This is a real question.
Do I lose anything (pay more taxes later) if I max out my 403b and 457 in the first 6 months of the year vs over 12 months?
Sorry if this is a confusing question, I am just wondering if I pay extra in taxes for the second 1/2 of the year if I max them out in the first 1/2 of the year.
Over the course of the YEAR, your tax bill is the same as it would be if you maxed out the 403/457 in the first six months. But your paycheck will be vastly different.
For example, let's say you put $4k each month into 403(b) and $4k each month, Jan-June into the 457. The withholding calcs will assume you are making $96k less annually than you actually are...($8k x 12 months) those first 6 months. So your taxes will be lowered each paycheck, depending on your tax bracket - 32% bracket?
So then, in July, when you're NOT squirreling away that extra $8k, all of it is taxable. So you'd probably have a jump in taxes paid each paycheck - by 35%or so. But since you're not saving in the retirement accounts, you might actually have more money to take home. It won't be a full $8k more each month, but it will be more take-home pay than when you were contributing to the retirement funds.
I hope that makes sense...