Long story short, I am leaving X company for Y company. I Have 18.5 days of vacation pay that they want to add to my last semi-monthly check, I feel that Uncle Sam will give me the no-no touch and take way over half. I am fortunate enough not to live paycheck to paycheck and am considering sending 100 percent to 401K to keep more of what's mine. Thoughts?
Another financial advice thread
- Thread starter Willc
- Start date
ncpartsguy
Well-Known Member
- Joined
- Sep 25, 2010
- Location
- Boone, NC
401K that biotch, good call.
You won't "miss" any pay, and will reap rewards when it matters. Win win.
You won't "miss" any pay, and will reap rewards when it matters. Win win.
rcalexander105
JV Wheeler
- Joined
- Nov 3, 2017
- Location
- High Point
Is this a traditional or roth 401k? If the latter, you'd contributing post-tax dollars so it'd likely be a wash.
- Joined
- Mar 13, 2005
- Location
- Raleigh, NC
Tax won't matter. Even if they withhold extra now, it balances out at the end of the year.
RatLabGuy
You look like a monkey and smell like one too
- Joined
- May 18, 2005
- Location
- Churchville, MD
This. The taxes now are irrelevant. You'll get it back.
Heck you could walk into HR right now and change your filing details on your W-9 and get 100% of it w/ no witholding.... but then you'll owe later.
If my math is right this is nearly a month's wages, so likely a pretty good chunk o change. If you don't need the $$, then yup, 401k unless you're near the max contribution. Roth vs traditional is your call, w/ meaning taxes now vs later.
RatLabGuy
You look like a monkey and smell like one too
- Joined
- May 18, 2005
- Location
- Churchville, MD
Although the real answer is... hookers and blow.