If an employee defers compensation into a 401(k) plan, the deferral (payroll deduction) is still subject to social security taxes.

Name: If an employee defers compensation into a 401(k) plan, the deferral (payroll deduction) is still subject to social security taxes.
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Deferrals into a 401(k) plan are subject to social security taxes. However, they are not subject to income tax until they are withdrawn from the plan.

If an Employee Defers Compensation into a 401(k) Plan, the Deferral