Question

. Increasing your 401k deduction will ________ your take-home pay and __________ your federal taxes in the current year

Answer 1

Boosting 401k contribution is a good saving plan for retirement. If you increase your 401k contribution, then you will be able to save more and will decrease your take-home pay. This not only boosts saving but also affects the federal taxes int he current year. It can also get with held for your federal and state taxes.

Answer 2

I believe the answer is: decrease/decrease

two facts about 401k are:

- It directly deducted from the amount of salary that you receive from your workplace, which would reduce your take home pay.

- The tax rate that you should pay is multiplied by your net income. When your income is deducted through 401k, the amount of your net income would be reduced along with your tax payment.