Tax on Performance Bonus Hi, I have deferred 80% of my performance bonus towards 401K contributions and I have adjust my monthly contribution such that monthly contribution + performance pay rounds off to the max limit that the govt has set.
When I received my performance pay statement, I noticed that my company had taxed me for it while my impression was that 401K contributions within the max limit are not taxed. Please tell me if I have got this all wrong. |