The Beauty of Pre-tax Savings

See how pre-tax savings affects your take-home pay.

Pre-tax savings simply means that your contribution to your retirement savings plan is made before taxes are deducted. When your contribution is deducted before federal and state income taxes are taken out, the impact to your take home pay may be less than you’d expect.


The Beauty of Pre-tax Savings

California income tax brackets
Other state income tax brackets

No contribution

With contribution

Contributing $200 per pay period, your paycheck is reduced by $150.

Net Pay after contribution (post-tax) is $750.**

With no contribution your (post-tax) paycheck is $900.**