Pre-tax contribution

Pre-tax contribution

Payment to an account made with funds from a worker's paycheck before federal income taxes are deducted.

Pre-Tax Contribution

A contribution made to a retirement plan with taxable withdrawals. That is, when one makes pre-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 pre-tax contributions to traditional IRAs and most 401(k)s. See also: After-Tax Contributions.
References in periodicals archive ?
Recent reports indicate that House Republicans may drastically limit pre-tax contribution limits to 401K retirement savings accounts, lowering the cap from $18,000 to $2,400.
The AHCA also increases pre-tax contribution limits for health savings accounts (HSAs), tying them instead to plan out-of-pocket limits, and it removes restrictions that prevent insurers from (https://www.
The innovative feature enables companies to reward employees for making student loan payments by providing a pre-tax contribution into their retirement accounts.
Mokrohisky's proposed pay package also includes an up-to-10 percent addition to his base salary in "deferred compensation" - a pre-tax contribution that the county puts in a pooled investment account.
Over time, the impact of this additional rate of return --coupled with the pre-tax contribution allowance--is substantial.
3% at the end of September, made a pre-tax contribution of EUR80m in July-September 2011, down from EUR140m in the previous year.
The net result is a full pre-tax contribution and excluding capital gains from income, generating even more after-tax wealth.
the maximum pre-tax contribution is currently $10,000, and
Since tax-deferred saving differentially benefits higher income workers, 401(k) plan regulations include pre-tax contribution limits and nondiscrimination provisions in addition to those in ERISA which apply to all pension plans.
Regional mobile associates pre-tax contribution for the quarter increased 12% and 16% in reported and constant currency terms respectively.
3m in stock for a total pre-tax contribution of USD9.
Exhibit 1 presents the increase in after-tax cashflow to a single taxpayer, arising from an additional $11,000 pre-tax contribution to either a Sec.