FICA Elective deferrals - States that do/don't track Code

[Guest CJA]

Is anyone aware of a chart that shows wich states do/dont follow federal law w/r/t/ FICA treatment of 401(k) deferrals? I seem to recall a chart maintained by Northern Trust w/r/t/ states that required withholding on plan distributions.

[Lori Friedman]

Unfortunately, I've never located such a chart or other document. I always end up doing the research on a state-by-state basis.

Your post refers to 401(k) deferrals, but it's worth mentioning that a state may have different laws governing different types of deferred compensation. For example, a state might treat 401(k) deferrals in one manner while treating 403(b) and 457(b) deferrals under other rules (if I recall, New Jersey is a good example).

[WDIK]

(if I recall, New Jersey is a good example).

...or a bad one, depending on your point of view.

[Belgarath]

Can you elaborate a bit on the FICA question? I know that some states don't permit the same deduction for elective deferrals in some circumstances, but I thought FICA was a federal mandate. I didn't realize there was a choice on this. However, I'm probably misunderstanding the question, as well as exposing my ignorance - a fine case of double jeopardy.

[Tom Poje]

I'd agree the question has me baffled as well, so you are not alone Belgarath.

I seem to recall back in 2002 a concern about 'nonconforming' states - those that didn't update the state tax law to conform with the higher deferral rates permitted under EGTRRA, but eventually all the states conformed (as far as I know).

gad, that issue brings back nightmares long since forgotten.

[Lori Friedman]

Can you elaborate a bit on the FICA question? I know that some states don't permit the same deduction for elective deferrals in some circumstances, but I thought FICA was a federal mandate.

I made a leap of faith and assumed that CJA meant to ask about state income taxation and withholding, and that the "FICA" reference is a typo.