How Saving Before-Tax Works*

	SAVING IN THE PLAN WITH BEFORE-TAX DOLLARS	SAVING OUTSIDE THE PLAN WITH AFTER-TAX DOLLARS
Your Annual Pay	$75,000	$75,000
Your Before-Tax Contribution At 6%	$4,500	$0
Taxable Income	$70,500	$75,000
Federal Tax Withheld	$10,534	$11,524
Net Income	$59,966	$63,476
After-Tax Savings Outside The Plan	$0	$4,500
Spendable Income	$59,966	$58,976
Savings Advantage	$990	$0

_{* This example is hypothetical and for illustrative purposes only. Actual taxes will vary. This example is based on 2025 standard deduction and exemption amounts.}