Can wife add to work 401k to reduce tax liability

silbergk1 · ‎June 4, 2019

MaryK1 · ‎June 4, 2019

No, a 401k plan allows employees to contribute a portion of their wages to individual accounts. The contributions are deferred compensation and must be deducted from her paycheck. They are elective salary deferrals are excluded from the employee’s taxable income.

If you are able to make deductible contributions to a traditional IRA they could be used to reduce your 2016 tax liability.

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View solution in original post

MaryK1 · ‎June 4, 2019

No, a 401k plan allows employees to contribute a portion of their wages to individual accounts. The contributions are deferred compensation and must be deducted from her paycheck. They are elective salary deferrals are excluded from the employee’s taxable income.

If you are able to make deductible contributions to a traditional IRA they could be used to reduce your 2016 tax liability.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Can wife add to work 401k to reduce tax liability