1099 Deemed Loan Distribitution

[CJS07]

401(k) Plan terminated on 6/30/07.

A participant took his balance (payable to him) 12/10/07 - 1099 issued by asset company.

This participant also had an outstanding loan - a 1099 has not been issued. Is it too late to issue a 1099 for 2007 (provided the participant hasn't completed his taxes yet)? If it is too late will there be a problem if the 2007 Form 5500 says it's a final return but a 1099 is issued in 2008?

Thx

[QDROphile]

On what basis would a Form 1099 for a distribution in 2008 be appropriate? It looks like the distribution was in 2007. I don't see how the timing of the filing of the participant's tax return has anything to do with legal requirements; tax returns can be amended.

[Bird]

It's not too late...there's a penalty for late filing; I think it's $25 and I've never seen it enforced. If the participant has filed, well, they would need to amend.

I don't believe there is any cross-referencing with Form 5500 and 1099 filings, so you could get away with doing a 2008 1099. It's not "right" though.