Can I Exclude Employer Contributions to My 401(k)?

Yes — both your own pre-tax 401(k) contributions and your employer's matching contributions are excluded from your current taxable income. Your contributions are deducted from your paycheck before taxes, reducing your W-2 wages. Employer match contributions go into your account tax-free and aren't reported as income when they're made. All of this money — your contributions and the employer match — will be taxed as ordinary income when you withdraw it in retirement. Roth 401(k) contributions are made after-tax, so they're included in your current taxable income but grow and are withdrawn tax-free later. The total annual limit for all contributions (yours + employer) is $69,000 in 2024 ($76,500 if age 50+).