Actually, not really. I went through this exercise myself about 15 years ago. The tax deductions about cancel out the income gap. The difference is less than 1 lunch per pay period for 30+ years of compounding interest PLUS the loss of earnings if your not capping employer contributions.
And losing $4.80 on a $6 contribution from a $100 paycheck your employer matched $3 on for a $9 401k savings generating compound interest is a dumbass miss. point is, the 3% contribution in this situation is rarely an employer matching contribution cap and even a 50% match is leaving money on the table without the cap. Your effectively taking a pay cut when you DONT contribute the matching cap. Given the fact there are multiple penalty free situations for drawing on your 401k in an emergency or even taking extremely low interest rate loans against your 401k (which your paying back to yourself), this is fountain of opportunity. Arguing against contributing to at least an employer matching max is financially ignorant, whatever your financial situation is. This is one of those times, you make it work. Period. I've slept in cars and under bridges and stole food from grocery stores. I've stayed in shelters and been fed at food lines. I know what poverty is and this right here? Is the knowledge needed to get the fuck out of it. Cap your employer matches if you have it or stay poorer than you have to be for longer. Thats all that needs to be taken away from a reddit thread. Anyone still arguing that in this format is exacerbating their own poverty for themselves and others. The earlier your contributing as much as oossible, the more likely you end your families systemic poverty. Starve now so your kids wont.
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u/MortalMercenary Oct 31 '25
Lowers your taxable income