Federal Retirement Deductions

Forum|Forum|5 years ago
January 19, 2021
2 replies
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I worked for the IRS in 2020 for the first time. They deducted for 2 different retirement plans, marked TSP-FERS & Retirement on my check stubs. When I received my 2020 W-2, the amount of TSP-FERS shows up in box 12-code D & the same amount is deducted from my gross pay in box 1.

I don't see the other retirement amount on my W-2. The government website says it's a 4.4% deduction for their basic benefit plan. It looks like it is an annuity but It's hard to find much information.

Is this deductible anywhere?

Best answer by Critter-3

First it is not deductible on the return if that is what you want to know ... and the non qualifying contributions may or may not show in box 14 of the W-2 form.

Critter-3Answer

Level 15

First it is not deductible on the return if that is what you want to know ... and the non qualifying contributions may or may not show in box 14 of the W-2 form.

ThomasM125

Level 15

To the extent the contribution is deducted from your wages reported in box 1 on your W-2 form, you are getting a deduction for the contribution, since your wages have been reduced, and that reduces your income tax.

However, the deduction has already been factored into your income as reported on your W-2 form, so you don't get an additional deduction when you prepare your tax return. In other words, all you need to do is enter your W-2 and you get the deduction automatically.

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wtomlemonsAuthor

Level 2

I don't think you understand my question.

I know the contribution marked "TSP-FERS" is taken care of.

It shows up in box 12/code D & wages in box 1 have been reduced.

My question has to do with the separate contribution marked "Retirement".

It doesn't show up anywhere on my W-2.

Critter-3

Level 15

Again it is NOT entered anywhere on the income tax return ... you are buying into an annuity with after tax money just like any other annuity purchase that is not a retirement account. When you take out distributions from this annuity the 1099-R will report how much is taxable and how much is a return of contributions.