Vlad401k Posted May 8, 2015 Posted May 8, 2015 Let's say a participant contribution a total of $100 in a 401k plan in Roth contributions. The participant takes out a distribution and is charged with $50 distribution fee. How should the Roth basis be reported on 1099-R? Is it the total $100? Does the $50 distribution fee count as a loss?
ETA Consulting LLC Posted May 8, 2015 Posted May 8, 2015 I believe the fee should be charged against the participant's account and he would take a $50 distribution. That would leave him an additional $50 Roth Contribution basis in the plan. Good Luck! CPC, QPA, QKA, TGPC, ERPA
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