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Lyllian

457b Plan And Traditional Ira Deduction

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Hope someone can help me with this.

 

I work for city government and contribute to a 457b plan. The retirement plan checkbox is not checked on my W2. I checked with our payroll people and asked why and they referenced that it is excluded specifically in the W2 instructions. I've also seen on this forum that with a 457b and the box not checked and no other plans, you can deduct your IRA contribution up to the allowed amount from taxes.

 

My financial planner insists I can't because I contribute to the 457b plan.

 

Can anyone tell me why a 457b is different or point me to documentation that supports this? I've seen that it is considered a "non-qualified" plan but what does that mean?

 

Thanks in advance for any help!

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Hope someone can help me with this.

 

I work for city government and contribute to a 457b plan. The retirement plan checkbox is not checked on my W2. I checked with our payroll people and asked why and they referenced that it is excluded specifically in the W2 instructions. I've also seen on this forum that with a 457b and the box not checked and no other plans, you can deduct your IRA contribution up to the allowed amount from taxes.

 

My financial planner insists I can't because I contribute to the 457b plan.

 

Can anyone tell me why a 457b is different or point me to documentation that supports this? I've seen that it is considered a "non-qualified" plan but what does that mean?

 

Thanks in advance for any help!

 

 

Get a new financial planner who can read. See p 14 of IRS publication 590 which indicates that only plans which are checked in the retirement plan box of a W-2 are covered retirement plans. 457 plans are not retirement plans.

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