Page 60 - Wages, Salaries and Other Earnings

Retirement Plan Contributions

Retirement Plan Distributions

 Your employer's contributions to a qualified retirement plan for  For information on distributions from
you aren’t included in income at the time contributed. (Your
employer can tell you whether your retirement plan is retirement plans, see Pub. 575, Pension and
qualified.) Annuity Income (or Pub. 721, Tax Guide to
 However, the cost of life insurance coverage included in the U.S. Civil Service Retirement Benefits, if
plan may have to be included. See Group-Term Life Insurance, you’re a federal employee or retiree).
earlier, under Fringe Benefits.
 If your employer pays into a nonqualified plan for you, you
must generally include the contributions in your income as
wages for the tax year in which the contributions are made.
 However, if your interest in the plan isn’t transferable or is
subject to a substantial risk of forfeiture (you have a good
chance of losing it) at the time of the contribution, you don’t
have to include the value of your interest in your income until
it’s transferable or is no longer subject to a substantial risk of
forfeiture. 58