Good evening.
Situation:
In PA, my understanding is all deferred retirement plans are taxable when the income is earned (i.e. 401, 403, 457b plans). Upon disbursements of monies held within a 457b plan, in PA, the payments are reported on a W2. It appears this results in double taxation on the contributions.
Background:
I reside in PA and related employment was in PA. Over a period of several years I contributed to a non-qualified 457b plan. Reviewing corresponding prior year's annual w2's I beleive State and Local taxes WERE withheld and taxes were subsequently each year in conjunction with filing state/local taxes).
In 2021 at age 64, I started to take quarterly 457 b distributions with a five year depletion horizon. Having completed and filed my 2021 taxes via H&R Block I am now having second thoughts regarding the potential for the 457b funds to have been subjected to double taxation (at time of contribution and at time of disbursement). I could understand Net gain being taxed...
Assessment:
Using H&R Block for Fed and State- there did not appear to be a way (in 2022) to report the 2021 457 related payments in a fashion that would avoid double taxation. The 457 payments being reported on a W2, with the Federal and State boxes populated, being a key factor.
The holder of the 457b account (Great West) has been unable/unwilling to provide guidance in this matter. I am unable to get a hold of anyone in the Commonwealth of PA and the Local taxing authority was unable to provide any insights.
If you are familiar with PA's handling of 457B non qualified contributions and subsequent disbursements - I would greatly appreciate your insights. Thank you in advance.
Thanks in advance.
Situation:
In PA, my understanding is all deferred retirement plans are taxable when the income is earned (i.e. 401, 403, 457b plans). Upon disbursements of monies held within a 457b plan, in PA, the payments are reported on a W2. It appears this results in double taxation on the contributions.
Background:
I reside in PA and related employment was in PA. Over a period of several years I contributed to a non-qualified 457b plan. Reviewing corresponding prior year's annual w2's I beleive State and Local taxes WERE withheld and taxes were subsequently each year in conjunction with filing state/local taxes).
In 2021 at age 64, I started to take quarterly 457 b distributions with a five year depletion horizon. Having completed and filed my 2021 taxes via H&R Block I am now having second thoughts regarding the potential for the 457b funds to have been subjected to double taxation (at time of contribution and at time of disbursement). I could understand Net gain being taxed...
Assessment:
Using H&R Block for Fed and State- there did not appear to be a way (in 2022) to report the 2021 457 related payments in a fashion that would avoid double taxation. The 457 payments being reported on a W2, with the Federal and State boxes populated, being a key factor.
The holder of the 457b account (Great West) has been unable/unwilling to provide guidance in this matter. I am unable to get a hold of anyone in the Commonwealth of PA and the Local taxing authority was unable to provide any insights.
If you are familiar with PA's handling of 457B non qualified contributions and subsequent disbursements - I would greatly appreciate your insights. Thank you in advance.
Thanks in advance.