Pretax contribution

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.

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.

Pretax contribution.

A pretax contribution is money that you agree to have subtracted from your salary and put into a retirement savings plan or other employer sponsored benefit plan.

Your taxable earnings are reduced by the amount of your contribution, which reduces the income tax you owe in the year you make the contribution.

Some pretax contributions, including those you put into your 401(k), 403(b), or 457, are taxed when you withdraw the amount from your plan. Other contributions, such as money you put into a flexible spending plan, are never taxed.

References in periodicals archive ?
401(k) contributions: Because of the limited participation of rank-and-file employees in the 401(k) plan, the executives are limited to an annual pretax contribution of $4,500 to the plan (the 2012 IRS limit on employee pretax contributions under Sec.
As a result of the revenue and gross profit factors noted, AMREP Southwest's pretax contribution decreased from income of $3,873,000 and $19,312,000 in the third quarter and first nine months of 2008 to a loss of $930,000 in the third quarter and income of $3,122,000 for the first nine months of 2009.
Over time, the impact of this additional rate of return--coupled with the pretax contribution allowance--can be substantial.
Fortunately, Weber's employer allows for ``catch-up contributions,'' a pretax contribution that exceeds the limit on 401(k) plans.
The maximum pretax contribution dollar amount is set by law and adjusted for inflation annually.
As a result of the above factors, the pretax contribution from Kable was a loss of $2,558,000, or a loss net of tax of $0.
This year the government allows a maximum pretax contribution of $9,500 to 401(k) plans.
The pretax contribution from the Government Contracts segment will be approximately $90 million to $100 million in 2012, down from approximately $180 million in 2011.
For the 1997 second quarter, Harris Regional Banking pretax contribution was $55.
4 million related to divested HR BPO operations and a pretax contribution of $0.
Colder weather and higher base rates increased the utility operations pretax contribution to $65,500,000 in 1996 from $44,300,000 in 1995, Greenberg said.
Without adjusting for the effects of preopening expenditures, the Hard Rock Hotel/Casino provided Harveys with a pretax contribution of $1.