tip income and 401k contributions


B Wall

I work in a casino in a tipped position. I have been
putting 15% of my income into a 401k account, this has
included my wages and tips. The casino was recently sold and
the new owner does payroll differently. They now put 15% of
my wages into the 401k, but not any of my declared tip
income. When I asked why my tips were not included in my
401k contibution I was told that they couldn't "because of
taxes". This makes no sense to me as the previous owners did
it. I do not have any other retirement plan and my wage is
very small. I need to set aside more for my retirement.
Does anyone know where I can find the information about tip
income and 401k contibutions. I want to try to negotiate
with my employer to see if they will reconsider their stand
on tip income contributions, but I need solid facts or IRS
rulings to back me up. Many casino employees are in tipped
positions, and all of us are in the same boat at this


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