MMR: My brain hurts, increasing 401k contribution

[y4m]

Not exactly.

It always helps me to work with numbers.

You made $100K and were putting $10K in retirement (10%) and taking home 90K.

Now with your 5% raise, you make $105K, but if you increase your contribution to 15%, you'll be contributing $15750 and taking home $89,250.

[SJ]

Not quite.

Let's use numbers:

Scenario A: Making 100K, contributing 10%- net $90K

Scenario B: 5% raise. Making 105K, contributing 15%- net $89.25K

[njohnson1972]

No. Even though you won't be paying income taxes on the 5%, you will still be paying SS tax on it.

[y4m]

It's like Sarajoy and I were inside each other's brains there.

[SJ]

Yeah that was a little creepy!!