Last year, I got a bonus of $7500 and allocated the entire thing to my 401k. However, they still took out $573.75 for Social Security. So my question is whether the $7500 all counts towards my $18,000 limit, or if only the $6926.25 counts?
For this year, I have the same question. Currently I have put in $11,418.75 with another $568.75 coming out of 3 more paychecks = $1706.25 So that leaves $4875 to put in. I believe I'm getting the same bonus as last year but it might be a little more (we won't know until after we have to decide what % to allocate to our 401k's). I put 75% allocated to 401k, but I am not sure whether that amount should include the SS and Medicare tax as mentioned above or not.
Help!