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>>>I am aware of the law that prevents states from taxing retirement income
from out of state, but a previous post indicated that 457 income is
reported on a W-2, and is not a qualified plan in the same sense that
IRA's and 401k's are. How would anybody know that this is retirement
income and that the no tax on out of state retiement income law
aopplies. If it's reported on a W-2, its taxed as wages and reported as
income from UT isn't it?<<<

Hi Joe:

I think the key wording here is retirement plan. The 457 plan is nothing more than a deferral of income from one year to another, and terchnically is not a retirement plan per se.

The way it works is the money is taken from your wages (after FICA) and invested by your company. Your W-2 shows a reduced amount also. I think the reason it does not qualify as a "Federally Qualified Plan" is due to the lack of discrimination rules and the fact that you become a creditor of your company, and if the company goes broke and you lose your money, the PBGC will not bail you out as in a qualified plan.

Hope this helps.


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