Have a Tax Question? Ask a Tax Expert
The amounts deferred under your 401(k) plan are reported on your Form W-2, Wage and Tax Statement. Although elective deferrals are not treated as current income for federal income tax purposes, they are included as wages subject to Social Security (FICA), Medicare, and federal unemployment taxes (FUTA).
You should check what taxes were paid on the wages. The amount for 401k would have been taken out before any income taxes were calculated.
If your employer matches contribute enough to get the full match. If you do not then you are missing out on money.
Tell me how often you are paid.
I also need to know what your allowances are for withholding and your filing status (married, single)/
$18,000 is the limit on contributions for 401(k). You can not put more than that amount.
There are catch-up contributions (for people aged 50 and older) which remain at $6,000.
So if you wish to have the most and defer the maximum on tax you can push your contributions to the limited amount.
Current taxes you saved would be $375.00 if you can move up to $1500 a month in your contributions.
You cannot go over that because the limit is $18000 for the year.
SO $1500 is the most you would be allowed.
that is the most you can have contributed or you will be over the limit for contributions
Monthly Gross Pay per month $7,417.00
Federal Withholding would be $1,454.98
Social Security $459.85