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.
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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.
Sandy -
Subject to FICA & Medicare?
Subject to these taxes?Originally posted by S T View PostTax 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.
SandyComment
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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
SandyLast edited by S T; 06-03-2012, 08:22 PM.Comment
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