"pre-tax contributions that you make to an employer-sponsored retirement plan such as a 401(k) reduce your income tax, but they do not reduce your Social Security tax. The same goes for traditional IRA contributions, as well as contributions to a SEP or SIMPLE IRA.
And because they have no effect on the amount of your income that’s subject to Social Security taxes, pre-tax contributions to an IRA, 401(k), 403(b), etc. do not reduce the Social Security benefits that you will eventually receive."
https://obliviousinvestor.com/do-401k-and-ira-contributions-reduce-my-social-security-benefits/
EVERYTHING you need to know about 401k (History, Taxation, Fees, Withdrawal of funds, RISK) ETC
ReplyDeleteMost Americans are aware they save too little for retirement, giving themselves a letter grade of “C” or lower
Tax planning for your business may be the difference between turning a nice profit and barely keeping the doors open. Similarly, making smart tax moves may free up more money to save for a secure retirement
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Using a Solo 401(k) may allow you to invest more for your future and get some nice tax deductions along the way.
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