### Question
How does Income Taxes define accumulated deductible employee contributions?


### Answer
Under *26 U.S.C. § 72*, **accumulated deductible employee contributions** is defined as:

> the deductible employee contributions—


(i) increased by the amount of income and gain allocable to such contributions, and


(ii) reduced by the sum of the amount of loss and expense allocable to such contributions and the amounts distributed with respect to the employee which are attributable to such contributions (or income or gain allocable to such contributions)

#### Citation:
  - *26 U.S.C. § 72*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART II-ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME**

