Jump to content

Reporting for Lost Participant Money Sent to PBGC


Recommended Posts

I apologize, I'm sure this question has been asked and answered - so if someone could point me to the correct thread, I'm happy to read up on it. 

I also wasn't sure if this question was better suited for the distribution message board or this on. 

I don't deal with PBGC covered plans often - so my apologies in advance if I am using the wrong terminology or asking the wrong type of question. 

PBGC covered plan - terminated and closed. There were a about a dozen participants whose benefit was sent to the PBGC per the lost participant rules. 

We are now preparing 1099-Rs for the plan. The participants who elected something ( lump sum cash, rollover, etc) I have no problem preparing the 1099-Rs. But I don't know how to report those whose benefit was transferred to the PBGC. 

Do they get 1099-Rs? I'm thinking yes - but I've been wrong before

If they get a 1099-R what code goes on the form?

I'm sure there is a publication or guide that deals with this - I'm just not sure where to look. 

I called the PBGC for an answer and was told I would get a call back - but I haven't heard yet so thought I would ask all you smart folks here. 

I'm a stranger on the internet. Nothing I write is tax or legal advice. 

I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?

Link to comment
Share on other sites

My understanding is that 1099's are issued for distributions, but the payment you describe is a transferNo 1099 needed.  

You may want to review the 1099R instructions, just in case.   Also, I believe there is a previous Q&A on point, somewhere in this Forum.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...