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

1 Answer

3 votes
Increasing your 401k deduction will reduce your take-home pay and reduce your federal taxes in the current year.

Explanation: Since he increased his contribution to his 401K he will get less take-home by, on the other hand, he'll have to pay less federal taxes since he doesn't have to pay income tax on the 401K until he withdraws from it.
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User Rgahan
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