Discussion:Form 8880

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Discussion Forum Index --> Tax Questions --> Form 8880

MsTwizz (talk|edits) said:

23 February 2006

Can a taxpayer who pays into a strs (state teachers retirement system) be eligible for the retirement savings contribution credit?

I have a feeling not, since this is not a federal qualified plan...but I'm hoping so! Thank you!

DR BRISKET (talk|edits) said:

23 February 2006
I believe these are Section 457 plans. IRS Publication 17, page 247, shows these types of plans are eligible for the Form 8880 credit. I hope I'm interpreting this right, because I claim this credit all the time for my eligible clients.

DR BRISKET (talk|edits) said:

23 February 2006
I meant to say "I claim this credit all the time for my eligible clients I have who are in the Kansas Public Employees Retirement System (KPERS). In addition to teachers, city & county employees, emergency workers, law enforcement personnel and state legislators are enrolled in KPERS. That is a large segment of workers. I don't think Congress would exclude such a targeted group of employees from claiming the retirement contribution credit if they otherwise qualify.

MsTwizz (talk|edits) said:

24 February 2006
Yes, your reasoning makes sense to me. I will read Pub 17 as you suggested. Thank you so much for your help.

Nancy 75 (talk|edits) said:

4 October 2007
Form 8880....my tax program will not show credit for SE contribution to SEP. Is this the only "qualified"

retirement plan that does not receive a tax credit, or is my tax program missing this? thank you! TP income under 50K MFJ

Riley2 (talk|edits) said:

4 October 2007
I don't see how PERS or STRS contributions would qualify since these are not really 457(b) elective deferrals.

RSRAGENCY (talk|edits) said:

17 February 2009
Client works in the Charlotte, NC school system. His W2 shows RET in box 14....My question, this is a retirement contribution, but does it have to be 'coded' in box 12 to be qualified for form 8880?

His income is within range...

Thanks, DJ DJ 16:44, 17 February 2009 (CST)

Marty1970 (talk|edits) said:

10 April 2010
See IRC section 25(B)(d). Most of the plans mentioned in this and the other similar thread today sound like section 414(h) 'pickup' plans. And most of those are defined benefit plans featuring mandatory contributions. Many have given names with the words public employees retirement system These are not eligible for the contribution credit, even if they're defined contribution plans. On the other hand 403(b) AKA Tax Sheltered Annuity or TSA does usually have employee elective deferrals described at 402(g). But some 403(b) contributions are not classified as 402(g) deferrals, do not go in box 12 of the W-2, and do not qualify for the contribution credit.

Pegatha (talk|edits) said:

13 April 2013
Any current thoughts on whether PERS (Oregon Public Employees Retirement System) contributions qualify for the retirement credit? I'm thinking not because it's not in box 12 (but is a reduction of taxable income for box 1), just a note in box 14. I guess the idea that it's a mandatory contribution, and not "voluntary" or "elective" per the form instructions also would mean it doesn't qualify. But on the other hand, that sucks. And doesn't seem logical to exclude those types of plans, not that logic has anything to do with it.

STG (talk|edits) said:

14 April 2013
The states are pretty good at this (now - not originally). They put elective deferrals in Box 12 and non-elective are left off, or in 14. The contributions must be elective to qualify. SC, for example, has the SCRS which is mandatory, and thus not qualifying, and something they call the "Money Plus" plan, which is an elective deferral typer 457 plan. They are very good at accounting properly in Box 12. I would do some very careful due diligence before trying for Savers Credit on state plans that are not reported in Box 12.

As for Pegatha's comment - the credit is designed to encourage participation. No need to encourage for mandatory plans.

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