For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
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:
Inherited IRA RMD Final Rules Postponed to 2025
The IRS will not enforce RMDs for inherited IRAs under the 10-year rule until at least 2025.
PLESA Match Manipulation Not a Concern, Chamber of Commerce Says
Other SECURE 2.0 implementation issues are a much bigger worry.
Mutual Funds See First Net Inflows in More Than 2 Years
Despite net inflows to mutual funds in February, reversing the long-term trend of outflows is unlikely, according to analysts.