Author Topic: Tax Return & 401k  (Read 868 times)

GhostRider103

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Tax Return & 401k
« on: November 09, 2018, 08:41:39 PM »
I did not contribute to a 401k in 2017. I contributed to a 401k in 2018.

Will contributing to a 401k lower the amount I get back on tax returns?

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secondcor521

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Re: Tax Return & 401k
« Reply #1 on: November 09, 2018, 10:18:44 PM »
Generally speaking, no.

Generally speaking, contributing to a 401(k) will decrease your net paycheck (the amount deposited into your bank) and increase the amount of your income tax refunds.

MDM

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Re: Tax Return & 401k
« Reply #2 on: November 09, 2018, 10:49:52 PM »
Will contributing to a 401k lower the amount I get back on tax returns?
It depends on how your withholding (determined by your W-4 entries) compares with your actual tax due (determined by your form 1040).


RWD

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Re: Tax Return & 401k
« Reply #3 on: November 10, 2018, 06:22:34 AM »
Contributing to a 401k will decrease your tax obligation by reducing your taxable income (I am assuming this is not a Roth 401k). Your tax refund is just getting back the money you over-withheld during the year (see MDM's post) and not really related to your 401k contributions.