Which of the following deductions may be taken on a pre-tax basis? (Select all that apply.)
A) Cafeteria plan
B) Garnishments
C) Health insurance
D) Retirement plan

Question

Quizplus · Accepted Answer

A cafeteria plan allows employees to choose from a variety of pre-tax benefits such as health insurance, dependent care assistance, and retirement plans. Health insurance premiums can generally be deducted on a pre-tax basis, as can contributions to retirement plans such as 401(k)s or IRAs. Garnishments are not pre-tax deductions, but rather court-ordered deductions from an employee's paycheck to pay off a debt or other financial obligation.

Which of the Following Deductions May Be Taken on a Pre-Tax