Early distribution penalties and 60-day rollover failures are prevalent issues that tax preparers must handle despite the size of the firm or the wealth of your clients. There are penalty exceptions and waivers; but some issues have no possible resolution.
Note: This class presents an in-depth discussion of issues presented in the instructor’s class Retirement Distributions: Planning Options.
- Recall exceptions from the 10% penalty for early distributions from retirement plans, IRAs and annuities.
- Consider the far reach of the once per year rollover rule and what circumstances have fatal consequences.
- Recognize the retirement plan information are furnished to IRS annually and what is not.
- Determine how to prepare Form 5329 and start the statute of limitations on penalties.
Level of Difficulty:
- History of the 60-day Rule and Recent Developments
- Rulings and self-certification
- Exceptions to the ten percent penalty
- What the IRS knows: Forms 1099R and 5498
- Form 5329 use and strategies
CPAs, tax staff and other tax professionals.