Do you know the difference in types of retirement plan contributions? Your employer-sponsored retirement plan may allow you to choose the types of contributions you make to the plan from your wages. Here’s a brief description of the different types of contributions your may be able to make: • Pre-tax elective deferrals – You don’t include these amounts in your gross income in the year that you make the contributions. For example, if you direct your employer to contribute $2,000 from your $30,000 salary in 2016, you only include $28,000 in your gross income. You will have to include these
More
