topic Elective Deferral Retirement Plans in Deductions & credits

Elective Deferral Retirement Plans

swmbke — Wed, 17 Mar 2021 22:34:17 GMT

I work for two cities part time and have elective deferral 457 Retirement Plans. on W-2 box 12a code G.Is it the same as 401K? Is this a savers credit.Where on free intuit Turbotax do I include this?

Re: Elective Deferral Retirement Plans

MaryK4 — Thu, 18 Mar 2021 01:33:02 GMT

457 plans are non-qualified, tax-advantaged, deferred compensation retirement plans offered by state, local government and some nonprofits.

The Savers Credit gives a special tax break to low- and moderate-income taxpayers. This credit is in addition to the other tax benefits for saving in a retirement account. If you qualify, a Savers Credit can be applied to your tax liability. A 457 plan qualifies as a retirement plan. TurboTax will automatically ask you the questions if you qualify.

What is the 2020 Saver's Credit?

Re: Elective Deferral Retirement Plans

swmbke — Sun, 21 Mar 2021 22:34:33 GMT

Thank you that was helpful, but the online Turbotax only gave credit at 10% when I am in the lower income bracket.

Re: Elective Deferral Retirement Plans

DaveF1006 — Sun, 21 Mar 2021 23:07:46 GMT

The savers credit is a $1000 maximum amount. Please read the following Turbo Tax article for further information. this may be a couple of reasons why your credit was limited.

The biggest credit amount a married couple filing jointly can claim together is $2,000. $1000 if filing single.
But, if you and/or your spouse took a taxable distribution from your retirement account during the two years prior to the due date for filing your return (including extensions), that distribution reduces the size of the Savers Credit available to you.
The Savers Credit is a 'non-refundable' tax credit. That means this credit can reduce the tax you owe to zero. This means it may either provide a full credit or a partial credit.

Re: Elective Deferral Retirement Plans

dmertz — Mon, 22 Mar 2021 16:22:25 GMT

A 457(b) plan provided by the city would be a governmental 457(b) plan which would make it a qualified plan. 457(b) plans provided by non-profit organizations would be non-qualified plans.