Retirement Contribution Tax Credit

[mylo1948]

Do I qualify for the Retirement Contribution Credit if I have a 401A. The contributions are listed in box 14 with no code letter so the program does not recognize it. The contributions ate tax deferred and I meet the income guidelines, shouldn't my contributions be listed in box 12 with a code?

[ColeenD3]

Maybe.

401(a) Plans

Whether or not a 401(a) plan qualifies depends on the type of 401(a) plan it is. Technically, any qualified pension plan is a 401(a) plan. This means that a 401(k) plan is also a 401(a) plan, kind of like how a square is also a rectangle. However, when a taxpayer uses 401(a) to refer to an employer-funded plan, such as a profit-sharing plan or an employer-funded defined benefit plan, the rules are a little different because he can't claim the credit for money someone else puts into his plan for him.

[dmertz]

No.  The fact that your employer listed the amount in box 14 as informational indicates that these are not 401(k) contributions deducted from your pay.

See IRS Pub 590-A Chapter 3 for the types of retirement contributions that qualify:

https://www.irs.gov/pub/irs-pdf/p590a.pdf

[mylo1948]

Thanks for your response. In this situation though, the employee made the contribution, and it reflects it by having Box 1 shows the tax deferred amount and box 3 shows the actual amount they earned for the year. (Box 1 =$36,500, box 3= 40,000. $3,500 contributed to the 401A) The employer shows the $3500 contributed in box 14 instead of box 12 with no code of course. The software program does not pick the contribution credit up because it's in box 14 with no code!! Married filing joint they should qualify for the Retirement Savings Contribution Credit but because it's shown in box instead of 12 I don't know what to do! Please advise!

[mylo1948]

Box 3 amount is different exactly like a contribution to a 401k, i.e., box 1=$36,500 box3=$40,000 (of which tells me she contributed $3,500 to the 401A) She works for a govt. agency so it's deemed a 401A. My belief is the accounting firm should have put the amount in box 12 with a code D but that's reserved for a 401k??!! It seems she should qualify for the Retirement Savings Contribution Credit because she files mfj and would qualify for the income criteria but because it's in box 14 with no code I don't know what to do. Thanks!!

[dmertz]

The definition of a "qualified retirement savings contribution" in section 25B of the tax code does not include a 401(a) contribution that is not a 401(k) contribution.  TurboTax is correct not to include the box 14 amount in the calculation of the credit.

[mylo1948]

Thanks!