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Do Financial Reviews take into acct 401k Deductions?

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Johnny_Favorite
Regular Contributor

Do Financial Reviews take into acct 401k Deductions?

Say somebody makes 100k a year and reports that to AMEX. But they contribute 15K a year to their 401k, essentially making their taxable income 85k. Would Amex forgive this or would they pretty much say you lied about your income?




Message 1 of 9
8 REPLIES 8
bs6054
Valued Contributor

Re: Do Financial Reviews take into acct 401k Deductions?

That's a rather strange question!

 

Of course your income is correctly stated as $100K.   If you are concerned about 401K, what about income taxes as well, they usually cause a much greater reduction in take-home pay.

 

If your employer pays you X, that is your salary....

Message 2 of 9
E150GT
Frequent Contributor

Re: Do Financial Reviews take into acct 401k Deductions?

I am no expert but just because you dont pay taxes on that 15k, that doesnt mean it isnt income. And, I dont recall Amex asking me for taxable vs non taxed


CSP-$8700, Amex BCE-17.2k, Chase Freedom-$5700
Discover It-$6600, USAA MC-$5900 Ink Bold- $12k United Explorer-$5k
Message 3 of 9
antae
New Contributor

Re: Do Financial Reviews take into acct 401k Deductions?

If they ask for your income that was 100k

Amex BCP 25k '11 - Amex PRG '11 - Chase Sapphire 17.5k '95 - Citi Platinum Select 11.5k '93
Message 4 of 9
Johnny_Favorite
Regular Contributor

Re: Do Financial Reviews take into acct 401k Deductions?


@bs6054 wrote:

That's a rather strange question!

 

Of course your income is correctly stated as $100K.   If you are concerned about 401K, what about income taxes as well, they usually cause a much greater reduction in take-home pay.

 

If your employer pays you X, that is your salary....


 

I was just wondering because your W2 would show different than what you claimed. Your w2 wouldn't show 100k.

 




Message 5 of 9
bs6054
Valued Contributor

Re: Do Financial Reviews take into acct 401k Deductions?

Well, the W2 does, you just have to look in various places on the form

Message 6 of 9
antae
New Contributor

Re: Do Financial Reviews take into acct 401k Deductions?

Looking at my w2 (federal one):

 

box 1 wages, tips

box 3  social security wages

box 5 medicare wages

 

 

you can see the following

box 1 (wages - 401k contribution)

box 3 & 5 (wages + 401k contribution)

 

 

So if amex has issues with your wages then this is what they are going to see.

Of course if they are looking at box 1 you can instruct them to look at box 12 which will have a code D which is your 401k contribution

Amex BCP 25k '11 - Amex PRG '11 - Chase Sapphire 17.5k '95 - Citi Platinum Select 11.5k '93
Message 7 of 9
Sevenfeet
Regular Contributor

Re: Do Financial Reviews take into acct 401k Deductions?

Income in this context is always gross income (before taxes, contributions, etc).  Their financial models already take into account that $100K really isn't $100K you take home.

Message 8 of 9
Johnny_Favorite
Regular Contributor

Re: Do Financial Reviews take into acct 401k Deductions?

Thanks a plenty mil mascara




Message 9 of 9
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