Hi @tax102523 ! Thanks for joining us today.
You are correct. You do not pay taxes on the money you contribute OR any gains, interest or dividends the 401(k) or 403(b) plan generates until you withdraw from the account.
These plans are a great way to save for retirement and help reduce your current taxable income. In 2023, you can contribute up to $22,500 a year to a 401(k) or a 403(b) plan.
Thank you!
Melanie, CPA
