Does ipers qualify for savings retirement contribution credit

Forum|Forum|7 years ago
June 7, 2019
1 reply
1 view

No text available

TurboTax Deluxe Online

BillM223

Level 15

According to the IRS instructions and the IPERS handbook, the answer is "no". It is the wrong type of plan.

The IRS says:

"The Saver’s Credit can be taken for your contributions to a traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans." -

The IPERS handbook states:

"IPERS is a “defined benefit retirement” plan that has a “qualified plan” status under
federal Internal Revenue Code Section 401(a). It is also exempt from taxation under IRC
Section 115."

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

nrhamilton10

Level 2

This makes a lot of sense to me. Can you confirm though that we should be deducting the amount the employee contributes to IPERS from their income for the year? Similar in function to a 401k plan where you'd reduce income for the amount contributed to the 401k, 403(b), etc.

Thanks!

KrisD15

Level 15

Yes, that's what exempt from taxation means, it is "before tax" Subtracted from taxable income.

"IPERS is a “defined benefit retirement” plan that has a “qualified plan” status under
federal Internal Revenue Code Section 401(a). It is also exempt from taxation under IRC
Section 115."

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