Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Benefits February 25, 2008
MA Proposes Change in Tax Treatment of Contributions for Self-Employed
February 25, 2008 (PLANSPONSOR.com) - The
Massachusetts Department of Revenue has moved to get state
regulations in line with federal regulations regarding the
treatment of 401(k) elective and matching contributions made
on behalf of partners and sole proprietors.
Reported by Rebecca Moore
BNA reports that the Department has issued for comment a draft directive on the state income tax treatment of such contributions. According to BNA, the agency explained in the proposed directive that under the federal Internal Revenue Code, partners and sole proprietors are allowed to deduct these contributions from income, but under Massachusetts law they are not.
The new rule would allow 401(k) elective and matching contributions to be deducted from income and would apply to tax years beginning on or after January 1, 2008.
Comments should be submitted by March 7 by emailing RulesandRegs@dor.state.ma.us .
You Might Also Like:
IRS Notice Defines Retirement Plan Tax Distribution Exceptions
The IRS has provided guidance on certain exceptions from the 10% tax penalty for emergency personal or family expenses and...
Employer Forfeited Funds Complaint Against HP Inc. 401(k) Plan Is Dismissed
A federal judge ruled the suit’s ‘theory of liability’ was too broad and dismissed the complaint, which focused on the...
What Does the End of Chevron Deference Mean for the DOL?
It could mean more lawsuits and overturned rules related to retirement plans.