Timothy J. Cummuta

Plan/IRA Math II

Option 1: save tax-deductible

• defer $10,000 of your pay into 401(k) plan

• grow $10,000 x 25 to $250,000

• withdraw your plan account at 40% tax

• pay $100,000 tax (40% x $250,000)

• put $150,000 in your pocket

Previous slide

Next slide

Back to first slide

View graphic version