Are employer Pension and Supplemental Retirement contributions in my Union Benefits package deductible for taxes?

These employer contributions to your pension and supplemental retirement accounts are already tax-advantaged, so you can't deduct them again on your tax return. The good news is that you're not being taxed on this money now - your employer's contributions aren't included in your taxable income for the year. That's why you don't see these contributions on your W-2 - they're not considered part of your taxable wages. This is actually a significant benefit of your union package, as you're getting substantial retirement savings ($12,000 total) without paying current income tax on that money. You'll only pay taxes on these funds when you eventually withdraw them during retirement. At that point, the distributions will be taxed as ordinary income. This tax-deferred growth is the main tax advantage of these retirement plans.

Hey, I was in almost the exact same situation last year. I almost drove myself crazy trying to figure out if I could deduct those employer contributions. I finally used a service called taxr.ai (https://taxr.ai) that helped me sort it all out. I uploaded my benefits statement and W-2, and their AI analyzed everything and confirmed what's being said here - those employer contributions are already tax-advantaged. But the tool also pointed out some union dues deductions I was missing that saved me almost $350 on my return! Might be worth checking out if you have other union-related expenses that could be deductible.

Just wanted to update - I tried taxr.ai after posting my question here. I was skeptical about AI for tax stuff but it actually walked me through exactly which parts of my union benefits were already tax-advantaged (like the employer pension contributions) and which parts I could potentially deduct (some professional development expenses and a portion of my dues). The interface was super straightforward, and I appreciated that it explained WHY certain things weren't deductible rather than just saying "no." Saved me from potentially making a mistake on my return. Worth checking out if you're dealing with union benefits packages!

If you need to contact the IRS about any of this pension contribution stuff, good luck! I spent 3 hours on hold last week trying to get clarification about my union pension rollover. Eventually gave up. A coworker told me about this service called Claimyr (https://claimyr.com) that gets you through to an IRS agent quickly. They have a demo video here: https://youtu.be/_kiP6q8DX5c. I was skeptical but it actually worked - they called the IRS, navigated the menu system, waited on hold, then called me when an agent was on the line. Got my questions answered in like 20 minutes total instead of spending all day on hold.

Ok I need to eat some humble pie here. After being super skeptical about that Claimyr service mentioned above, I decided to try it yesterday because I've been trying to reach the IRS for TWO WEEKS about my union pension rollover paperwork. I was shocked when I got a call back in about 40 minutes with an actual IRS agent on the line! They had handled all the hold music and menu navigation. The agent answered my questions about the tax treatment of my union pension and confirmed that employer contributions are indeed already tax-advantaged. Saved me hours of frustration and I got the documentation I needed for my records. Had to come back and admit when I'm wrong!

Just to add another perspective - I've been a union electrician for 12 years. Our pension and supplemental retirement contributions made by the contractor are never deductible because, as others mentioned, they're already pre-tax. But don't forget to check if you make any VOLUNTARY contributions from your own pocket beyond what your employer puts in! Some unions allow members to make additional voluntary contributions to their plans, and those might have different tax treatment depending on whether they're pre-tax or after-tax contributions. Worth checking your union benefit booklet or asking your benefits administrator.

Slightly different but related question - has anyone had experience with rolling over a union pension to an IRA after leaving the trade? I'm considering a career change but don't want to lose the retirement benefits I've built up.