My employer offers a $.50 for every dollar match up to the first $1,110 I put in my 401k each year. If I use the match, I’ll have $1,665 and pay 22% in taxes (12% income + 10% early withdraw) to get $1,298.70. If I just simply did not use the match, I’d pay 12% income tax on that $1,110 to get $976.80. This is essentially growing the $976.80 I would’ve normally gotten 33% to $1,298.70? Am I understanding this correctly? I’m 21, and would like to use the employer match only if it would still be beneficial if I decide to withdraw early, so I’m trying to figure out if using your employer match and taking out is more efficient than not using it at all. Please let me know if I’m understanding the math correctly! Thanks for your time :)
Submitted October 30, 2019 at 09:55PM by yaesnoah https://ift.tt/2pvKxhQ
