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April 15, 2023
Question

I owe 3k in federal tax. In general, will contributing more to my 401k reduce by taxable income enough to greatly reduce that in the future?

  • April 15, 2023
  • 1 reply
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1 reply

April 15, 2023

Maybe, "greatly" is the operative word here.  Any 401k contributions will reduce your taxable income today, but if you are lucky enough to accumulate wealth during your working year, you may have to pay  taxes later.  

ckm705Author
April 15, 2023

Thank you for the response.