@audjle10 wrote:
Sorry, I understand everything you are saying but I am already clear on all those points. What I need to know is what impact contributing 15% to traditional 401K as opposed to 10% will have on my current withholding - and ultimately amount refunded or owed - if I do not change my W4. I should not have introduced anything about the Roth; it only serves to confuse things so I apologize.
As I said. Less taxable income will result in a lower tax and need less withholding. How much is not possible to say without knowing everything on your tax return. Your taxable income is the total of all income after deductions. How much tax depends on your tax bracket and margional tax rate.
I suggest that you create a dummy tax return exactally the same as your 2020 tax return and then change your W-2 box 1 by the amount that the 5% contribution change would represent (the current contribution amount will be in box 12, code D. If that is 10% then divide it in half which would be 5% and subtract that amount form box 1).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
