<prompt> Human: This logic may only make sense to me so bear with me which is in part why I am posting because it sounds too good to be true, I am likely mixing apples and oranges. At least maybe someone can clarify whats wrong with this train of thought I cant shake so I can get my head straight.Just recently started a new job. Due to the increase I have received by taking this job I will be in a higher federal tax bracket than I previously was. At my last job I did not have a Traditional 401k setup but at this job I do. I got my first check including all benefit deductions and its about 300 more than I made at my last job sweet!.I am no mathematician however I cant keep help but think if I were to contribute 11k into a traditional 401k over the course of the year I would reduce my taxable income and fall in the lower federal bracket again at the end of the year pending no external income. Am I correct in thinking this would mean I would actually see more than 300 increase in my checks as less tax would be taken out or am I just all out of whack and need to go back to basic math class? Either way I am strategizing the best 401k strategy for me today in the event I cant max it this year and I am fully aware I will be taxed either way and that it just kicks the can down the road.Thanks!  <response>: Only your income above the threshold for the next marginal tax bracket is taxed at the higher rate. See the FAQ on taxes. 