This is actually a followup question to a previous post:
I mistakenly posted it there first as an answer. I'm new here ... Sorry!
My question concerns a 401K plan and the contribution amount.
In the linked question, it says he/she will contribute $2500 per week to his 401K plan up until the $17,500 limit. However, since SS & Medicare are due, wouldn't the actual contribution be less?
For example, assuming the individual owes 6.2% for Social Security and 1.45% for Medicare, wouldn't the actual contribution be $2,308.75? ($2,500 - $155 - $36.25)
This would mean seven full paychecks and then 58% of the eighth.
Or am I thinking about this all wrong?