Before-Tax Contributions

When you make before-tax contributions to the 401(k) Plan, you won’t pay federal income taxes and, in most cases, state income tax, on the money in your account until you take it out — usually, when you’re retired. You may be in a different tax bracket then and pay less taxes than you would now. (Social Security and/or Medicare taxes still apply.)

This entry was posted in . Bookmark the permalink.