MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Drop Your Taxable Income Instantly 📉

17 May 2026 · 1 min

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Mark Kohler shows how to cut taxable income with pre-tax retirement accounts like a 401(k) or defined benefit plan. A $23,000 contribution on a $130,000 salary drops your taxable income to $107,000, saving thousands in taxes while you get an employer match. Roth accounts and HSAs offer tax-free growth as a second layer.

Chapters

High earners should not ignore this tool. By using a pre-tax account like a traditional 401 or a DB plan, I'm going to reduce taxable income. I'm going to drop my income into even a lower marginal bracket. The income I am going to be taxed on, I'm going to improve my cash flow efficiency because I'm being smart about my next taxable dollar. And an example would be if I earn $130,000 and I contribute $23,000 to a traditional 401, your taxable income drops to roughly $107,000, and there may even be a match in there. So that could save you several thousand dollars in federal and state tax and put you in a lower bracket. This is the real immediate tax leverage this year. Meanwhile, your Roth and your HSA is experiencing tax-free growth over here.