3

When I make contributions to my employer's pre-tax 401k account, are FICA taxes applied before or after making the contributions?

7

401k contributions are exempt from federal (and sometimes state) income tax. They are not exempt from FICA.

So the answer to your question is FICA taxes are applied before making the contribution.

  • Right, Mike. But it should be noted, FSA and DCA come out before FICA. This might impact who takes these from their pay in dual income situations. – JoeTaxpayer Jun 4 '12 at 19:45

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.