This is just a fun post of chats with myself. I have no one else that really cares or should really. It's personal finance.
Anyway, my local professional organization sent an email to solicit donations for pharmacists that may have been affected by tornadoes in Kentucky. I had no idea!
So in the Christmas spirit, I immediately clicked. Why not! I was directed to a Go Fund Me page but luckily, there was a spot to select if your company matched donations. Wait, I think we do!
Totes forgot. I planned to donate about $25.
After seeing my organization did match, I was excited. I clicked around my company's information portal and realized I could donate directly from our portal. This was easier because then I wouldn't have to submit receipts.
So I actually got stingy and lowered my donation to $20, but with the match, it became $40. Isn't that amazing! I'm always on the lookout for ways to optimize finances (easily). This was awesome!!
I was so excited I found my aunt's charity and donated $20 more dollars to that and with a match, that's $40. Talk about free money!
Tax Savings
So something that was new to me with my new company in terms of 401k was the Spillover. I reached the 401k max for this year with my Nov 30 check. Yay! But we have the option to do a spillover. So we keep contributing the same percentage and it goes to an After Tax pot (which I convert to Roth). This way the company still matches. Yay!!
The point is this. I just noticed that doing the pre-tax 401k means I keep $366/ pay period of my own money. Because now that the money is coming out after-tax, I noticed my tax bill is $366 more. So geez!
That's $732/mon I'm not paying in taxes just by contributing to my 401k pre-tax! That's $8784 in tax - savings annually!! How awesome is that!
Evidence:
Taxes when contributing to pre-tax 401k:
Taxes after pre-tax 401k maxed out:
That's per pay period!!
That's your money news for the hour.
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