What the heck does “pre-tax” really mean? | blooom

To your benefit, the IRS is now only able to tax you on $45,000, NOT your $50,000 salary. This is because your 401k contribution is taken from your paycheck pre-tax. (Note: Pre-tax does not mean you avoid any FICA taxes. You may owe Social Security and Medicare tax, for example. FICA taxes are based on gross pay.)

To Now Illustrate The Benefit to You, Here is How The Math Works:

$50,000 taxed at 20% = 10,000 in Federal taxes

vs

$45,000 taxed at 20% = $9,000 in Federal taxes

So not only have you socked away badly needed...

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Website: https://blog.blooom.com

Related topics : 401k pre tax medicare / federal taxes medicare social security / how to pay social security and medicare taxes / social security medicare tax / 401k avoid medicare tax

How to Read Your Paycheck: Understanding Your Pay Stub ...

How to Read Your Paycheck: Understanding Your Pay Stub

How to Read Your Paycheck: Understanding Your Pay Stub

November 04, 2016

by Lucy Lazarony

It might be easy to have your paychecks directly deposited into your bank account , but it's still crucial to recognize what all those numbers and abbreviations on your pay stubs mean. If you don't review your paycheck, you might be accidentally losing...

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Website: https://www.credit.com

Dadeschools.net

Can I be reimbursed for in-county travel expenses incurred several years ago?

Payroll

My pay rate is not correct. Am I getting paid for my Master's degree? What supplements am I receiving?

For all questions regarding your salary or pay rate, please point your browser to salary.dadeschools.net. There you will find an Electronic Salary Inquiry Form which you can submit. This is the fastest...

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Website: http://payroll.dadeschools.net

2017 IRS Federal Income Tax Brackets Breakdown Example ...

In a continued attempt to better explain the 2017 federal income tax brackets, here is a graphical breakdown of a simple scenario for a married filing joint couple with 1 dependent. See also my previous examples for a single filer with no dependents and married filing joint with no dependents . I will try to explain the differences in terms such as gross income, taxable income, marginal tax...

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Website: http://www.mymoneyblog.com

Related topics : social security and medicare tax rate / federal taxes medicare social security / social security medicare payroll tax / medicare tax rate / how to pay social security and medicare taxes

401k, Traditional IRA and Roth IRA Savings Not The Same

$81,600 is not too shabby, but it's not quite $100,000.

Okay, You Have My Attention, Now What

Even though the point I'm making is fairly obvious, many of us don't think about the true value of our nest egg when we just glance at our 401k and IRA statements every quarter. If you are actively planning for your retirement, I strongly suggest doing a similar calculation and see if you are still on...

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Date: 2018-03-24 12:01:45
Website: http://moneyning.com

Related topics : health insurance plans medicare / advantage plan health insurance / medical savings account medicare / 401k pre tax medicare / medicare advantage health insurance tax

How Much Can I Contribute To My Self-Employed 401(k) Plan?

The IRS says you can contribute up to $54,000 in your tax-deferred�Self-Employed 401(k)�for 2017, a $1,000 increase from 2016. If you're at least age 50, then you can make an additional $6,000 catch-up contribution, which increases your limit to $60,000.�That's $18,000 or $24,000 (age 50+) for the employee contribution and up to $36,000 for the employer contribution for a total contribution...

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Website: https://www.financialsamurai.com

Related topics : social security medicare tax forms / how to pay social security and medicare taxes / social security and medicare tax rate / social security medicare tax / 401k deduction medicare tax