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Before-Tax Contributions
(redirected from Pre-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.

Before-Tax Contributions
Contributions made to a retirement plan with taxable withdrawals. That is, when one makes before-tax contributions to a retirement plan, one does not pay taxes on the contributions in the year they are made, but defers taxation until one begins to make withdrawals from the plan. One makes before-tax contributions to traditional IRAs and most 401(k)s. See also: After-tax contributions.


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The share of pre-tax contributions from Bharti of India, Indonesia's Telkomsel and the Philippines' Globe Telecom fell 10-34 percent over the three months, SingTel said.
The IRS said the changes immediately allow employers with cafeteria plans--plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits--to permit employees to begin making pre-tax contributions to pay for the expanded benefit.
The IRS issued guidance announcing the changes immediately allow employers with cafeteria plans to permit employees to begin making pre-tax contributions to pay for this expanded benefit.
 
 
 
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