Can I Deduct Elective Deferrals?

Salary reduction/elective deferral contributions are pre-tax employee contributions that are a generally a percentage of the employee's compensation. ... If a plan allows after-tax contributions, they are not excluded from income and an employee cannot deduct them on his or her tax return.

Are elective deferrals to 401k tax-deductible?

Generally, deferred wages (elective deferrals) are not subject to federal income tax withholding at the time of deferral, and they are not reported as taxable income on the employee's individual income tax return.

Is elective deferral pre-tax?

Salary reduction/elective deferral contributions are pre-tax employee contributions that are a generally a percentage of the employee's compensation. Some plans permit the employee to contribute a specific dollar amount each pay period. 401(k), 403(b) or SIMPLE IRA plans may permit elective deferral contributions.