# Lower my tax withholding liability and increasing my net worth

My goal here is to optimize my net worth, not cash on hand. With the understanding that higher net worth makes access to capital easier. So tax deferred options are appealing to me, as long as I can put that on a financial statement.

Lets say my Bi-Weekly period I make \$6,000 of income (<- this number is for example purposes only so that we know that the 28% tax bracket is used)

Then from my understanding 28% of that is withheld by the employer for federal tax withholding, since I am a single person. (Don't worry about other deductions here)

The amount withheld is `\$6,000 * .28 = \$1680` The amount leftover is `\$6,000 - \$1680 = \$4320`

If I were to start a 401k (assume no matching), and put 15% of each pre-tax paycheck in it, then that would be

Amount into 401k is `\$6000 * .15 = \$900` each pay period

Lowering my federal tax liability to `\$6000 - \$900 = \$5100`

The taxable paycheck would be \$5100, which would still be in the 28% tax bracket.

The amount withheld now would be `\$5100 * .28 = \$1428` The amount leftover now would be `\$5100 - \$1428 = \$3672` plus the `\$900` in my 401K = `\$4572`

Leaving me with a higher total net worth (total \$4572 vs total \$4320). Am I understanding how this works correctly? I realize I would reach the max contribution into a 401K, but thats fine