Pre-tax contributions are deducted from your pay before Social Security and federal income taxes, as well as most state and local taxes, are withheld. When you use pre-tax dollars to pay for benefits, your taxable income is reduced and you pay less taxes. Close Window

Contributions to a tax-advantaged account made with money on which income taxes have not yet been paid.

Money you elect to contribute to purchase additional benefits beyond the dollar amount that your employer contributes on your behalf. This includes additional money you contribute to a reimbursement or spending account. Pre-tax contributions are deducted from your pay check before payroll withholding taxes are taken, reducing your taxable income.

Regular amounts contributed from payroll deduction on or after July 1, 1986. These amounts are "tax-deferred," that is, they are deducted from the member's pay before income tax withholding. The member is taxed on pre-tax contributions when the ASRS pays a refund or benefit.