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posted Jun 4, 2019 8:15:46 PM

Does the amount shown in box 14- Maine State Retirement System qualify for the retirement savings contribution credit? If my employer contributed for me?

I believe that the difference is box 5 on my w2 minus box 1. Im just unsure if this qualifies or not?

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1 Best answer
Level 3
Jun 4, 2019 8:15:48 PM

The contribution in box 14 of your W-2 to the Maine state retirement system does not qualify for the retirement savings contribution credit. 

Here's why: The Maine Public Employees Retirement System (MainePERS) is a federally qualified defined benefit plan under IRS Code Section 401(a). Contributions to defined benefit plans under 401(a) that are funded by the employer do not qualify for the retirement savings contribution credit, so the contributions to MainePERS on your W-2 do not qualify for this credit. 

3 Replies
Level 3
Jun 4, 2019 8:15:48 PM

The contribution in box 14 of your W-2 to the Maine state retirement system does not qualify for the retirement savings contribution credit. 

Here's why: The Maine Public Employees Retirement System (MainePERS) is a federally qualified defined benefit plan under IRS Code Section 401(a). Contributions to defined benefit plans under 401(a) that are funded by the employer do not qualify for the retirement savings contribution credit, so the contributions to MainePERS on your W-2 do not qualify for this credit. 

Level 2
Feb 4, 2021 2:25:32 PM

I have a related question.  I am a retired Maine state employee and am working on my 2020 state tax return in TurboTax.  On the "Previously Taxed Retirement Benefits" page, it says to subtract the amount in box 14 of the 1099-R from box 2a.  If I do that, I get a large deduction, much larger that previous  years.  The instructions on the Maine I-File site say to  subtract the amount in box 16  from box 2a, which gives a smaller result consistent with past years.  Is this an error in the TurboTax instructions?

Level 2
Feb 11, 2021 7:40:16 AM

I agree this is a Turbo Tax error. Box 16 should be used to calculate the amount of previously taxed retirement benefits.  Both my wife and I have MEPERS pensions.  I used box 16 for the calculation. I hope Intuit is monitoring this Board and updates the program! It's a significant error!