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Level 1
posted Apr 15, 2023 12:06:52 PM

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?

0 2 469
2 Replies
Expert Alumni
Apr 15, 2023 12:38:36 PM

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.  

Level 1
Apr 15, 2023 12:44:02 PM

Thank you for the response.