Profit Sharing plan has insurance policies in it. The policy's are "owned" by the plan and are held for certain individuals. The Plan is now terminating and the policies have surrendered for the cash surrender value. The insurance company then issued a 1099-R to the plan, for the surrender value of the policy (minus acculated PS-58 costs).
Does this sound correct? What exactly should the plan do with this 1099-R, attach it to the 5500? The plan does not file a tax return or anything of that nature that an individual normally would. I'm not sure how the 1099-Rs for past PS-58 costs were handled (I suspect they were never issued, but thats another story).
Any comments?
Full Version: PS Plan is issued a 1099-R
QUOTE (Santo Gold @ Feb 3 2009, 03:13 PM) 
What exactly should the plan do with this 1099-R, attach it to the 5500?
Place it in a file somewhere, but otherwise ignore it.
WDIK is right. Just ignore it and file it away.
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