question.jpgIn Federal Income Tax

My employer contributes to my retirement fund. Do I have to pay taxes on those contributions?

Under many retirement plans, employers can make contributions directly. The elective deferral (the amount set aside) is not included in your wages subject to federal income tax; however, these wages will still be taxed for Social Security and Medicare. This rule applies to contributions made to 401(k) plans, thrift savings plans for federal employees, tax-sheltered annuity plans, section 457 plans, and savings incentive match plans for employees, among others.