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1099-R reporting for rehired employees?


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Has anyone come across guidance regarding whether Code section 72(t)(2)(A)(v) applies to distributions made to rehired employees.  Any guidance is greatly appreciated. TIA.

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If this person is re-employed then you need to follow the distribution rules as they apply to employed participants. If these are being reported with code 1 for premature that tells me the person is not over age 59 1/2 and these are now impermissible in-service distributions. If for some reason they are permissible then they are subject to the additional 10%.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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If the employee had a legitimate termination of employment, took a withdrawal upon that distributable event in the year of age 55 or later, and then was later rehired, I would think the withdrawal still was exempt from the 10% because that's determined at the time of the withdrawal, no?

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I agree with both CuseFan and Bri. Depends on the timing, i.e. was the individual rehired before or after the distribution.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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