Pixie Posted March 22, 2013 Posted March 22, 2013 I have a 415© failure due to employee deferrals. The employer contributed a $50,000 profit sharing for the participant. So I need to refund the employee deferrals over the catch-up contribution of $5,500 since the participant has attained age 50. My question is, what year is the refund taxed?
Doghouse Posted March 22, 2013 Posted March 22, 2013 If I'm reading the question correctly, taxable in year paid, per Publication 525. Dog
BG5150 Posted March 22, 2013 Posted March 22, 2013 Most everything is taxable int he year of distribution now except 402(g) before April, right? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
12AX7 Posted March 22, 2013 Posted March 22, 2013 Are not the earnings taxed in the year distributed? That was my understanding.
Doghouse Posted March 25, 2013 Posted March 25, 2013 Everything is taxed in the year distributed, with the exception of 402(g) (excess deferral refunds), in which case the contribution is taxed in the year deferred and the earnings are taxed in the year distributed. Dog
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