Tax Type
Individual Income Tax
Description
Cafeteria and/or 401K plans
Topic
Taxable Income
Date Issued
06-27-1989
June 27, 1989
Re: Ruling Request / IRC §§125 and 401(k)
Individual Income Tax
Dear
This is in reply to your letters dated March 28, 1989 and May 26, 1989 in which you request a ruling regarding the Virginia income tax treatment of salary reduction contributions to a cafeteria plan (IRC §125) and salary reduction contributions to a cash or deferred arrangement [IRC §401(k)].
The Virginia income tax treatment of these two items has not changed since we first advised you of their treatment June 24, 1987. The federal deduction for these items in computing federal adjusted gross income is reflected in the computation of Virginia taxable income.
If you have any further questions, please do not hesitate to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner