Question

457 deferred compensation w2 income: after entering w2, Turbotax program asking if this was a contribution to the plan or a withdrawal from the plan. I do not understand the question. I am receiving a w2, so is it not by definition a withdrawal?

Forum|Forum|1 year ago
February 25, 2025
1 reply
0 views

No text available

The confusion may lie with how contributions are reported on for a 457 plan. Contributions to these plans are reported on a W2 through payroll deductions. Respond accordingly and indicate it was a withdrawal if you received a distribution from the plan.

457(b) Deferred Compensation Plans

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

J

jreindersAuthor

VictoriaD75, thank you for your feedback. The struggle I am having is that if I answer the TurboTax question stating it is a distribution, then TurboTax Premier Desktop ask me to input a state and some dollar amount for which it does not explain. If I choose the state I live in, CA, and enter the $ amount of the distribution, it reduces by 1/6 the amount of refund I previously showed due. So I am confused why it wants State information and what $ amount I am to input. There is no description. I have had Deferred compensation for at least 7 prior years and TurboTax as never highlighted this request previously.

SusanY1

Are you seeing a change in your federal refund or state? A change in the state refund after entering the state and amount is to be expected, as this is the entry that tells TurboTax the income was associated with your resident state. If you are seeing a change in your federal refund, this is not expected behavior and we may need to assist further with troubleshooting.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"