Guest Jeff Kropp Posted December 14, 1999 Share Posted December 14, 1999 I have been asked whether certain contributions to a state retirement fund would be considered a prior year contribution for purposes of the maximum exclusion allowance. For example, employees in Illinois can purchase credit for out-of-state work, work with related agencies, or to obtain a service upgrade for prior years. The law refers to the purchase of annuities as a prior year contribution, but I know the IRS has looked at state retirement benefits during the audits I am handling. Any thoughts are appreciated (or cites). ------------------ Link to comment Share on other sites More sharing options...
Carol V. Calhoun Posted December 15, 1999 Share Posted December 15, 1999 Yep. Check out the regulations under 403(B). They include extensive rules for figuring out, for example, what the imputed employer contributions for prior years have been in the case of a state defined benefit plan, in which of course no actual contributions are made to employees' accounts. That's a major reason that some of us are hoping that although the Taxpayer Refund and Relief Act of 1999 was vetoed, its provision abolishing the maximum exclusion allowance will be included in some subsequent legislation. ------------------------------------ Employee benefits legal resource site Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances. Link to comment Share on other sites More sharing options...
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