Make These Tax Moves for 2019 Before It's Too Late

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4. Take home pay will be reduced by: the amount contributed minus tax savings

People often forget that contributing to 401K reduces their taxable income and their take home will not be reduced by the amount contributed.

If you contribute $1,000, and you are in the 22% tax bracket, then taxes will go down by $220, so your net after-tax contribution will be $1,000 - $220 = $780. Your paycheck will go down by $780 if they do the proper adjustments.

Your 401k balance will go up by $1,000 plus whatever company match there is.