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Dave M22
New Member

State ID Error message on W-2 related to 457 nonqualified distribution

My daughter's return is getting a Federal Review error message on a W-2 related to a 457 nonqualified distribution (received because she changed jobs).  The official Payor is a Life Insurance company located in Iowa.  Box 11 lists the state as GA, which we assume is because that is where the previous employer was located.   Box 15 shows the state as IL, my daughter's current legal address and address to where the distribution check was mailed.  The W2 also shows Wages in Box 16 and a state income tax payment amount in Box 17.  Her Federal Review generates an error message indicating the "Nonqualified Distribution (State ID) does not match with any states entered in Box 15."  Is it OK to just change Box 11 to "IL" to match box 15 or will that cause some type of reporting issue with the IRS? 

 

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