How much to invest in a 403b retirement plan to save in taxes?

[PLP]

Hi! My employer is matching my contribution to a new 403b up to a 7 percent and giving me 2 percent (16 percent max) I need to decide if this is going to help me reduce taxes and what will be the best amount to get the maximum benefit in tax reduction. I earn 75K a year. And I don't have dependants or any other way to reduce taxes.

[SweetieJean]

What is the max percent the company will allow you to contribute?

[PLP]

I could put as much as the limit but my company will only match up to 7 percent. So if I put the max it will be 7 percent (me) plus 7 (company) plus 2 (company) total of 16 percent

[SweetieJean]

If you contribute 7%, then your wages are reduced by that 7%, and the remaining 93% is Federally taxable for the year. State may be different.

Even if there is no company match, your contribution is not taxed when you make it, and your earnings grow  tax-deferred.

https://www.irs.gov/retirement-plans/choosing-a-retirement-plan-403b-tax-sheltered-annuity-plan

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-403b-contribution-l...

https://turbotax.intuit.com/tax-tools/tax-tips/Retirement/-Are-403-b--Contributions-Tax-Deductible-/...

[SweetieJean]

75,000 x .07 x .25 (Federal tax rate) = $1312 tax savings
<a rel="nofollow" target="_blank" href="http://fairmark.com/general-taxation/reference-room/2017-tax-rate-schedules/">http://fairmark.com/ge...>

[Critter]

And remember ... due to the company match your $ double the minute you make the contribution ... there is nowhere else that your money will double in seconds ... put in as much as you can afford to do.  If you thing the 7% is too much then start with half that & increase it as you can afford to do so.