Pension W2 and 1099-R

[Romer]

I received my tax documents for thee first year (6 months) of my pension. I have a standard pension on a 1099-R and then there is an excess Pension smaller amount on a W2

I have always known about the two parts as the contributions from my employer exceeded IRS amounts so there is this second portion which is about 10% of the main pension in value

It would seem they are both pension funds. I found this on the internet "It is sometimes proper for your pension to be on a W-2 such as in the case of non-qualified deferred comp types of plans. "

Then since it is a W2, can I use that as income to justify a Roth contribution that doesnt exceed the amount of the W2

Can I treat the W2 part of my pension different for anything else than the 1099-R

The W2 was a surprise, but this is the first year and everything is a learning experience

[jebmke]

NQ pensions reported on W2s are not considered compensation for the purpose of contributing to IRAs.

[SevenUp]

See What Is Compensation?: "The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans)."

[Romer]

Quote:

Originally Posted by SevenUp See What Is Compensation?: "The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans)."

Thanks for the quick response both of you


I see that Box 11 and Box 1 are the same amount so that answers why none of it is income

I appreciate the education and this completely answered my question

[SevenUp]

Quote:

Originally Posted by Romer I see that Box 11 and Box 1 are the same amount so that answers why none of it is income

Just checking: it is income, just as bank interest or "normal" pension payments are income. But it isn't "compensation" so it can't be used to justify IRA contributions.

[Romer]

Quote:

Originally Posted by SevenUp Just checking: it is income, just as bank interest or "normal" pension payments are income. But it isn't "compensation" so it can't be used to justify IRA contributions.

Thanks for the clarification