Increasing your 401(k) deduction will lower your federal taxes in the current year.
Here's the explanation why:
- It can give an employee an investment for his or her retirement. It is a matching contribution of an employee and a company to be able to invest bigger amount of money.
- Tax- deffered contribution- because when you started paying this 40lk deduction, automatically your tax will be lesse
- It is convenient and very good investment