Here's a simple example (using some random figures and tax rates, not actual):
Gross wages: 50,000
Fed taxes withheld: 50,000 x 0.28 = 14,000
Say you contributed $5,000 to your IRA.
Taxable income: 50,000 - 5,000 = 45,000
Fed taxes: 45,000 x 0.28 = 12,600
Taxes paid: 14,000
Refund due: 14,000 - 12,600 = $1,400
Note that this is the same as not having the $5,000 taxed to begin with: 5,000 x 0.28 = $1,400
How much do you make a year? Get a Roth IRA then Get your brokerage firm to transfer the funds from your bank account every 2 weeks,month or whatever
Dont stress so much...Life is good
What you want to do would be completely up to your company's payroll department. Very doubtful they would do it because of the extra expense involved. Your IRA contributions will offset your annual tax burden.
is there a way I can link my salary check directly to this account (just like I have contributed to 401K? I have found that I can link my bank and connect to IRA. but I think the whole point of traditional IRA is to pay tax later?? isn't. so If I am linking my bank to my IRA; ain't I am linking my net pay to my traditional IRA (money that I cant even take out before I turn 60)?? pls help. i am so clueless.