PS Posted March 10, 2022 Posted March 10, 2022 Hi, I've not come across 1099-NEC form, can anyone provide me little detail on this and how this is applicable for a 401k plan ( Plan Termination). Thanks
C. B. Zeller Posted March 10, 2022 Posted March 10, 2022 NEC = Non-Employee Compensation If someone is receiving one of these, then they are not an employee. Not an employee means they are not eligible for the plan. Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
PS Posted March 10, 2022 Author Posted March 10, 2022 1 hour ago, C. B. Zeller said: NEC = Non-Employee Compensation If someone is receiving one of these, then they are not an employee. Not an employee means they are not eligible for the plan. Thank you!
Bob the Swimmer Posted March 10, 2022 Posted March 10, 2022 It's the new IRS form for 2021 if your business paid more than $600 to an independent contractor for services rendered.
PS Posted March 16, 2022 Author Posted March 16, 2022 On 3/10/2022 at 5:32 PM, Bob the Swimmer said: It's the new IRS form for 2021 if your business paid more than $600 to an independent contractor for services rendered. is it more to do with a Non-Qualified plan, since my client was wondering why a 1099-NEC got triggered for a 401k ( qualified plan).
Bob the Swimmer Posted March 16, 2022 Posted March 16, 2022 No, not really. It's the IRS' new form for independent contractors---we sent one to one of our vendors last week. Several other possibilities come to mind, but the broad heading would be for service providers that you pay for rendering services to the 401(k) plan.
PS Posted March 17, 2022 Author Posted March 17, 2022 11 hours ago, Bob the Swimmer said: No, not really. It's the IRS' new form for independent contractors---we sent one to one of our vendors last week. Several other possibilities come to mind, but the broad heading would be for service providers that you pay for rendering services to the 401(k) plan. so, since the client has received it so this is something they would have received for the 401k service that we provide?
BG5150 Posted March 17, 2022 Posted March 17, 2022 Who issued the 1099-NEC? Ask them what it's for. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
PS Posted March 17, 2022 Author Posted March 17, 2022 14 minutes ago, BG5150 said: Who issued the 1099-NEC? Ask them what it's for. Ok, let me check that.
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