4 Proven Ways To Double Your Money | Smart Change: personal finance

When you invest in a traditional-style 401(k) plan, you get an immediate tax deduction based on the amount of your marginal tax rate. If your 401(k) also offers a match, the combination can often add up to the opportunity to nearly instantly double your money.

No. 2: Enlist your boss and Uncle Sam for help getting there quickly

Highlights

  • If you put $1,000 into your Traditional 401(k) and receive a 50% match, that’s a total of $1,500 going into your account. If you’re in that 25% combined marginal tax bracket, your $1,000 contribution represents only $750 of otherwise spendable cash.

  • Here’s how that works. Depending on your income, the states you live and work in, and filing status, the tax benefit could be somewhere around 22% federal and 3% state — or 25% total. In addition, matches differ by companies, but a typical match offers 50% of your contribution amount, up to some percentage of your salary.