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457 On W2s

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Okay, so why does the IRS want these reported in this fashion?

 

One possible reason:

Deferrals into a 457(b) plan do not affect or limit your options for making an IRA contribution, but participation in a retirement plan does.

 

That's my guess anyway.

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Have you read the instructions to the W-2 form?

 

 

Of course I have read the instructions. They tell you not to check the box, but what I wanted to know was WHY?

 

 

Okay, so why does the IRS want these reported in this fashion?

 

One possible reason:

Deferrals into a 457(b) plan do not affect or limit your options for making an IRA contribution, but participation in a retirement plan does.

 

That's my guess anyway.

 

 

 

Thanks! Just seemed strange that it's not really considered a "retirement" plan when it looks almost exactly like a 401(k) - and you can even roll it into a 401(k) now. I didn't know about the IRA part- thanks for the clarification.

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Have you read the instructions to the W-2 form?

 

 

Of course I have read the instructions. They tell you not to check the box, but what I wanted to know was WHY?

 

 

Okay, so why does the IRS want these reported in this fashion?

 

One possible reason:

Deferrals into a 457(b) plan do not affect or limit your options for making an IRA contribution, but participation in a retirement plan does.

 

That's my guess anyway.

 

 

 

Thanks! Just seemed strange that it's not really considered a "retirement" plan when it looks almost exactly like a 401(k) - and you can even roll it into a 401(k) now. I didn't know about the IRA part- thanks for the clarification.

 

 

 

Only govt 457b plans can be rolled over because they are regarded as the equivalent of a 401k plan for govt entities who cannot establish a 401k plan. 457b plans of a NP cannot not be rolled over and must be distributed to the participant. 457f plans cannot be rolled over.

 

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