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Before-tax contributions |
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Before-tax contributions The portion of an employee's salary contributed to a retirement plan before federal income taxes are deducted; this reduces the individual's gross income for federal tax purposes. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| A 401(k) plan allows employees to save and invest for their own retirement by making before-tax contributions through a cash or deferred compensation arrangement. |
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