I believe that it does. If you are making $35,000 and manage to sock away $11,000 into a 401(k), so that your taxable income is only $24,000, this may very well drop you into a lower tax bracket (don't know the tax schedule off the top of my head).JAFO is correct. When your income goes from a lower bracket to a higher bracket, only the portion of income above the income limit of the lower bracket is taxed at the higher rate, not the entire income.IF
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra