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Increasing your 401k deduction will ________ your gross pay and __________your federal taxes in the current year. A. Not change, Not Change B. Decrease, Increase C. Not change, Decrease D. Increase, Decrease E. Decrease, Decrease

Respuesta :

mathmate
Gross pay is the amount received, before any deductions, so increasing 401K deduction will not change gross pay.

Typically deductions are from the gross pay, resulting in a decrease in taxable amount, hence a decrease in (federal) taxes.
saadhussain514

Increasing your 401k deduction will not change your gross pay and decrease your federal taxes in the current year.


Therefore,


The correct answer choice is:


C. Not change, Decrease


The purpose of the 401K account is to save lots of cash for emergencies, invest cash for school, invest cash for retirement, and additionally save cash for vacation. Money unbroken in this account is not counted as dutiable income after you file your revenue enhancement return, that saves you cash.

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