| “Save
more for less.”
Sounds good, doesn’t it? Well, when you contribute
to your employer-sponsored plan, the IRS offers you the same
deal. Let me explain.
Your earnings are subject to income tax. (How well you know!)
If you’re in the 25-percent income-tax bracket, your employer
takes 25 cents from every dollar you earn and sends it to Uncle
Sam, leaving you with 75 cents. But, when your contribute to
your plan, money goes in before tax is figured. This means the
full benefit of each dollar is working for you. Plus, you pay
income tax on a smaller amount of income. Dee will show you. |