Tax Identification Number - Plan

[401kWhisperer]

Hi, 

I reread a few prior discussions on this and it seems to be the consensus is that if the plan's assets are with a recordkeeper (Vanguard/Ascensus for example), no TIN is needed because they are the payer on the 1099-R.  I just wanted to confirm I'm not missing something and perhaps there's another logical reason in getting one.  I am at a new firm and they generally request them for all plans.  I believe my last employer only applied if the assets were with a brokerage account.  

 

thanks!

 

[Peter Gulia]

When the retirement plan’s named fiduciary expects that all distributions will be tax-reported by the plan’s trustee or its agent (and that the plan will have no asset other than those held by a bank or trust company as the plan’s trustee or custodian), different lawyers, accountants, and other advisers give different advice about the wisdom or unwisdom of applying for a taxpayer identification number.

Different service providers have different business practices about this.

Consider falling in with your new employer’s practice, perhaps for no more reason than it is your employer’s practice.

Or, to learn more about your new firm’s reasoning, ask.