Question

457 non-payroll required contribution

Forum|Forum|2 years ago
April 11, 2024
1 reply
0 views

Greetings! My husband changed employment from a county to the state - He rolled over his 457, but with the state he had a required contribution to get on track within their system. We made a contribution of $19k, in June '23 -- Is there a way we can now claim this on our 2023 tax submission?

M

mglauner

Per Champ @Opus17 :

"You do not get a tax deduction now, but the plan administrator will keep track of your basis in the account and this will reduce the amount of tax in the future.

For example, if 10% of your contributions were made after tax, then 10% of your withdrawals when you retire will be exempt from tax. You can confirm this by calling the account custodian."

When you begin taking distributions from your retirement plan, your Form 1099-R will reflect a non-taxable amount, relevant to the after-tax contribution amount.