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I have a retirement account through my employer. All the contributions are pre-tax. Do I need to claim a deduction on those contributions?
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June 1, 2019
12:14 AM
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Retirement tax questions
No, since the 401(k) plan contributions are made with pre-tax dollars, your employer does not include these amounts in your taxable income for the year. At the end of the year, when you receive your W-2 form that shows your earnings, you will notice that your wages subject to federal income (box 1) tax are lower because of your 401(k) plan contributions (box 12). Since the contributions are not counted in your taxable income to begin with, you do not take a deduction when you file your return.
June 1, 2019
12:14 AM