AlexanderS08
Expert Alumni

Retirement tax questions

Are you saying that Box 1 of your W-2 should be $25,000 less? Box 1 is the amount that goes to the "Adjusted gross income" for your return.

 

Is it possible that you contributed to a Roth option? Roth contributions are not pre-tax which means they do not reduce your wages. The benefit comes with the withdrawals as all distributions are tax free since you did not reduce your taxable income.

 

On the other hand, if you make a pre-tax contribution, the entire distribution is taxable when withdrawn.

 

 

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