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1.402 -Deduction for Employee Contributions to Public Pension Plans
| Item | Description | FY2011 | FY2012 | FY2013 |
|---|---|---|---|---|
| 1.402 | Deduction for Employee Contributions to Public Pension Plans2
Employee contributions to federal and state contributory pension plans are deductible against "earned" income up to a maximum of $2,000 per individual. Origin: M.G.L. c. 62, S. 3B(a)(4) Estimate: included in 1.401 |
included in 1.401 | included in 1.401 | included in 1.401 |
Key:
| ORIGIN | |
| IRC | Federal Internal Revenue Code (26 U.S.C.) |
|---|---|
| U.S.C | United States Code |
| M.G.L. | Massachusetts General Laws |
| Rev. Rul.; C.B. | Revenue Ruling; Cumulative Bulletin of the U.S. Treasury |
| ESTIMATES | All estimates are in $ millions. |
Footnote:
2 2 This item and others citing this endnote cover contributory pension plans. The standard tax treatment of these plans is as follows: Component Standard Treatment Contributions: Made out of income that is currently taxed to employees. Investment Income: Taxed to the employee as "earned" income. Distributions from Pension Funds: Tax-free to the extent they are made out of dollars previously taxed to the employees as contributions or investment income. The non-standard treatment of contributions, investment income, or distributions as described in items 1.006, 1.101, 1.104, and 1.402, results in either nontaxation or deferrals of tax.
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