withholding disaster

[K2retire]

We are TPA on an old profit sharing plan that has pooled assets with Schwab. The plan made several distributions in 2013. The plan trustee didn't want any of the money running through the company bank account, and didn't have a separate bank account for the plan. Schwab was instructed to cut checks to the IRS and mail them in. The checks were sent with no accompanying explanation or forms, and a note in the memo line that read "f/b/o [participant SSN]".

Any suggestions about how to reflect that on the 1099-R and 945 forms?

[emmetttrudy]

were the checks cashed??

[emmetttrudy]

if the checks were not cashed i recommend you put a stop payment on them and use the following service. https://p3.penchecks.com/login.aspx?ReturnUrl=%2f

instruct Schwab to send the checks to Penchecks and they handle all tax reporting, IRS remittance, 1099-Rs, etc.

[K2retire]

Schwab has finally confirmed that they were cashed. We have copies of the cancelled checks in anticipation of IRS correspondence about not being able to find the payments indicated on the Form 945.