What is the impact on my refund/amount owed at tax time, if I move a portion of my 401K contribution from post tax to pre tax? For example, using round numbers:
I contribute 15% to my 401k. 10% pre-tax, 5% post-tax (or Roth); $100,000 annual salary.
I have my withholdings set up such that my tax return bottom line is roughly $0.
If I move that 5% post-tax to pretax, I know my present day tax liability will go down by a percentage of that $5,000. But what will be the impact on the amount owed/refunded at tax time, assuming no other changes? Since my withholdings will also decrease, I am assuming - theoretically, at least - there should be no significant difference.
