What tax percentage been calculated for bonus

[Spartan]

2 minutes ago, abulu said:

So 22% federal + state 6% + inka yemi vuntadhi?

nope

[dkchinnari]

4 minutes ago, Spartan said:

nope

how to change bonus amt to 401k...

[coffeeabhi]

9 minutes ago, abulu said:

So 22% federal + state 6% + inka yemi vuntadhi?

Social security and medicare tax kooda add avuthundhi. Check 

https://blog.taxact.com/how-your-year-end-bonus-is-taxed/#:~:text=Employee bonuses are taxable%2C just,from every paycheck you receive.

[Spartan]

54 minutes ago, dkchinnari said:

how to change bonus amt to 401k...

@dkchinnari ne contributions ekkada set chestav alkade untadi bonus check seperate contribution allocate cheyochu

maaku vanguard lo untadi

[dkchinnari]

7 hours ago, Spartan said:

@dkchinnari ne contributions ekkada set chestav alkade untadi bonus check seperate contribution allocate cheyochu

maaku vanguard lo untadi

ohh let me check in fidelity...ty

[dgnfiedmn]

Bhayya be careful. Everyone's situation is different and don't just blindly follow. For example if your company matches 401k contributions and if you max out early in the year you will loose all that company matching later in the year. So be cognizant of that fact. My advise is if you already are inline to max out by the end of the year, keep at it and enjoy your bonus. Later bro.

[abulu]

13 hours ago, Spartan said:

nope

 

13 hours ago, coffeeabhi said:

Social security and medicare tax kooda add avuthundhi. Check 

https://blog.taxact.com/how-your-year-end-bonus-is-taxed/#:~:text=Employee bonuses are taxable%2C just,from every paycheck you receive.

Oh 🙄 ...

[coffeeabhi]

5 hours ago, dgnfiedmn said:

Bhayya be careful. Everyone's situation is different and don't just blindly follow. For example if your company matches 401k contributions and if you max out early in the year you will loose all that company matching later in the year. So be cognizant of that fact. My advise is if you already are inline to max out by the end of the year, keep at it and enjoy your bonus. Later bro.

Good point bhayya. You have to check whether the company has matching limits per paycheck or per year.

Assuming the company matches 50%,

Per year limits aithe, if you contribute $20,000 in the first paycheck of the year, they will contribute $10,000

Per paycheck limit aithe, they contribute 50% on 5% or 10% of base in that paycheck. $20,000 contribution ki you may get only $1000 company match and lose the company matching for the rest of the year.

[Anta Assamey]

Rich people ki consultant laga tayaru ayyadu @Spartan .. 

[krrish]

What is the advantage of maximizing 401k? Is this because you get a better rate of return by the time you retire? You have to pay taxes anyway on the money you receive from 401k later on….am I missing anything?

[MiryaIgudaMaruthiRao]

16 hours ago, abulu said:

Employer manaki bonus format iche money calculated on 30% or 33% or 40% flat??

40 flat 

[MiryaIgudaMaruthiRao]

15 hours ago, Spartan said:

bonus nunchi pay cheseste ado satisfaction

ne next monthly payments takkuvai .. salary ekkuva vastundi ani santoshinchocchu 

Our bonus monthly ba, how we can adjust in these case scenario ? 

[MiryaIgudaMaruthiRao]

7 hours ago, dkchinnari said:

ohh let me check in fidelity...ty

Did you find in fidelity ba ? 

[abulu]

4 minutes ago, krrish said:

What is the advantage of maximizing 401k? Is this because you get a better rate of return by the time you retire? You have to pay taxes anyway on the money you receive from 401k later on….am I missing anything?

1) If things are going smooth, you dont need that money 

if things are not good, you can withdraw with penalty free 

2) if you move to India and no income generated, then rollover the 401k to IRA, say you have 150k in 401k 

30k every year you pay tax and rollover to Roth IRA.  Pay nominal 10% tax, and after 5 years you can with draw completly. 

Its a slow process but saves you 20% taxes and also you can invest in your stocks of your choice in Roth IRA. 

 

[krrish]

7 minutes ago, abulu said:

1) If things are going smooth, you dont need that money 

if things are not good, you can withdraw with penalty free 

2) if you move to India and no income generated, then rollover the 401k to IRA, say you have 150k in 401k 

30k every year you pay tax and rollover to Roth IRA.  Pay nominal 10% tax, and after 5 years you can with draw completly. 

Its a slow process but saves you 20% taxes and also you can invest in your stocks of your choice in Roth IRA. 

 

What do you mean by penalty free? You mean the pandemic situation? Any amount withdrawn prior to retirement needs to go through a penalty, right?

 

is 30k the maximum you can withdraw per year with the nominal 10% tax?