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Do payments under or to a tax-sheltered annuity plan count as wages?

1340. Do payments under or to a tax-sheltered annuity plan count as wages?

Tax-sheltered annuity payments do not count as wages if:

  1. The payments are made under a plan that meets the requirements of section 403(b) of the IRC for income tax deferral; and

  2. You do not make the payments under a salary reduction agreement.

Last Revised: March, 2001


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