414 H retirement contributions

victory_tea2085January 14, 2007

For the past two years IRS has notified us that we owe additional tax due to my wifes participation in the 414 H retirement plan. We have since learned that this should not be a taxable income. Where do I, or how do I go about disputing this with the IRS? I have searched through an IRS site and can't figure out how to dispute an error on their (IRS) part? BTW, we did submit the 107 dollars for each year. Thanks


Thank you for reporting this comment. Undo

Never heard of a 414H? Can you give detail on what that is?

    Bookmark   January 16, 2007 at 4:11PM
Thank you for reporting this comment. Undo

Thanks for your interest. This is the plan-
What is a section 414(h) pick-up provision plan?

The basic plan is a Money Purchase Plan in which the employer agrees to contribute a specific benefit amount to those employees who meet the eligibility requirements set forth in the plan. The employer then elects to add the provisions of Internal Revenue Code 414(h) that allows governmental employers to "pick-up" employee "mandatory" contributions on a pre-tax basis.

What is the objective of this plan?

It permits public employees to save for their retirement without paying income taxes on the money they save or on any earnings on that money until they are withdrawn.
I cut and pasted this and it does say it's not taxable at this time. We paid a little over $214 to the IRS and shouldn't have- what do we do now? Paul

    Bookmark   January 16, 2007 at 11:41PM
Thank you for reporting this comment. Undo

"it does say it's not taxable at this time."
But was it taxable at the time of your contribution?
Tax laws DO change....

Can you file an amended return?
Have you talked to a tax expert?

    Bookmark   January 17, 2007 at 8:35AM
Thank you for reporting this comment. Undo

can a city or town pull pension money out of 414h fund to pay for retiree benifits because the pension fund is over funded can they do that by law

    Bookmark   February 4, 2009 at 9:35PM
Sign Up to comment
More Discussions
Investing for your Future
I'm wondering if most people today hire financial planners...
Accounting Question
I was hoping there'd be an accounting forum her on...
Buying a new house financial questions?
This seems silly, but I don't have anyone else to talk...
Garrett Financial Network
Does anyone have experience with Garrett Financial...
Home Loan advise? Remodel and Addition
I am looking into a renovation/remodel of my current...
© 2015 Houzz Inc. Houzz® The new way to design your home™