Is Icon a pre-tax account? Why are the contributions post-tax?

All contributions to Icon accounts are made on a post-tax basis. However, Icon is a traditional IRA, a pre-tax account. The tax advantage is realized when the employee files their income tax return; the employee can indicate the amount contributed to their Icon account for the tax year, and generally, their gross income will be reduced by the amount contributed.
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Payroll contributions and discretionary bonuses will not appear on the employee’s W2.
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The employee’s contribution amount needs to be configured in your payroll system as a ‘generic’ or ‘other’ after-tax deduction.
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If you have a discretionary bonus program, the post-tax bonus amount is what you need to facilitate into the employee’s Icon account as a one-time contribution.
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In the above example, the employee’s total contribution amount will be displayed in the Icon platform (under Manage Contributions→ Contributions) and on their Icon account statement. Icon contributions will not be displayed on their W2.
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If the employee makes a withdrawal from their Icon account during the tax year, they will receive a Form 1099 to include with their tax filing documents.
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