Does 401k come out before benefits?

Does 401k come out before benefits?

You fund 401(k)s (and other types of defined contribution plans) with “”pretax”” dollars, meaning your contributions are taken from your paycheck before taxes are deducted. That means that if you fund a 401(k), you lower the amount of income you have to pay taxes on, which can soften the blow to your take-home pay.