Retirement Savers Credit

[WhiteOleander]

Do you have to reduce the contributions by distributions from a plan that is not an eligilbe plan for the credit.

T/P is contributing to a 401K. He can have the credit. But, the spouse is taking distributions from her Teachers Retirement. Her participation in the plan was not elective, it was mandatory. So, it would not have qualified for the credit when she was working. The Teacher Retirement website says the plan is a 401A (17). If I understand correctly, her distributions do not have to be considered when figuring the credit.

Who say yea? Who says nay?

[Gretel]

Yea, yea, yea, almost 15th of April, hey!

I agree, teachers non-qualified distributions don't interfere with credit. Also, spouse distributions don't interfere with taxpayers.

[DaveO]

I say nay.

[WhiteOleander]

I say nay.

Just to be contrary. Or because it is a qualified dstribution?

[Jesse]

Agree: Yea, yea, yea, almost 15th of April, hey!


Not sure: I agree, teachers non-qualified distributions don't interfere with credit.

I don't see your plan number: http://www.irs.gov/publications/p590/ch05.html

Disagree: spouse distributions don't interfere with taxpayers.


Distributions received by spouse. Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit.

[DaveO]

I say "nay" they don't have to be entered.

"Do you have to reduce the contributions by distributions from a plan that is not an eligilbe plan for the credit."

The answer to the question is "No".

[Gretel]

Agree: Yea, yea, yea, almost 15th of April, hey!


Not sure: I agree, teachers non-qualified distributions don't interfere with credit.

I don't see your plan number: http://www.irs.gov/publications/p590/ch05.html

Disagree: spouse distributions don't interfere with taxpayers.


Distributions received by spouse. Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit.

Just learned something again.