Business and Personal Finance Dictionary

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• PRETAX INCOME
  
  Pretax income, sometimes described as pretax dollars, is your gross income before income taxes are withheld. Any contributions you make to a salary reduction retirement plan, such as a 401(k) or 403(b) plan, or to a flexible spending account comes out of your pretax income, reducing your current income and the amount you owe in current income taxes.
  
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