MN teachers retirement question

[mblatour]

Hi! I have a teacher who's W-2 states in Box 14 (other) the word RETIR and the amount of $2046.80. I thought she may be eligible for the Retirement Credit IF the amount was for a qualified plan.....but rather should have been entered under box 12 with the proper code.


I was wondering if anyone else knew the answer to whether or not a retirement plan with the MN Teacher's Retirement Association qualifies or not.

Here's a paragraph I copied directly from their website:

Tax status

TRA is a qualified plan under section 401(a) of the Internal Revenue Code. Because of this tax status, the Federal and State income taxes on your TRA contributions are tax-deferred. Your membership in TRA could limit or eliminate completely the amount you are able to deduct on your federal income tax return for contributions to an Individual Retirement Account (IRA). Consult with the Internal Revenue Service or review the pertinent IRS *publications with your personal tax advisor before deducting any IRA contributions on your federal income tax return.



Here's the website I found it on :

http://www.tra.state.mn.us/FORMSPUB/WelcomeTRABro.htm

Any thoughts out there?

Becky

[LawrenceGR]

Michigan

has something like that as well. We call MIP and it some kind of defined retirement plan. I have had the same thoughts as you I look foward to hearing what others have to say.

[fliszt]

Info in box 14

is there at the descretion of the employer. It does not affect (in MN) the tax return. Put the info on the software's w-2 and in the 3rd box, choose "other" and go on to the next entry.

[mblatour]

Larry.....

that's what I had planned to do but couldn't help wonder if there had been a mistake and that my client was perhaps eligible for the retirement credit. Always trying to help!

So as far as you know, the teacher's retirement is not qualified? Just want to clear it up for certain. Thanks!

Becky

[David1980]

Most of the teacher's retirement plans I've seen aren't qualified. Primarily because they weren't voluntary. Though I do not know about the MN teachers plan.

[fliszt]

take a look

in box 12. If client is donating into retirement, there should be a code E or G if it's a TIA account 403B or 457.

[mblatour]

Not the case...

so I'm guessing it's not going to fly. Bummer!

[fliszt]

Your software

will fill out an 8880 if you fill out the w2 worksheet correctly. It transfers right over.
Larry

[mblatour]

Larry...

yep, I know. Again, I was just hoping that the employer incorrectly reported it in the Other box 14, rather than box 12, which would flow through and give them the credit. I sometimes don't know why I try so hard.
~B

[Mike Mac]

Had one of those also

mblatour,
I had one of those W-2's about fifty sets of taxes ago. If it slows down, I'll see if I can figure out which one it was. I thought the amount was for the value of some unused sick-leave that was above a certain cap level and therefore transfered over to a type of state medical savings account that can be used in future years to pay for health insurance after retirement. But I am not sure. In any event, it would be tax-free.

Mike

[mblatour]

Mike,

Thanks for the info. I'm going ahead with the return without using the retirement credit, but I thought I'd better see if anyone on here had dealt with a similar situation. It never hurts to check I suppose. If you find the time and come up with anything later on, I appreciate you posting it. I do returns for several other teachers and this may come up again. Thanks again and don't work too hard!

~Becky