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jreinders
New Member

457 deferred compensation w2 income: after entering w2, Turbotax program asking if this was a contribution to the plan or a withdrawal from the plan. I do not understand the question. I am receiving a w2, so is it not by definition a withdrawal?

 
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2 Replies
VictoriaD75
Employee Tax Expert

457 deferred compensation w2 income: after entering w2, Turbotax program asking if this was a contribution to the plan or a withdrawal from the plan. I do not understand the question. I am receiving a w2, so is it not by definition a withdrawal?

The confusion may lie with how contributions are reported on for a 457 plan. Contributions to these plans are reported on a W2 through payroll deductions. Respond accordingly and indicate it was a withdrawal if you received a distribution from the plan.

 

457(b) Deferred Compensation Plans

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jreinders
New Member

457 deferred compensation w2 income: after entering w2, Turbotax program asking if this was a contribution to the plan or a withdrawal from the plan. I do not understand the question. I am receiving a w2, so is it not by definition a withdrawal?

VictoriaD75, thank you for your feedback.  The struggle I am having is that if I answer the TurboTax question stating it is a distribution, then TurboTax Premier Desktop ask me to input a state and some dollar amount for which it does not explain.  If I choose the state I live in, CA, and enter the $ amount of the distribution, it reduces by 1/6 the amount of refund I previously showed due.  So I am confused why it wants State information and  what $ amount I am to input. There is no description.  I have had Deferred compensation for at least 7 prior years and TurboTax as never highlighted this request previously.

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