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Is Teacher retirement system of Texas a qualified plan

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Is Teacher retirement system of Texas a qualified plan

Yes, Texas TRS retired pay is a Qualified Plan.

Per the Teacher Retirement System of Texas Benefits Handbook, https://www.trs.texas.gov/TRS%20Documents/benefits_handbook.pdf, page 2:

The plan is administered as a qualified governmental retirement plan under the provisions of Section 401(a) of the U.S. Internal Revenue Code of 1986, as amended. In addition, monthly member contributions are made on a pre-tax basis, meaning that at the time you receive your salary, you do not pay federal income tax on the portion of your salary used to make the contributions. Federal income tax on the contributions and interest is deferred until you receive a distribution from TRS, such as a refund or a retirement annuity. Amounts accumulated in your member account or your retirement benefits become taxable income in the years in which they are paid to you. As a governmental plan, TRS is not an “ERISA” plan under the federal Employees Retirement Income Security Act of 1974.

To enter form 1099-R, click on Where do I enter my 1099-R?

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