Most employer 401(k) plans allow mid-year changes to the deferral election percentage. Before the bonus pay period, raise the deferral rate high enough to funnel as much of the bonus as possible into the 401(k), up to the annual limit.
Filing a return can be time-consuming and complicated. The possibility of an audit feels intimidating. And the cost can be high. Each year, Americans collectively work nearly four months just to cover their combined federal, state and local taxes. If you earn $100,000 a year, that can add up to more than $1 million over the course of your career - money that could otherwise be invested in your business or your family.
