Failed ADP refund; taxed in what year?

[Richard Anderson]

I think I read somewhere that for plan years 2008 and later, both the refund and gains are taxed in the year distributed, even if distributed by 3/15.

Is this correct? I searched, but can't find where I read this (if indeed, I did read it).

Thanks.

[K2retire]

That is correct. But did you actually have anyone with a gain in 2008?

[Guest Sieve]

Richard --

See IRC Section 4979(f)(2), as amended by PPA '06 (effective for plan years beginning after 12/31/2007).