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IRS.gov Website
Publication 571
taxmap/pubs/p571-002.htm#en_us_publink1000239615

What Are the Benefits of Contributing to a 403(b) Plan?(p2)

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There are three benefits to contributing to a 403(b) plan.
taxmap/pubs/p571-002.htm#en_us_publink1000239616
Excluded.(p3)
If an amount is excluded from your income, it is not included in your total wages on your Form W-2. This means that you do not report the excluded amount on your tax return.
taxmap/pubs/p571-002.htm#en_us_publink1000239617
Deducted.(p3)
If an amount is deducted from your income, it is included with your other wages on your Form W-2. You report this amount on your tax return, but you are allowed to subtract it when figuring the amount of income on which you must pay tax.