| Ordinary Taxed Savings Account |
Company Retirement Plan Account |
||
| Annual Income | $35,000 | $35,000 | |
| Your plan contribution | $0 | 10% = $3,500 | |
| Taxable pay | $35,000 | $31,500 | |
| Federal income tax single filer | $5,174 | $4,334 | |
| Social Security/Medicare | $2,678 | $2,678 | |
| Invest 10% of taxable pay | $3,500 | $0 | |
| Take-home pay | $23,648 | $24,488 |
Hypothetical for illustrative purposes only.
* The amount of income tax you save depends on your tax bracket and how much you put into your plan account. The federal tax shown reflects the standard annual withholding for a single filer making $35,000 at a federal tax bracket of 25% a year in 2007. Exemptions, itemized deductions and state taxes are not reflected in these examples.
* The amount of income tax you save depends on your tax bracket and how much you put into your plan account. The federal tax shown reflects the standard annual withholding for a single filer making $35,000 at a federal tax bracket of 25% a year in 2007. Exemptions, itemized deductions and state taxes are not reflected in these examples.
