Pension Plan Trust ends and is Distributed: how to report

Posted by casteele95thbgheavy on April 17, 2006, 10:54 pm

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The company for which I worked decided to end its pension
plan ("Defined Benefit Plan and Trust") so they distributed
the money. I received a distribution: where do I put that?
As 'other income" on line 21 of the 1040? And what do I do
-- if anything -- with the Fed. taxes taken out (as cited on
the 1099-R): just ignore them, or deduct them from the gross
amount that I report?

Thought I was going to get this done on time but, alas,
forgot about this one piece of paperwork :)

Thank you, people: I know it must be a busy day.

HarryTruman

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Posted by San Diego CPA on April 19, 2006, 12:37 am

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> The company for which I worked decided to end its pension

> plan ("Defined Benefit Plan and Trust") so they distributed

> the money. I received a distribution: where do I put that?

> As 'other income" on line 21 of the 1040? And what do I do

> -- if anything -- with the Fed. taxes taken out (as cited on

> the 1099-R): just ignore them, or deduct them from the gross

> amount that I report?

> Thought I was going to get this done on time but, alas,

> forgot about this one piece of paperwork :)

> Thank you, people: I know it must be a busy day.

If you're still within 60 days of the distribution, you can
roll it into an IRA account and not have any current tax
effect. If the date on the check is more than 60 days ago
then you'll need to include in income and pay penalties if
you're under age 59.5 yrs. It's not line 21 but line 16, if
you owe the penalty, see line 60. You may get some relief
if you're affected by Hurricane Katrina.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>