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Is my simple IRA eligible for tax breaks ?
I have an simple IRA through my job I'm not putting money into it my employer is is this still eligible for a tax break?
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Is my simple IRA eligible for tax breaks ?
If there is a code "S" in box 12 on your W-2, then this is the amount contributed to your Simple IRA.
In this case, your tax break is that this code S amount is not in included in Wages in boxes 1, 3, or 5, because employer contributions to a Simple IRA are not subject to federal income tax, social security tax, or Medicare tax.
In other words, your employer is making tax-free contributions to your retirement.
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Is my simple IRA eligible for tax breaks ?
If there is a code "S" in box 12 on your W-2, then this is the amount contributed to your Simple IRA.
In this case, your tax break is that this code S amount is not in included in Wages in boxes 1, 3, or 5, because employer contributions to a Simple IRA are not subject to federal income tax, social security tax, or Medicare tax.
In other words, your employer is making tax-free contributions to your retirement.