Tax Type
Individual Income Tax
Description
Salary reduction contributions
Topic
Taxable Income
Date Issued
06-24-1987
June 24, 1987
Re: Ruling Request / IRC §§401(k) and 125
Individual Income Tax
Dear ******************
This is in reply to your letter of March 23, 1987 in which you request information regarding the Virginia income tax treatment of salary reduction contributions to a cafeteria plan (IRC §125) and salary reduction contributions to a cash or deferred arrangement (IRC §401(k).
RULING
Virginia Code §58.1-322 defines Virginia Taxable Income as federal adjusted gross income with certain modifications. Absent specific statutory modifications for the above two items, Virginia income tax treatment is the same as federal income tax treatment. As you requested, a copy of Virginia Code §58.1-322 is enclosed.
If you have any further questions, please do not hesitate to contact me.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner