it makes no real difference.. at the end of the year when you have to report your income to the IRS it doesn't matter which was bonus and which was salary... the amount taxed at the marginal tax rate will be the same...
so if you are positive on the market max your 401k contrib out of the bonus which comes at the beginning of the year so that your money will have more time to grow.. but if you are neutral/bearish on the market stick with the salary deductions: a) less immediate exposure to the market b) positive PV effect as you take your time with the contributions..
Message:
Anyone have any idea what sort of stuff you can deduct pre-tax? relocation costs or anything else? Thanks.
