Public employee 414(h) retirement contributions and New York City flexible benefits program (IRC 125)

Public employee 414(h) retirement contributions and New York City flexible benefits program (IRC 125)

Both 414(h) retirement contributions and IRC 125 benefit plan amounts are reported to you in box 14 of your Wage and Tax Statement (Form W-2). As a state or local employee, it is important to know how and where to report these contributions on your tax return each year.

If you are a member of a public employee retirement system (such as the NYS and Local Retirement System) and made 414(h) retirement contributions to your retirement plan, then you must report the contributions as an addition modification to federal adjusted gross income on your New York State income tax return. This addition modification is reported on line 21 on Form IT-201, Resident Income Tax Return; or line 21 of Form IT-203, Nonresident and Part-Year Resident Income Tax Return.   

Also, if you participate in a New York City flexible benefits program, IRC 125, you must report the amount deducted or deferred from your salary as an addition modification to federal adjusted gross income on line 23 of Form IT-201, Resident Income Tax Return; or line 22 of Form IT-203, Nonresident and Part-Year Resident Income Tax Return.