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Asked 1/27/2009

1st time filing taxes with 401k

This is the first year filing with a 401k, Do I receive a w2 like normal or is it complicated? I use turbo tax. Do I need to use a certain version of it? Hoping it doesn't affect my return alot.

 
 
 
 
 
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Answer 1/2 - Submitted 1/28/2009

Money goes into your 401k pretax. You don't actually have to worry about it or show that as income until you actually start pulling money out of it - hopefully after you retire. So, the money you put in reduces your overall income because that money isn't available to you.

 
 

Answer 2/2 - Submitted 1/31/2009

Thanks Mtn...was all worried up till now. All worked out with no problems just like you said. Thanks again!

 
 
 
 
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