Are 401(play) Contributions To My VFA Tax-free Or Tax-deferred?
Your Vacation Funding Account is post-tax.
401(play) Customer Success Guru
Last Update il y a 5 mois
No, and here is why that is actually good news.
Your 401(play) Vacation Funding Account is funded with post-tax dollars, meaning contributions come from your net pay after taxes have been withheld.
Here is what that means:
When benefits are taken out of your paycheck before taxes, the IRS places rules on how that money can be spent. It has to go toward specific, approved expenses.
Your employer chose this approach on purpose. The goal of 401(play) is to help you take real vacations, and that means giving you the freedom to spend your benefit however you choose.
The bottom line:
Your 401(play) prepaid MasterCard is loaded with money that is truly yours to use. Book the flight, reserve the hotel, plan the road trip. Whatever your next vacation looks like, your account is ready when you are!
Your 401(play) Vacation Funding Account is funded with post-tax dollars, meaning contributions come from your net pay after taxes have been withheld.
Here is what that means:
When benefits are taken out of your paycheck before taxes, the IRS places rules on how that money can be spent. It has to go toward specific, approved expenses.
Your 401(play) account works differently. Because contributions are made after taxes, there are no spending restrictions, no approved expense lists, and no paperwork to justify how you use it.
Your employer chose this approach on purpose. The goal of 401(play) is to help you take real vacations, and that means giving you the freedom to spend your benefit however you choose.
The bottom line:
Your 401(play) prepaid MasterCard is loaded with money that is truly yours to use. Book the flight, reserve the hotel, plan the road trip. Whatever your next vacation looks like, your account is ready when you are!