Christine Roberts Posted December 6, 2001 Share Posted December 6, 2001 Is it true that some states will not recognize, as deductions from state income taxes, the full amount of the new EGTRRA contribution limits? Wouldn't ERISA preempt any contrary state income tax laws?? Link to comment Share on other sites More sharing options...
david rigby Posted December 6, 2001 Share Posted December 6, 2001 ERISA pre-emption does not apply to taxation of income at the state level. It is very likely that some states will not have brought their tax laws into agreement with EGTRRA. (This happens every time Congress makes a change.) I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
Guest shafter Posted December 7, 2001 Share Posted December 7, 2001 You also have to be concerned that some or all of the new rollovers may be tax deferred at the federal level but not at the state level (among other things) The Fidelity memo regarding Massachusetts non-conforming issues is rather frightening. There has been a discussion of some of these issues on a catch-up contribution question also on this board. Link to comment Share on other sites More sharing options...
Guest merlin Posted December 12, 2001 Share Posted December 12, 2001 This has happened before. Back in the late 70's/early 80's New York did not recognize defined benefit Keogh plans (anyone remember them?). Any contributions in excess of $7500 were not deductible and had to be added back by the participant to his/her taxable income. Link to comment Share on other sites More sharing options...
Guest JB2 Posted December 14, 2001 Share Posted December 14, 2001 Shafter -- do you have a copy of the Fidelity letter? Link to comment Share on other sites More sharing options...
Guest shafter Posted December 17, 2001 Share Posted December 17, 2001 Since, I am not confident of my ability to send you to add the address of another thread here, if you search on my name you will find another thread called catch up contributions where another user (belgarath) posted the documents. Link to comment Share on other sites More sharing options...
Dave Baker Posted December 18, 2001 Share Posted December 18, 2001 http://benefitslink.com/boards/index.php?showtopic=12214 Link to comment Share on other sites More sharing options...
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