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1) Employee works for a German employer.
2) Employee defers $10K of his $100K salary into a German 401K retirement plan. Employee reports taxable wages of $90K. Both the US and Germany respect the salary deferrals and tax only the $90K.
3) Does CA tax the $100K gross wages or does CA tax the $90K? In other words, does CA treat the salary deferrals like it would treat deferrals to a qualifed US plan?