refund checks

[Guest josephr]

a tpa just mailed checks for corrective distribution for calendar 06 plan. What year are they taxable?

CPA was told he didn't need to amend 06 individial return..... any cites on this?

Thanks

[masteff]

It will be taxable in year distributed since distributed after April 15 and/or 2-1/2 months after year end (which one applies depends on type of corrective distribution). See pages R-4 & 5 of instructions for form 1099-R ( http://www.irs.gov/pub/irs-pdf/i1099r.pdf ).

[WDIK]

From the 1099-R instructions -

Excess contributions. Excess contributions can occur in a 401(k) plan or a SARSEP. For a 401(k) plan, if the withdrawal of the excess plus earnings occurs within 2-1/2 months after the close of the plan year, the excess and earnings are taxable to the participant in the year deferred. But if the corrective elective distribution is made after the 2-1/2-month period, or the excess contribution (not including earnings) (and excess aggregate contributions (not including earnings) in the case of a 401(k) plan) is less than $100, the excess (other than designated Roth account contributions) and earnings are taxable in the year distributed.

(Sorry to duplicate, masteff. I guess it's quicker to post the link.)

[masteff]

I guess it's quicker to post the link.

Quicker -- lazier

Tom-AY-to -- Tom-AH-to