I guess this is more of a tax implication question. My wife and I both make comparable salaries and we each contribute the maximum per year into our 401k's and we usually max out around October. We also usually each get profit sharing from our respective companies each year. The profit sharing in most instances is close to the maximum amount that can be contributed annually to a 401k. So my question is, is there any advantage to contributing 100% of our profit sharing to our 401k which would max us out earlier in the year so the remainder of paychecks would be higher each week. I thought I remembered hearing that taxes were higher on profit sharing/bonuses as compared to the taxes on your salary. Just wondering if there is any benefit to doing this?
submitted by /u/CircuitMan29
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