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Question

Asked 11/28/2008

Is an auto allowance payment eligible earnings for 401k contributions?

My company withheld 401k contributions from my monthly auto allowance payment. Is that considered "eligible earnings?"

 
 
 
 
 
Answers

Answer 1/2 - Submitted 11/29/2008

Depends on how your company treats this. If it a reimbursement account, and you have to itemize your expenses, then it is not income. If it is money they give you to use as you see fit, it does sound like income; i.e., eligible earnings.

 
 

Answer 2/2 - Submitted 11/29/2008

It is possible that instead of making you itemize, they give you a flat amount per day to cover auto mileage, maybe even meals and hotels. This is also really a reimbursement for expenses you have related to your work, and not extra income.

 
 
 
 
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