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Discussion Forum Index --> Tax Questions --> HELP!! deferred compensation 457 Plan
Cindylee (talk|edits) said:
| 15 April 2008
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| I have a client that paid $31,000 into her 457 plan which is $10,500 more than the catch-up provision allows. How do I handle the $10,500 on her 2007 taxes? I believe that the gross wages will be understated by this amount. How do I handle this on the tax return?
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TaxFlake (talk|edits) said:
| 15 April 2008
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| Assuming your facts are correct as I am not up on these rules, I would tell the client to call the pension fund and have the excess funds pulled out, or recategorized to 2008, or whatever remedies are available. W-2 should probably be corrected. File extension calculating tax on +$ 10500 to be safe. Again, I'm not up on these rules. Good luck.
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Riley2 (talk|edits) said:
| 16 April 2008
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| There are actually 2 separate catch-up amounts in a Sec. 457 plan. There is the 457(b)(3) catch-up which can be as much as $31,000 in 2007. There is also a Sec. 414(v) catch-up which can be as much as $20,500 in 2007..
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