Yes, the reasoning is correct, except on 2 points:
1. As an employee, you can contribute to your 401(k) plan up to $22,500 in 2023, plus a catch-up contribution of $7,500 if you are over 50.
2. FUTA is $42, not $420 (6% of $7,000).
The result would be your personal taxable income, not your tax liability.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
