I received a few bonus awards at work for being a bad ass and the total monetary amount is about $2850. Being a new mustachian I immediately started wondering about how to save, where to invest, how much its being taxed, etc.
I looked up a previous award from last year: $1,000 award... total increase in paycheck $562.
WAIT... WTF!?!?!
So I will see taxes take 43.8% of my award? $1,248? Eff that, I've come up with a way to beat it (I THINK)
I calculated(after medicare, sdi, social sec.) how much I made per paycheck and added $2,850 to it. Then... I upped my contribution to my retirement by that much. I left a couple dollars as a buffer, but if all goes well I would have not been taxed on any of the $2850 and have put 2 weeks of pay into retirement!
(This works because I am still a ways off from the $18,000 yearly retirement limit)
So I will live off some savings I have for the next few weeks and hopefully see a $10 paycheck coming my way with a couple bucks being taxed on it.
If you have read this far and think I am missing something or know of a reason this wont work / is stupid, please let me know. Until then I will continue to feel like a