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05-06-2011, 05:39 PM
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401K tax question
I just upped my 401K contributions per paycheck and I noticed my paycheck went up. Is that because I lowered my taxable income? I'm concerned this will really affect my taxes at the end of the year. I always new it would lower my taxable income but never figured it would raise my paychecks. is there anything i should be worried about?
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05-06-2011, 06:38 PM
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Did you get a raise?
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05-06-2011, 07:13 PM
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Yes, because you increased your 401K, you paychecks are higher because the withholding is less on less taxable income. Very good move in my opinion!
Here is a paycheck calculator that should help confirm what you are seeing on your paystub.
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05-06-2011, 09:39 PM
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I was thinking it'd have to be a W-2 election.
I'd use the IRS calculator and fix my withholdings anyways: 2011 Withholding Calculator An increase in 401k contribution should lower your paycheck. What did it say on your pay stub? Compare this one with the one before it. (overtime? bonus? different salary rate? etc.)
__________________
-JPG `It is more blessed to give than to receive.' Acts 20:35b
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05-07-2011, 07:31 AM
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I am putting in $500 a paycheck and it went up about $130. My total before anything was taken out didnt change at all. It definitely wasnt an increase in pay. Should this happen or should i contact my payroll department at my work? If this is correct could it drastically affect my tax return?
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