On a 401k are the employer required to take social security taxes out before entering it in your 401k account?
Salary you earn that is contributed to a 401k is subject to social security and medicare tax. Usually, this tax is taken out of your check along with other taxes and the full amount of your contribution goes to the 401k. Check your pay stub and see how the tax is being calculated (the combined rate for SS and Medicare is 7.65%). If your contribution is being reduced by the SS and Medicare, your employer is probably taking SS and Medicare out of your check based on your salary less the 401k contribution. |
