
  • How Can i Make $ ?
  • Do rich people have good spending habits?
  • If u have 100 Million dollars?
  • Im 13 years old..what jobs could i do..or help out somewhere?x [for extra money..]--[Im in the uk]?
  • Once approved for unemployment, how many checks do you get for unemployment?
  • Copyright 2006-2007 HiAnswer.com All Rights Reserved.