I am a university employee and receive matching on my contributions to TIAA/CREF retirement plan. I also contribute my maximum allowable each year to the Supplemental Retirement Account (SRA). When I looked at my W2 form this year, I noticed that not all of my contributions to TIAA/CREF and SRA have been treated and reported at "tax deferred." More specifically, only my SRA and part of TIAA contributions were treated as tax deferred and the rest reported as income for which I will pay income taxes. However, my impression is that our entire TIAA/CREF account is considered as "tax deferred" therefore when I start drawing, I will have to pay income tax again. Anyone has any idea about this situation?
I would agree that any and all that are toward retirement (unless going above a maximum) would be tax-deferred.
For spouse and I when being paid for work (up to 2011), the maximum was about $22,000 to $24,000 for the year however there were also various "catch-up" allowances to increase the maximum.=s.
Thank you for the comment. Since my first posting of Jan. 26, I actually learned a couple of new things that address the issue. First, the matching contribution by the university is actually considered a benefit and as such is taxable. That is why it is included in one's gross income and reported to IRS. The portion that I contribute to my 401K and my contributions to my supplemental retirement account (SRA) are tax deferred up to a certain limit (which you have mentioned above).
Second, TIAA/CREF keeps track of which part of a member's contribution is before tax and which part is after tax. In fact, this is reflected to some degree in the quarterly statements. At the time of withdrawal, TIAA will tell us which dollars are taxable and which ones are not.
Not sure about the scenario that you describe regarding your employer contributions. Are they contributing to an after-tax account? It's been a while since I had such contributions, but none of my employer's contributions are now being treated as non-taxable. I did convert to an IRA but I still believe that 401k (not a 403b?) and SRA contribution withdrawals will be taxable. Maybe HR can add more detail to your understanding. GOOD LUCK!!!! :-))))
Whooaaahh there Nelly! Your employer match should be tax deferred. The IRS controls the limits on how much you can contribute to a 403(b) plan. As of 2015, the limit on YOUR deferrals is $18,000 (if you are under 55). The total annual amount that BOTH you and your employer can contribute to your account is equal to $53,000 or 100% of your salary, whichever is less. You need to have TIAA or your accountant call the university and get this resolved!
Google "403b employer match tax deferred limit?" (without the quotes) - the fourth hit is the IRS page. Click on 403b compensation limits. For some reason this site won't let me post the link directly.
sktn77a, if you click the blue underlined "A" in the toolbar, you can paste your link.
Ah, thank you.
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