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Salary-Reduction Contribution

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Salary-Reduction Contribution
A contribution to an employer-sponsored plan whereby the employee does not receive a check for his/her entire salary. Rather, the employer puts a portion of the salary into the plan directly; the contribution is automatically invested for the employee's retirement. A salary reduction contribution may come before or after the employee's taxes. This determines whether or not the withdrawals after retirement are taxable. See also: IRA, 401(k).
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Employees can't make salary-reduction contributions Defined Benefit (DB) Plan: Contributions are based on what is needed to provide established, determinable benefits to plan participants.
Retirement savings plans: better than ever for your employees and ... by The Business Owner
2002-41, an employer sponsored an HRA paid for solely by the employer, not through salary-reduction contributions.
HRAs for former employees by O'Driscoll, David / The Tax Adviser
401(k) plan) can continue to make salary-reduction contributions, regardless of age.
New retirement savings incentive may be an opportunity for "retirees" by Bakale, Anthony / The Tax Adviser
 
 
 
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