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Currently, my paycheck is about $1850(bi weekly check).

I am putting $500 into saving automatically w/ my federal credit union bank.

Our company always had 401K but I never got into it..

Shall I do it(say about $200 a paycheck?)

We can't tell you what you should do. However, if your company has a matching contribution program, you are passing up a guaranteed return on your investment.

HOw much would that reduce my real pay check?

From 1850... to 1650? or bit higher?

A $200 contribution to a 401(k) should reduce your federal withholding tax (and possibly your state withholding tax) by about 10%. So, less than $200 will be taken out of your "take-home" pay.

or shall I take more out for 401k? . would i get less taxed on?

Please help me

The more you contribute, the less you pay tax on (and the less you have in your pocket each payday). In exchange, you are getting tax-deferred growth for your future retirement.

A general rule of thumb is that you should contribute to your 401(k) up to the maximum company match, then fund a Roth IRA (if you qualify), then return to funding the 401(k) up to the maximum you feel comfortable with. Remember, this is only a general rule of thumb, there are many circumstances where this would not be the best course of action.

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