US Taxes: Federal

NEW - Federal - Railroad Tier 1 Creditable Sick Pay Jurisdiction Codes effective 1/1/2024

New jurisdiction codes have been created for Railroad Tier 1 Creditable Sick Pay effective 1/1/2024.

Railroad Creditable Sick Pay from an RRB-approved plan has unique taxation and reporting requirements. The taxation and reporting requirements differ from those of a sick pay plan offered by non-railroad employers or to nonqualifying employees of a covered railroad employer. Employers will need to set up the codes. The new codes are as follows:

Tax Name	Jurisdiction Code	Tax Category Code	DTS Tax code
Federal - Employer Railroad Tier 1 SS Sick Pay	00000000	125	0043
Federal - Employee Railroad Tier 1 SS Sick Pay	00000000	126	0044
Federal - Employer Railroad Tier 1 Medic Sick Pay	00000000	127	0045
Federal - Employee Railroad Tier 1 Medic Sick Pay	00000000	128	0046

GPTCI-52482

https://www.rrb.gov/Resources/RailroadRetirementHandbook

Federal - Deferred Compensation Limit Updates [Effective January 1, 2025]

The IRS announced the changes to deferred compensation plans. GPTCI-51556

Description	2025 Amount	2024 Amount
Contributions under 401(k) or 403(b) or 408(k)	$23,500.00	$23,000.00
401(k) or 403(b) or 408(k) Standard Catch-Up	$7,500.00	$7,500.00
401(k) or 403(b) or 408(k) Super Catch-Up (ages 60 - 63 at end of year)	$11,250.00	n/a
401k SIMPLE	$16,500.00	$16,000.00
401k SIMPLE Standard Catch-Up	$3,500.00	$3,500.00
401k SIMPLE Super Catch-Up (ages 60 - 63 at end of year)	$5,250.00	n/a
457 Plan	$23,500.00	$23,000.00
457 Plan Catch-Up	$7,500.00	$7,500.00
SIMPLE IRA	$16,500.00	$16,000.00
SIMPLE IRA Catch-Up	$3,500.00	$3,500.00

https://www.irs.gov/pub/irs-drop/n-24-80.pdf

Federal - Railroad - Earning code for Railroad Creditable Sick Pay [Effective January 1, 2024]

A new Earning code has been created called Railroad Creditable Sick Pay (E112) effective January 1, 2024. Railroad Creditable Sick Pay from an RRB-approved plan has unique taxation and reporting requirements. The taxation and reporting requirements differ from those of a sick pay plan offered by non-railroad employers or to nonqualifying employees of a covered railroad employer. GPTCI-49634

https://www.rrb.gov/Resources/RailroadRetirementHandbook