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

User Aerioeus
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1 Answer

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I believe the answer is reduce; reduce
401k is a specific amount of money that will be deducted from your initial pay so it could be allocated to your pension account.
When 401k deduction increased, it will take a bigger chunk on your salary, so your take-home pay will be reduced. The amount of 401k deduction is considered as pre-tax, so it would not be counted in federal tax.

User Enu
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