Originally Posted by
ZapBrannigan
Aren’t bonuses taxed at a higher rate though? So if we could defer the taxes by putting the retro into a 401K theoretically it would benefit us more than the tax benefit from our paycheck 401K contributions?
Expect it to be taxed for Fed around 25%. Then you’d owe state taxes if applicable. Pretty sure no Medicare or SS will be withdrawn and they won’t pull any out to fund your 401k (least that’s what I remember from 2016)