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dvallada
New Member

We pay into a 457 retirement account. Isn't this tax deductible?

 
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dmertz
Level 15

We pay into a 457 retirement account. Isn't this tax deductible?

None of your 457(b) contributions are deductible on your tax return.  They are either pre-tax contributions excluded by your employer from the amount they report in box 1 of your W-2 or they are nondeductible contributions.

 

Your 457(b) contributions might qualify you for a Retirement Savings Contributions Credit depending on your circumstances.  After you visit the section of TurboTax for this credit, TurboTax will automatically determine the credit.

 

I'm not sure what you mean by "we" pay into a 457 retirement account.  A 457(b) account belongs to an individual employee.  Each employee would have an account that receives contributions on behalf of only that employee.

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5 Replies
LindaA
Expert Alumni

We pay into a 457 retirement account. Isn't this tax deductible?

Contributions to your 457(b) plan are reported on your Form W-2 in Box 12 with Code G. Because these contributions are pre-tax, you cannot deduct them on your tax return.

https://ttlc.intuit.com/replies/3300234


We pay into a 457 retirement account. Isn't this tax deductible?

But what if payments into my 457 are NOT pre-taxed contributions. What if I pay into my 457 from my own funds? Are the payments eligible for a tax credit? 

We pay into a 457 retirement account. Isn't this tax deductible?

depends on the type of 457(b)...

 

if your contributions are going into a designated Roth account withinn the 457(b), then the contributions are not tax deductible; otherwise they should be deductible,

 

Ask your 457(b) Administrator whether your contributions are tax deductible, 

dmertz
Level 15

We pay into a 457 retirement account. Isn't this tax deductible?

None of your 457(b) contributions are deductible on your tax return.  They are either pre-tax contributions excluded by your employer from the amount they report in box 1 of your W-2 or they are nondeductible contributions.

 

Your 457(b) contributions might qualify you for a Retirement Savings Contributions Credit depending on your circumstances.  After you visit the section of TurboTax for this credit, TurboTax will automatically determine the credit.

 

I'm not sure what you mean by "we" pay into a 457 retirement account.  A 457(b) account belongs to an individual employee.  Each employee would have an account that receives contributions on behalf of only that employee.

We pay into a 457 retirement account. Isn't this tax deductible?

And if you made any after tax contributions the plan will keep track of them and when you take a distribution it will be allocated and some will come out tax free.  So you won’t get taxed on them then.  

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