Jumpseatnews.com - United Airlines flight attendant resources

Home > News > Taxes Withheld from Profit Sharing Deposits Made to Tax Deferred 401(k) Accounts

Taxes Withheld from Profit Sharing Deposits Made to Tax Deferred 401(k) Accounts

print
Source: AFA

Date: Mar 08, 2019

Source: Elines

We have received a number of inquiries from Flight Attendants who elected to have their Profit-Sharing proceeds directed to a tax deferred 401(k) account and are noticing a variety of taxes, including Federal Income taxes, being withheld.

 

While it is true that money directed into a tax deferred 401(k) account is not subject to Federal Withholding, even when directed into the tax deferred 401(k) account, the Profit-Sharing proceeds are subject to FICA (Social Security and Medicare) withholding, CA state disability withholding as well as some other State and Local taxes, where applicable.  

 

Further, the money withheld from the Profit-Sharing payment to pay these FICA, state disability and other taxes is considered wages for the purposes of the Federal tax code.   As a result, the money withheld from the Profit Sharing to pay these various tax and disability amounts is reported as wages and is further subject to Federal tax withholding.  It is for this reason that you will see Federal Taxes withheld from the Profit-Sharing proceeds that have been directed into the 401(k) accounts.

Should you have additional questions, please contact your Local Council office.

Add a Comment

Got a comment or question about the post above? Post below. Please keep in mind that all comments are subject to moderation. By posting here, you agree to all our Terms of Use for Comments.

The views expressed in the contents above are those of our users and do not necessarily reflect the views of Jumpseatnews. By posting here, you agree to all our Terms of Use for Comments.

< Return to Latest News


Printed from www.jumpseatnews.com. Have a nice day!
© 1999-2019 Jumpseatnews.com.  Powered by Cocky. Support Us | Contact Us | United Airlines news from Jumpseatnews