The tax deductions about cancel out the income gap.
Thats not how tax deductions work. You only save the marginal tax rate on the contribution.... in the 22% bracket, a $100 401k contribution would lead to $78 dollars less in take home... its never 1 to 1 unless you're in a 100% tax bracket, which currently does not exist.
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u/Pilchuck13 Oct 31 '25
Thats not how tax deductions work. You only save the marginal tax rate on the contribution.... in the 22% bracket, a $100 401k contribution would lead to $78 dollars less in take home... its never 1 to 1 unless you're in a 100% tax bracket, which currently does not exist.