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<<I was wondering how 401K's come into play at tax time.>>

They really don't. Your 401k contributions are NOT included in your W-2 income, so there is nothing that you have to do to "remove" your contributions from your wages.

<< I know that I'm not taxed on any contributions that I put into the account but my question is...how do I report this to the govt?>>

If you look at your W-2 form, you'll find that there is a difference between your taxable wages (box 1) and your SS wages (box 3). That difference is generally the amount of your 401k contribution (because the contribution IS subject to SS taxes, but not income tax). You should also find the amount of your contribution as code "D" in either box 13 or 14 of your W-2 form.

<< I mean I still have to list my gross annual income on the form but there isn't any place (that I know of) to say, "Okay IRS, here is my gross annual income less my 401K contributions which aren't taxed until I withdrawal the monies." Correct me if I'm wrong, but if I don't list this portion of my income, I'll be taxed on the whole without regard to my 401K contributions. Please help or advise.>>

Consider yourself corrected. If you made contributions to your 401k plan, those contributions are not included in your "box 1" taxable wages. Since they aren't reported as wages subject to federal tax, there is nowhere that you have to "back out" the contribution from your tax return.

Make any more sense??

TMF Taxes
Roy
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