No. of Recommendations: 0
>>>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.

LOL

TTFN...TiggerToo
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement