457b question

[TN76]

I am a municipal employee and we have a pension. I was asked a question for the first time this year that I do not know the answer to. Hopefully someone can help. After entering my W2 info it asks me the following question: "Did you elect to have your employer make contributions to your deferred compensation plan?" I do get a pension deduction from my paycheck. Not sure how the rest of it works.

Thank you in advance!

-TN 

[BillM223]

The question is trying to determine if the contributions qualify you for the Saver's Credit. Eligible contributions are those that you make by payroll deduction (which is what it sounds like in your case). Contributions made by your employer are not eligible.

So if you authorized your employer to take the contributions to the 457(b) out of your paycheck by means of payroll deduction, you would answer "NO" to "Did you elect to have your employer make contributions to your deferred compensation plan?"

NOTE, there are other requirements for the Saver's Credit, so you might not qualify for it anyway.

[TN76]

Thank you. Yes they take it out as a payroll deduction. I am pretty sure they also contribute to it as well and we (employees) pay a percentage based on years in etc.