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414 H retirement contributions

Posted by victory_tea2085 (My Page) on
Sun, Jan 14, 07 at 22:57

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
Paul


Follow-Up Postings:

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RE: 414 H retirement contributions

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


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RE: 414 H retirement contributions

edselpdx;
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for their retirement without paying income taxes on the money they save or on any earnings on that money until they are withdrawn.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


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RE: 414 H retirement contributions

"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?


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RE: 414 H retirement contributions

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


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