95-066
Response
October 3, 1995
Request
XXXXX
UTAH
STATE TAX COMMISSION
210
North 1950 West
Salt
Lake City, Utah 84134-0180
Dear
XXXXX:
Could
you please provide written assistance with the following question regarding
Utah withholding tax regulations. One of our clients, located here in Houston,
has several employees in Utah. The client has recently decided to start a 401K
Plan for it's employees and has the following question. Is the part of gross
wages that is contributed to the 401K Plan by the employee subject to Utah
State Income Tax at the time of the contribution or is it deferred?
Please
send your response to the address listed below. Thank you in advance for your
help.
Sincerely,
XXXXX
XXXXX
RE: Advisory Opinion - Employee contributions to
a 401K Plan.
Dear
XXXXX,
In
response to your inquiry regarding application of Utah income tax laws to your client's
401K Plan, we offer the following information:
Since
employee contributions made to a 401K Plan are tax deferred for federal income
tax purposes, those contributions are also deferred for Utah income tax
purposes.
If
you have further questions, please write to this office again or call our
Technical Research Section at XXXXX.
For
the Commission,
Alice
Shearer
Commissioner