contributions to 401(k)

Hi,

I was wondering if anyone here knew the contributions I am making to my 401(k) back in the US are done pretax or post tax?  I am hoping it is done pretax, but I was never asked by my UK payroll dept.  I am getting paid in £, but I still have my US benefits, so I still contribute to my 401(k). 

I know I should ask my payroll dept here, but I don't think they would know.  Most questions I have asked them so far, they have not been able to answer so I was hoping someone here would know.

Thanks.
bvamin

401k contributions in the US are done pre-tax, meaning that you only pay tax on the remaining potion of your salary (less medical benefits, etc.).

So, if you are making $1000 a week, and you are contributing 10% to your 401k, you would get $100 put in your 401k and pay taxes on $900.  When you retired, you would then pay income tax on 401k money you are withdrawing.

However, if you are getting paid here in ££, you may still have to pay UK tax on that portion you are contributing to the 401k.  But I am not sure on that one.

401K plan is a not a correspondingly approved plan for UK purposes. Therefore If you do not have approval from Inland revenue, you are paying you contributions after tax. Also you can not deduct this from your taxable income to calculate your UK taxes when you file your UK return!!! unfair , I know....