Savers Credit

[dmj4]

Does a distribution from a pension that was not a 401K progaram knock the TP out of a 8880 credit? It was a pension that was paid into by the employer at a factory. He did not make any tax deductible contributions into it during his years of employment.

Thanks

[Gretel]

If the factory plan was not one of the now qualified pension plans a distribution from it will not effect the saver's credit.

[dmj4]

How do you tell the difference?

How do you determine if it was a qualified plan or not?

Thanks,
Donna

[dmj4]

Follow-up

Do you just ask them if they ever put money into it themselves or if it was solely funded by the company they worked for?

[Gretel]

I am no expert in retirement plans either. If it was a SEP plan only the employer contributed and it is a qualified plan, which would disallow 8880. So your question would still not be answered.

Can the employer be contacted or does T/P has more information? If no information is attainable present the options to your client and let him decide.

Good luck.