Tax Savings

ILPF participants get a double benefit by participating in the ILPF:  they accrue the long-term benefit of retirement security while realizing the short-term benefit of reducing their tax liability. 

The Inter-Local Pension Fund is a trust described in the International Revenue Code: Section 501(c) (18)* and Section 219(b) (3) and (e).  As such, ILPF participants can deduct up to $7,000 of contributions per year (or 25% of their income, whichever is less) on their taxes, subject to certain limitations, thus lowering their adjusted gross income, and, in turn, taxes payable. The level of deductibility is periodically adjusted by the IRS.  

In addition, those who participate in other payroll deferral plans, such as a 401(k), may be eligible for a higher combined maximum limit on deductibility, depending upon their age. Under current rules, participants who contribute to the ILPF as well as to a 401(k) can deduct up to $18,000 (combined) on their income taxes.  

As the Inter-Local Pension Fund does not provide tax advice, you should discuss these issues with your accountant or tax advisor.

 

*Since there is no specific line on the Form 1040 for Section 501(c)(18) plans such as the Inter-Local Pension Fund, the IRS instructions state that the words “Section 501(c)(18) Plan $ (fill in the total of the year’s contributions) should be written on Line 36 immediately following the words “add lines 23 through 31a and 32 through 35”. The sum of lines 23 through 35 plus the Inter-Local Pension Fund contributions should be included in the box at the right-hand end of Line 36.

 

Harold Moore

Local 285M
Washington, DC

“I plan on working until I’m eligible for full retirement benefits. I think the ILPF provides really excellent benefits. My contribution is taken directly out of my paycheck. I don’t have to think about it, so it’s easy to save for retirement. Belonging to the ILPF gives me a great sense of security. 

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Norma Balentine

Local 577M
Milwaukee, WI

“None of my previous jobs offered a defined benefit pension plan.  We’ve seen how the benefits provided by plans based on stocks, such as 401(k)s, can erode as the stock market plummets.   The ILPF is a gift that very few workers have – a lifelong benefit.

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James Klug

Local 577 M
Cedarburg, WI

“It’s a rare fund and my retirement would be poor without it. I can’t think of any other fund that you get every penny you put in. When I retired, I had paid in a total of $88,000 over 39 years. If I live 25 years past my retirement age, the fund will provide a little under a million dollars in pension payments. I got what I paid in a couple of years and the rest is pure profit.

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John Greco

Local 14M
Philadelphia, PA

"The ILPF is a good investment. I’ve been working at my present job for 39 years, but the employer plan will provide me with less than $800 a month when I retire. Contrast that with the payment I’ll receive from the Fund. Even by age 63, before I plan to retire, I’ll have already earned more than twice as much a month.

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Teamsters Local 299



New Boston, MI

“We felt like we needed to take control of our retirement. That’s why we voted to join the ILPF. The Fund is run exclusively by and for Teamsters. It was set up decades ago and has provided generations of union members with secure retirements.

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Christopher Yatchak

Local 577M
Germantown, WI

“Today’s workers fear that they might run out of retirement savings before they die. It’s important to compare how defined benefit and defined contribution pension funds work and know what you should expect. How do you make your savings last the rest of your life?

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