<prompt> Human: Lets assume my husband and my combined salaries next year will be 160,000.Lets also assume my husband receives a restricted stock unit vest of 35,000, which places our gross income at 195,000.These are the tax brackets from the new tax plan, which is now law. 22 percent: 77,401-165,000 24 percent: 165,001-315,000Exemptions no longer exist in 2018.If we subtract the updated standard deduction for married filing jointly 24,400, than our taxable income becomes 170,600, i.e. 195,000-24,400.It appears were about 24,400 over the 22 rate ceiling 165,000.If we max out our 401ks 18,500 limit, then can we deduct 18,500 2 or 37,000 to fall under the lower tax bracket?Edit: The 24 rate only applies on the specific portion of earnings above 165K... Okay, I get it.  <response>: Yes, but your effective tax rate and your marginal tax rate are two different things. 