A true statement about 401k deductions is that they are contributions made by an employee to their employer-sponsored retirement plan on a pre-tax basis. These deductions reduce the employee's taxable income for the year, allowing them to save for retirement while simultaneously lowering their tax liability.
A true statement about 401k deductions is that they are contributions made using pre-tax income, meaning that the amount contributed is subtracted from the employee's wages before taxes are calculated. This results in a reduction in the employee's taxable income, leading to potential tax savings.
A true statement about 401k deductions is that they are pre-tax contributions that can be made by an employee towards their retirement savings. These contributions are deducted directly from the employee's paycheck before taxes are withheld, which helps to lower their taxable income for that year. By reducing their taxable income, employees can potentially lower their overall tax liability and save more for their retirement.
