How does the boss contributing to an employee's 401K benefit??
- 1 decade agoFavorite Answer
Contributions are tax deductible. Earnings grow tax deferred. builds Retirement money. Money not available to creditor in a lawsuit. Keeps his AGI lower so that itemized deductions are not phased out as bad and may end up with some medical expenses that sneak in below the 7.5% of agi and become deductible. there are more reasons, but I 've got to move on.
- kman1830Lv 51 decade ago
Some don't,as a matter of fact there has been and outbreak of where the boss has stolen the employee's 401k,and if you never check on it you won't know till you retire.
- waljac6108Lv 51 decade ago
i would say a tax write off.