Pretax vs. Roth Accounts With a Roth account, such as aRoth 401(k)orRoth individual retirement account (IRA), you pay taxes upfront, in the year you make the contribution, so in retirement, you can withdraw the funds tax free, as long as you’ve had the account for five years (in...
Due to the nature of 401(k) plans, you can always expect that your contributions will be pre-tax. The only exception is if you have aRoth 401(k)that allows for after-tax contributions. Roth 401(k) plans are becoming increasingly common, but they're still much less common than the sta...
Some retirement plans (such as a Roth 401(k) plan) Disability insurance Life insurance Garnishments You might need to withhold some of these deductions before taxes based on the policies your business has set up. Post-tax example Let’s say your employee, Carole, earns $500 per week. Carol...
Qualified vs. Nonqualified Retirement Plans Personal Finance Are Employee Contributions to an HSA Subject to FICA? Wages Excluded From FICA An employer must establish an IRS-qualified accountable plan to offer nontaxable business expense reimbursements, which are exempt from FICA taxes. A primary requi...