SDCL § 61-1-48: Employer's contributions to certain plans not deemed wages.

As used in this title, the term, wages, does not include the amount of any payment with respect to services performed on behalf of any person in its employ under a plan or system established by an employing unit which makes provision for persons in its employ generally or for a class or classes of persons including any amount paid by an employing unit for insurance on annuities, or into a fund, to provide for any payment on account of:

(1) Sickness or accident disability. However, in the case of payments made to an employee or any one of the employee's dependents, this subdivision excludes from wages only payments received under a worker's compensation law;

(2) Medical or hospitalization expenses in connection with sickness or accident disability;

(3) Death; or

(4) Retirement or pension if the payment is made pursuant to a qualified plan as provided in 26 U.S.C. §§ 401(k), 403b, 408(k), 457, and 408(p), other than any elective contributions under paragraph (2)(A)(i) thereof, as of January 1, 2006.