John A
Nov 1 1999, 05:56 PM
What is the correction where it has just been discovered today, November 1, 1999, that a participant deferred $10,800 in 1998?
dsilver
Nov 1 1999, 06:28 PM
Take the money out of the plan and report it on a 1099-R as taxable income for 1998. Include the interest earned on the extra $800.
Spencer
Nov 2 1999, 06:24 PM
The deadline for distributing deferrals in excess of the 402(g) dollar limit is April 15th. The penalty is double-taxation. The $800 is taxable income to the participant in BOTH 98 and 99 and two 1099r's should be filed. The earnings on the excess amount are taxable in 99.
John A
Dec 31 1999, 03:08 PM
What distribution code(s) should be used on the 1099-R(s)?
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