--- title: 401(k) and IRA Contributions description: Where can I enter retirement contributions in Scenario Analysis? --- [Skip to content](https://help.holistiplan.com/401k-and-ira-contributions-in-scenario-analysis#main-content) English Show submenu for translations [More support](https://help.holistiplan.com/kb-tickets/new?hsLang=en) [![Holistiplan Logo (800x200 px).webp\]](https://help.holistiplan.com/hs-fs/hubfs/Holistiplan%20Logo%20(800x200%20px).webp?width=160&height=40&name=Holistiplan%20Logo%20(800x200%20px).webp)](https://www.holistiplan.com/) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.holistiplan.com/kb-tickets/new) Holistiplan Knowledge Base - There are no suggestions because the search field is empty. 1. [Help Center](https://help.holistiplan.com/?hsLang=en) 2. [Scenario Analysis](https://help.holistiplan.com/scenario-analysis?hsLang=en) 3. [Retirement Plan Contributions and Distributions](https://help.holistiplan.com/scenario-analysis?hsLang=en#retirement-plan-contributions-and-distributions) # 401(k) and IRA Contributions ## This article walks through how to model employee salary deferrals to a 401(k) and contributions to an IRA in Scenario Analysis For information on how to model contributions to self-employed retirement plans such as a Solo 401(k)s, SEP IRAs, and/or SIMPLE IRAs: **[Where Do I Enter Contributions to Retirement Plans for Self-Employed Individuals?](https://help.holistiplan.com/sep-ira-contributions?hsLang=en)** ### Table of Contents --- [401(k) Contributions](https://help.holistiplan.com/401k-and-ira-contributions-in-scenario-analysis#c401k) [Comparing Traditional (Pre-tax) vs. Roth 401(k) Contributions](https://help.holistiplan.com/401k-and-ira-contributions-in-scenario-analysis#compare) [IRA Contributions](https://help.holistiplan.com/401k-and-ira-contributions-in-scenario-analysis#IRA) ### 401(k) Contributions --- **Note:** The instructions and screenshots below reference **Pre-tax savings deferrals,** and the software has since been updated to better reflect these as **Pre-tax Retirement Deferrals (401k/403b/SIMPLE).**   Employee *pretax* salary deferrals to a 401(k) reduce taxable wages and are modeled on the **Pre-tax Savings Deferrals** line in the [Wages Worksheet](https://help.holistiplan.com/how-do-i-use-the-wages-worksheet?hsLang=en).  ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-08-2026-09-31-43-7275-PM.png?width=591&height=226&name=image-png-Apr-08-2026-09-31-43-7275-PM.png) ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-08-2026-09-58-17-1914-PM.png?width=574&height=294&name=image-png-Apr-08-2026-09-58-17-1914-PM.png) Values modeled here reduce **Gross Wages** to arrive at **Taxable Wages**. Although pretax savings deferrals are exempt from taxable wages and taxation, they are still includedin  **Medicare Wages** and are subject to [payroll (FICA) taxes](https://help.holistiplan.com/how-do-fica-taxes-show-up-in-holistiplan?hsLang=en).  In this example, Peter has $124,000 in gross wages. By contributing $5,000 to his pretax 401(k), he reduces his taxable wages to $119,000, and his Medicare wages remain at $124,000.  Pretax contributions can also be modeled in the [Income Annualizer](https://help.holistiplan.com/income-annualizer?hsLang=en) tool using the same **Pre-tax Savings Deferrals** line.  ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-08-2026-10-33-02-0338-PM.png?width=571&height=417&name=image-png-Apr-08-2026-10-33-02-0338-PM.png) Set an annual maximum contribution amount by clicking **Max**, checking the **Set Annual Maximum** box, and providing the annual maximum amount. This will prevent periodic contributions per paycheck from exceeding the annual amount set.  ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-08-2026-10-33-59-1272-PM.png?width=429&height=264&name=image-png-Apr-08-2026-10-33-59-1272-PM.png)   While not included on the Wages Worksheet, Employee *Roth* salary deferrals to a 401(k) can be modeled in the Income Annualizer on the **Post-Tax Deductions** line. Values modeled here will not reduce taxable wages. Annual maximums can also be set by clicking **Max**.  ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-08-2026-10-37-39-3942-PM.png?width=562&height=410&name=image-png-Apr-08-2026-10-37-39-3942-PM.png)     ### Comparing Traditional (Pre-tax) versus Roth 401(k) Contributions --- To compare the tax effect of making Traditional versus Roth 401(k) contributions, create two scenarios. **Note:** The instructions and screenshots below reference **Pre-tax savings deferrals,** and the software has since been updated to better reflect these as **Pre-tax Retirement Deferrals (401k/403b/SIMPLE).** In the Traditional or Pre-tax scenario, model the traditional contribution amount on the **Pre-Tax Savings Deferral** line as described above. In this example, the taxpayer has Gross Wages of $125,000 and is contributing $10,000 pre-tax to their 401(k). **![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-17-2026-01-22-25-9255-PM.png?width=598&height=401&name=image-png-Apr-17-2026-01-22-25-9255-PM.png)**   In the Roth 401(k) scenario, remove the savings deferral, as Roth contributions are made after tax and do not provide a deduction. Instead, use a [Field Note](https://help.holistiplan.com/field-notes?hsLang=en) to indicate the Roth contribution. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-17-2026-01-26-42-2122-PM.png?width=582&height=388&name=image-png-Apr-17-2026-01-26-42-2122-PM.png)   Once both scenarios are modeled, there should be a $10,000 difference in taxable wages. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-17-2026-01-28-59-8809-PM.png?width=489&height=491&name=image-png-Apr-17-2026-01-28-59-8809-PM.png) The [comparison column](https://help.holistiplan.com/how-do-i-compare-scenarios-in-scenario-analysis?hsLang=en) can be used to quickly view the changes between side-by-side scenarios and will display the tax effect of making Traditional versus Roth 401(k) contributions. ### ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-17-2026-01-28-06-9528-PM.png?width=597&height=359&name=image-png-Apr-17-2026-01-28-06-9528-PM.png) ### IRA Contributions --- Traditional and Roth IRA contributions are modeled in the **IRA Deduction Worksheet** within the **Schedule 1 Deductions** tab. ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-08-2026-10-12-45-4113-PM.png?width=561&height=547&name=image-png-Apr-08-2026-10-12-45-4113-PM.png) ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-09-2026-02-53-04-3212-PM.png?width=544&height=555&name=image-png-Apr-09-2026-02-53-04-3212-PM.png) This worksheet features the client's MAGI, their taxable compensation, maximum IRA contribution amount, and appropriate deduction phase thresholds. To model their IRA contribution, first indicate whether the client is a covered participant in an Employer Retirement Plan using the checkbox. Employer coverage affects phaseout thresholds and may affect the client's maximum contribution amount. For more information on covered participation: [IRS Publication 590-A](https://www.irs.gov/forms-pubs/about-publication-590-a). Once employer coverage is indicated, model their contribution amount on the **Traditional or Roth IRA Contribution** line. 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