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Tag: "Tax Planning"

401(k) Trap: Match Changes to Sting Taxpayers at Filing

Employees who opted for Roth 401(k) matching contributions may face tax surprises. These contributions are taxed upfront, unlike previous pretax matches. The employer's Roth match, which is essentially extra income, can increase your taxable income and result in higher tax liability. It's crucial to plan ahead by adjusting withholding or estimated tax payments to avoid any unexpected tax bills.