401k & income tax question

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401k & income tax question

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tommyjeans

posts: 22

Feb 15, 2008 2:33 PM ET Quote Report Abuse

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hi everyone,
i`m hoping someone can help me with this question.

lets say I am making 50k a year and i decide to max my 401(k) contribution at 15%, so thats minus $7500. My taxable income would be $42500 correct?

i also have a side business, if i bring in 7500 a year from it, does that mean my current taxable income would be an even 50k or 57500 at the end of the year?

thanks for any help!

seomarketgoal

posts: 3

Oct 09, 2012 4:01 AM ET Quote Report Abuse

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There are two types of contribution towards 401k plan. One is pre tax contribution while another is after- tax contribution. The sum of these two is known as the total contribution limits. You should take the help of your 401k advisor.

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401k Contribution Limits

jojohuahua

posts: 2

Nov 16, 2012 2:45 AM ET Quote Report Abuse

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gw2 gold

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