Under a 401(k)plan,your employer makes nontaxable contributions to the plan for your benefit and reduces your salary by the same amounts.

Name: Under a 401(k)plan,your employer makes nontaxable contributions to the plan for your benefit and reduces your salary by the same amounts.
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Under a 401(k) plan, contributions made by the employer are typically pre-tax, meaning they are not taxed until withdrawal, and the employee's salary is reduced by the contribution amount, which is also pre-tax.

Under a 401(k)plan,your Employer Makes Nontaxable Contributions to the Plan