Pastor has 403 B contributions - can he deduct them? If so, where?

Forum|Forum|1 year ago
April 13, 2025
2 replies
12 views

My Pastor has $5K to his 403 B and I think he should be able to deduct that amount ... but I cannot figure out WHERE to put the contributions on the IRA Contributions worksheet?!

Makes me wonder if he cannot deduct the contributions, after all? * Sigh * Maybe a lame question - my brain is running on fumes !!

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Best answer by jeffmcpa2010

If the treasurer seems to be "cooperative" and might be willing I would go for the corrected W-2. That probably means an extension, but you should be able to dial in any tax owed.

If the treasurer does not want to correct the W-2, I guess I would probably use the Keogh/Sep/Simple contribution worksheet, and enter the amount somewhere on lines 1-5 wherever it gets you the correct answer. I would also put an explanation on a "Preparer Notes" page (f6 PN) it's doubtful than anyone at the IRS will read it, but at least you have disclosed how you dealt with the problem. (I heard somewhere years ago that Preparer notes do get transmitted with the return, and supporting statements do not, but I have no way of verifying that.)

I'm not sure if there might end up being a "matching problem" with a 5498 form at some point so this might not be the end of your issue.

J

jeffmcpa2010

Level 10

Did he receive a W-2 that shows the 403B contribution in box 12?

If so box 1 should already be reduced by that amount.

B

buelfarmAuthor

Level 5

I spoke with the Treasurer, who reduces Box 1 by the Housing Allowance, but does not do anything with the 403 B contributions - should I request a Corrected Form W-2, or have them get it right next year and figure out a way to put it in the software somewhere this year? Just can't find a place b/c it's likely as you said, it should have been taken out already, as part of the Box 1 calculation.

J

jeffmcpa2010Answer

Level 10

If the treasurer seems to be "cooperative" and might be willing I would go for the corrected W-2. That probably means an extension, but you should be able to dial in any tax owed.

If the treasurer does not want to correct the W-2, I guess I would probably use the Keogh/Sep/Simple contribution worksheet, and enter the amount somewhere on lines 1-5 wherever it gets you the correct answer. I would also put an explanation on a "Preparer Notes" page (f6 PN) it's doubtful than anyone at the IRS will read it, but at least you have disclosed how you dealt with the problem. (I heard somewhere years ago that Preparer notes do get transmitted with the return, and supporting statements do not, but I have no way of verifying that.)

I'm not sure if there might end up being a "matching problem" with a 5498 form at some point so this might not be the end of your issue.

qbteachmt

Level 15

"but does not do anything with the 403 B contributions"

If it's not even included on the W2, then I would simply fill in the W2 as if it is there.

Don't yell at us; we're volunteers

B

buelfarmAuthor

Level 5

Not possible, as W-2 has been filed with government ... I can't just put whatever I want on the W-2 form ... I will have to ask for a correction of the W-2, which will include the deduction for the 403 B, as it should have been done originally ...

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