Elective Contributions to Tax-sheltered Annuity Plans?

[zeros]

Was taking a practice test and this question came up. Are these types of contributions included in wages and are they subject to what kind of taxes? I don't have a clue.

[S T]

Tax Sheltered Annuity Plans are usually Sect 403B plans through employer, that employees of either non-profit or public education can use as savings retirement. Similar to a 401K plan

See a lot of these with the School Systems and some Hospital Employees.

And yes, the Employee Contribution is deducted from the employee's income, and tax deferred into the TSA.

http://www.irs.gov/retirement/articl...172430,00.html

Sandy

[zeros]

Subject to FICA & Medicare?

Tax Sheltered Annuity Plans are usually Sect 403B plans through employer, that employees of either non-profit or public education can use as savings retirement. Similar to a 401K plan

See a lot of these with the School Systems and some Hospital Employees.

And yes, the Employee Contribution is deducted from the employee's income, and tax deferred into the TSA.

http://www.irs.gov/retirement/articl...172430,00.html

Sandy

Subject to these taxes?

[S T]

Your original post did seem to include "subject to payroll taxes" or at least was not clear.

I would think your "practice test" was more for subject to withholding, or reducing taxable wages - rather than addressing "payroll taxes" issues of FICA-MCare and State related taxes.

try "google" 403b contributions subject to fica, etc - there is a lot of information

Sandy