The last couple years I'm seeing that I made 43 and 44K before taxes, and it appears that the tax rates (per mr. google) are:
12%: $10,276 – $41,775
22%: $41,776 – $89,075
It seems like being on the borderline after doing the math that at least in the short term I'd be saving thousands of dollars if I just contributed enough extra to a pre-tax 401K to bring myself below that 41,775 threshold. Does it really work that way though?? Just wanted to make sure.
I know if my income increases in future it would likely cost me more in taxes when cashing out, but to be honest I'm more interested in getting more cash up front to invest manually in the stock market right now anyways. Plus the compound interest on the pre-tax seems like it'd make it a win/win?
Submitted July 21, 2022 at 12:17AM by PatternAgainstUsers https://ift.tt/anIklKq
