Distribution - How reported?

[Guest rgorman]

Plan paying out benefits to retiree on an annual basis. They were paying him with a W-2, they switched to paying him the benefit via a 1099R. I do not deal in nonquals, how should a benefit payment be reported to the participant and the withholding be reported by the plan sponsor?

Thanks.

[david rigby]

This prior discussion indicates the use of W-2, but a review of the instructions would tell you if any procedures have since changed (not likely, but such review never hurts).

http://benefitslink.com/boards/index.php?showtopic=15273

[Guest TAG]

Pax,

Short answer. Deferred compensation goes on W-2 with corresponding 941 filed on a quarterly basis. Don't forget the States if applciable. Beneficiary, QDRO (DRO) and Director's Fees go on 1099-R with corresponding 945 filed annually. 945 payments do not require fed tax withholding on NQPlans.

Hope that gets you started.

TAG