Tax Liability
01-27-2024 | 06:08 PM
#83
Gets Weekends Off
Joined: Oct 2006
Posts: 3,696
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Added up what my gross should be for Jan credit at new rates plus RB and without adding a thing to the Bonus Schwab contribution vs maxing out my portion for the year, I should save almost $10k in Fed taxes. So I’m doing that…I’ll still have overpaid for the year but it won’t be by as much if I had left everything alone.
01-27-2024 | 09:52 PM
#84
Gets Weekends Off
Joined: Apr 2013
Posts: 4,590
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I did some cyphering and basically decided it isn't worth changing and left it alone. So max cash this check and left my 401k contribution where it was. Yeah, I could front load and maybe get a little less withheld this check, but in the end it's all coming out in the wash and I would rather overpay a little now and adjust later than do the opposite.
01-28-2024 | 04:05 AM
#85
Gets Weekends Off
Joined: Jun 2010
Posts: 7,578
Likes: 288
From: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
01-28-2024 | 04:48 AM
#86
Gets Weekends Off
Joined: Oct 2006
Posts: 3,696
Likes: 325
I did some cyphering and basically decided it isn't worth changing and left it alone. So max cash this check and left my 401k contribution where it was. Yeah, I could front load and maybe get a little less withheld this check, but in the end it's all coming out in the wash and I would rather overpay a little now and adjust later than do the opposite.
01-28-2024 | 05:15 AM
#87
weekends off? Nope...
Joined: Apr 2014
Posts: 2,435
Likes: 168
01-28-2024 | 08:11 AM
#88
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Joined: Sep 2016
Posts: 203
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The difference was just under $5,200 in tax withholding. I'd rather front load my 401k, and take the tax withholding. At least that way I have an extra $5200 sitting in the market instead of a tax free loan to the government. However you decide to do it though, the taxes all the up the same at the end of the year.
01-28-2024 | 08:24 AM
#89
weekends off? Nope...
Joined: Apr 2014
Posts: 2,435
Likes: 168
I calculated two scenarios. The first was calculating exactly what percent personal contribution I would need to get $23k in the Feb 20 paycheck. Then I did it without any personal contribution. Then ran the calculations for taxes of each paycheck.
The difference was just under $5,200 in tax withholding. I'd rather front load my 401k, and take the tax withholding. At least that way I have an extra $5200 sitting in the market instead of a tax free loan to the government. However you decide to do it though, the taxes all the up the same at the end of the year.
The difference was just under $5,200 in tax withholding. I'd rather front load my 401k, and take the tax withholding. At least that way I have an extra $5200 sitting in the market instead of a tax free loan to the government. However you decide to do it though, the taxes all the up the same at the end of the year.
01-28-2024 | 11:58 AM
#90
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Joined: Mar 2014
Posts: 936
Likes: 128
The only downside to only 22% being withheld is planning ahead enough to pay the 10-15% difference on your retro when you file. Set aside that amount to invest for a year, then take it out in April 2025. Withholding is YOUR MONEY prepaying your taxes. Why pay early, or worse, get a refund?
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