Question

credit for retirement savings contribution

Forum|Forum|4 years ago
March 23, 2022
2 replies
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Would mandatory post-tax contributions to a state public retirement plan count under the credit for retirement savings contribution for the employee?

B

BillM223

Is this state retirement plan one of the following:

Qualified retirement plan,
IRA,
401(k) plan,
403(b) annuity,
Governmental 457(b) plan, or
501(c)(18) plan
An ABLE account

If not, then no. Otherwise, yes.

Please see the IRS' Interactive Assistant on "Do I Qualify for the Retirement Savings Contributions Credit?"

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B

Beaz29Author

Thank you for the response. It is a defined benefit/mandatory contribution 401(a) provided by the state for state employees.

B

BillM223

"mandatory post-tax contributions to a state public retirement plan " - is this contribution a condition of employment?

Then no, this contribution does not count.

The IRS says, "They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or section 403(b) annuity. For purposes of the credit, an employee contribution will be voluntary as long as it isn’t required as a condition of employment."

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