Should we increase 401k for bonus to save pre tax of reduce it to have more liquid cash?

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Depends on your individual circumstance, extra withholding will be returned when you file taxes. I prefer to get to my max contribution asap so will likely increase 401k contribution

It doesn’t matter at the end of the day. When it comes to your tax liability at the end of the year, your 401k contributions for the whole year are looked at - it doesn’t matter if it comes out of your bonus or your regular pay check.

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