Opinion ID: 1579630
Heading Depth: 1
Heading Rank: 7

Heading: retirement income

Text: Theresa contends that the trial court erred by using John's 2001 income rather than a projected estimate of his 2002 income. Theresa contends, however, that if it was proper for the trial court to rely on John's 2001 income for purposes of calculating child support, the court did not properly calculate that income, because the court failed to include John's elective deferrals to a retirement account. We affirm the trial court's use of John's 2001 income, but agree with Theresa that voluntary deferrals to a retirement account should have been added back to John's income. The trial court assigned to John gross monthly income of approximately $6,035, which figure apparently derives from box No. 1 of John's 2001 W-2. Box No. 1, entitled Wages, tips, other compensation, reports 2001 income of $72,441.20. Theresa contends it was improper for the trial court to rely on box No. 1 income without adding back to it income listed in box No. 12a. Box No. 12a of John's 2001 W-2 reads D 9509.20. Theresa contends that the instructions on the back side of the W-2 indicate that the entry in box No. 12a of John's 2001 W-2 represents contributions to a voluntary retirement account, which contributions must be added back to income. The instructions portion of the 2001 W-2 wage and tax statement are not a part of the record on appeal. We have stated that this court will take judicial notice of general rules and regulations established and published by Nebraska state agencies under authority of law. City of Lincoln v. Central Platte NRD, 263 Neb. 141, 638 N.W.2d 839 (2002); Morrissey v. Department of Motor Vehicles, 264 Neb. 456, 647 N.W.2d 644 (2002). Likewise, we will take judicial notice of rules and regulations established and published by federal agencies under authority of law. A review of the 2001 Instructions for Forms W-2 and W-3 Wage and Tax Statement and Transmittal of Wage and Tax Statements leads us to conclude that $9,509.20 reported in box No. 12a, preceded by Code D of John's 2001 W-2, constitutes an elective deferral to either a 401K or a SIMPLE (savings incentive match plan for employees) retirement account from John's gross earnings. Paragraph E of the applicable version of the guidelines, entitled Deductions, provided in pertinent part: The following deductions should be annualized to arrive at monthly net income: ... (4) Mandatory Retirement. Individual contributions, in a minimum amount required by the plan. The guidelines do not, however, allow a deduction for contributions to retirement plans in excess of the minimum amount required by the plan for purposes of calculating child support. See Workman v. Workman, 262 Neb. 373, 632 N.W.2d 286 (2001). In Workman, we concluded that a self-employed father was entitled to deduct from his income minimum required payments made to a voluntarily established money purchase pension plan, where, once established, the father was required to contribute to the plan. Thus, while the decision to participate in a retirement plan may be voluntary in the first instance, where contributions made to the plan thereafter become mandatory, the minimum contribution required by the plan in effect at the time child support is calculated is deducted from income. In the instant case, although John's contributions to a 401K or SIMPLE plan are characterized by federal regulation as an elective deferral, the contributions may nonetheless be mandatory under the guidelines. Because the record on appeal does not reveal whether John's contributions were required by the retirement plan, we remand with directions to the district court to determine what portion, if any, of John's contributions was mandatory within the meaning of the guidelines. All sums which the trial court determines are voluntary contributions shall be added back to John's income. Theresa's W-2's in the record on appeal appear to reflect similar elective deferrals to retirement accounts in the amounts of $7,800 in 1999 and $2,799.94 in 2001. Because it is unclear whether we have a complete record on appeal, upon remand, the trial court should determine the amount of Theresa's elective deferrals to a retirement account. The trial court should then determine what portion, if any, of those deferrals are voluntary. Those deferrals that the trial court determines are voluntary should be added back to Theresa's income.