I'm trying to dump as much money into my 401k as soon as possible. I have authorized 90% of my gross pay to go to my 401k. The company I work for is making that deduction correctly.
My concern is the remaining 10%. My understanding is that federal and state deductions should be based on the remaining 10%, as if I had only earned that 10% for the pay period. What I'm finding instead is that the federal and state deductions are eating up all of that remaining 10%, resulting in $0 take home pay for me. Does this sound right?
Here's an example.
For one period I grossed $1909.50. 90% of that is $1718.55 which was put into my 401k.
Of the remaining $190.95, $44.87 was taken out for for federal withholding, $27.69 for Medicare and $118.39 for Social Security. There was nothing remaining to be taken out out for state withholding (Illinois).
I am married and claim one state and one federal exemption. I do not have a Roth IRA that I'm contributing to.