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Showing results for tags 'taxation'.
Found 3 results
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A governmental plan requires employees to contribute to the Plan post tax. The monthly benefit reflects both the taxable and non-taxable portions and are reported appropriately. If a retiree dies before receiving benefits equal to his or her contributions (plus interest at the plan's rate), then his or her beneficiary receives a refund equal to the difference between the total benefit received and the retiree's post-tax contributions (plus interest). Is this refund taxable? How is the refund reported to the beneficiary?
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An employer has a group short-term disability plan that is set up to be partially paid by the employer with remaining premiums paid as pre-tax contributions from employees. However, because of a LOA due to injury that resulted in STD payments, an employee made ONLY post-tax contributions to the plan. The employer drafted the W-2 showing all STD benefits as taxable, with the reasoning that it is a pre-tax group plan, even though this particular employee made all contributions post-tax. The employer has offered to refund the premiums, but I'm not sure if this would abide by IRS regulation. Should the benefits be taxable or non-taxable in this unique situation?
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last check, tax reporting and withholding
Guest posted a topic in Distributions and Loans, Other than QDROs
A pension plan pays the benefit due each month on the last day of the month. When a retiree dies, his last check is issued instead to his beneficiary. Plan benefits include after-tax contributions. Is the retiree or the beneficiary taxed? How should the plan handle 1099-R reporting and withholding? Thank you.
