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Level 1
posted Jan 20, 2023 5:52:04 AM

Pension contributions backpay

I'm enrolled in a qualified pension plan, but they didn't process my paperwork for several paychecks, so I owed 7 paychecks' worth of backpay contributions. I just paid them. I'm wondering if anyone knows how to account for this on my taxes, since the pension payments are supposed to be pre-tax, but I paid them with after-tax money just now, since it was backpay. I can't find any info about this on my pension plan website. 

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4 Replies
Level 15
Jan 20, 2023 7:33:50 AM

@dmertz will probably be able to address your question. Check back.

Level 15
Jan 20, 2023 8:29:01 AM

Sounds like my husband's pension.  He got to buy extra time.  The after tax money he sent in is tracked by the pension and a part of each retirement check he gets is not taxable.  The 1099R he gets at the end of the year breaks it out.  Ask the pension plan.  You don't account for it when you paid it in.  It's when you take it out you shouldn't pay tax on it again.  The plan knows and should report it right.  

Level 1
Jan 20, 2023 1:16:25 PM

I asked the plan if they had any guidance pamphlets about what to do or if they issued paperwork to file with taxes and they just said no they don't do any of that.

Expert Alumni
Jan 24, 2023 12:07:15 PM

One more point to consider is that your wages may account for this when your receive your W-2 for 2023.  This is something else you can check with your employer payroll agent about. 

 

Otherwise @VolvoGirl may have the long term solution.