Announcement

Collapse
No announcement yet.

How To Use Bonus from Work? Put in 401k? Or Savings?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Originally posted by lootpacman View Post

    I like this suggestion. One thing I noticed though is that if I put $5K to the 401K. The rest of the money will be taxed at $30+% upfront. Leaving me with $8370 after $5K get deducted. And then assuming tax is usually around 30-40%, that leaves me with $5K post tax.

    So it looks like I can make two contributions, 401K and EF (pay off CC and contribute rest to EF), the rest will go to taxes, which is still not bad overall. kork13 above mentioned that companies just over tax, but I won't know what I'm getting back until I file next year's taxes.
    What about something like: contributing to the 401K and EF when you receive the bonus, and making a commitment to yourself to use any tax refund you get to start a house fund?

    Comment


    • #17
      Originally posted by scfr View Post

      What about something like: contributing to the 401K and EF when you receive the bonus, and making a commitment to yourself to use any tax refund you get to start a house fund?
      scfr I will do just that. Thanks will post updates once this gets paid out within the next few weeks.

      Comment

      Working...
      X