2007-01-26 09:14:55 · 6 answers · asked by Jason R 1 in Business & Finance ➔ Taxes ➔ United States
The taxable wages in block 1 of your W2 reflects the net amount after the 401k contributions were taken out. So, yes, you get a tax break on that as it's not reported as income.
2007-01-26 09:35:55 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You already get a tax break for contributing to a 401k plan when you have it taken out pre-tax. Unless you contribute to a Roth IRA, your 401k money goes in before tax and reduces your taxable gross. If you want more deductions, contribute to an IRA.
2007-01-26 17:22:41 · answer #2 · answered by Jen 5 · 1⤊ 0⤋
The answer is It Depends...If you are in the right tax bracket you could get the Saver's Credit on your 2006 taxes for the contributions you made in 2006. Also you may be eligible to pay in additional money on an IRA and that would give you even more benefits by reducing your income, if you choose a Traditional IRA, and by increasing your Saver's Credit. If you were to choose a ROTH IRA that wouldn't reduce your income but would qualify for Saver's Credit. Good luck on your taxes this year.
2007-01-26 17:40:13 · answer #3 · answered by misskenzie12 2 · 0⤊ 0⤋
Contributions to your 401K are taken out pre-tax, so yes, you get a tax break automatically for it, since it doesn't show as taxable income on your W-2.
2007-01-26 20:22:43 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Of course. But if your employer was taking your contribution out of your paycheck, then you don't have to do anything on your tax return. The amount you put in will be taken out of your income and so you won't pay any income taxes on that amount
2007-01-26 17:26:09 · answer #5 · answered by Anonymous · 1⤊ 0⤋
no only contributions to a traditional ira
2007-01-26 17:20:43 · answer #6 · answered by Ski_Bum 3 · 0⤊ 1⤋