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Best answer by MargaretL

Yes, it does.  It means that your 401K contributions will not be taxed as wages, which - as a result- lowers your taxable income, which ultimately lowers your federal tax on your tax return.

1 reply

MargaretL
MargaretLAnswer
Employee
June 1, 2019

Yes, it does.  It means that your 401K contributions will not be taxed as wages, which - as a result- lowers your taxable income, which ultimately lowers your federal tax on your tax return.

June 1, 2019
How about traditional IRA? Please provide me whit more info,those turbo tax have a option to open one in order to pay less taxes?