Benefit Connections    FAQ
What are pre-tax (before-tax) deferrals?

The pre-tax contribution percentage you elected per pay period is deducted from your gross pay before any federal and state withholding taxes are calculated, thus, saving you tax dollars. Your contribution dollars are then called pre-tax or before-tax dollars. You will not pay any withholding taxes on these dollars until you take a distribution or withdrawal from your 401(k) account.