I have a 401K at work, mainly for an easy way to save...?

Question

and for the fact that no tax is taken from the amount I invest.

My question to you is this-IF I have 100 dollars a month taken from my paycheck and invested in my 401K, how much less money will be taken out of my paycheck for taxes?

What about if I saved $200 or $300?

As an fyi, my gross pay every 2 weeks is right at 1300 dollars.

Thank you for your help!

Answer 1

I don't know if your marginal rate is 15% or 28%. For each additional $100 taken from your paycheck to be put into a 401k, you save either $15 or $28 in federal income tax plus whatever your state and city income tax rate is (6% in Missouri, or $6 per $100) FICA and Medicare are not affected. You may also save on percentage-based employer deductions, e.g., healthcare.

So you get to invest $100 but only suffer a $79 or $66 reduction in your current-year net income, or less depending on your other deductions.

Many years later, when you withdraw your 401k money, it will be taxed at the then-prevailing rates.

Answer 2

The more you put in 401k, the more tax advantage as long you can live with less income
for every 100 take out from your paycheck, you save about 20 on taxes. You are really wise thinking ahead. I recommend you learn how to invest properly too. At the age of 32, my 401k+Roth IRA combined is 74000, and my taxable account is 30000.
FIRST, check this book out, TRADERS ALMANAC by JEFF HIRSCH
I can refer you some amazing sites. and learn on your own
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 74,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 3

perhaps you can try forex. which is also excellent way for you to invest.

The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.

try forex from here:

http://www.bernanke.cn/easy-forex/

Good Luck && Wish you make a fortune!

Answer 4

your savings would be $850/yr
using this " What are your tax savings if you contribute to a 401k?" calculator
http://www.quicken.com/cms/viewers/qanda/retirement/800