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sonic

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  1. sonic

    457 Distribution

    Thanks John I think you are correct (hope) Depends on residing state. just needed a second option, to boost the the tax worries. Thanks Keep up the good work Andy
  2. sonic

    457 Distribution

    Thanks Yea reading again and again, all depends how you translate it (hate taxes and tax laws) Thou Pub 575 does say: "Exceptions to tax. Certain early distributions are ex-cepted from the early distribution tax. If the payer knows that an exception applies to your early distribution, distribu- tion code “2,” “3,” or “4” should be shown in box 7 of your Form 1099-R and you do not have to report the distribution on Form 5329. If an exception applies but distribution code “1” (early distribution, no known exception) is shown in box 7, you must file Form 5329. Enter the taxable amount of the distribution shown in box 2a of your Form 1099-R on line 1 of Form 5329. On line 2, enter the amount that can be excluded and the exception number shown in the Form 5329 instructions." which conflicts with form 5329 "who has to file section??" hey i have code 2, so no file "final answer" lol ( "do not have to report on form..." means no file form- ??, if u don't have other early penalities right? my next problem is state taxes, i live in MD (always) the job location was in DE (last worked there 2 yrs so no direct income from DE?) the 457 company paying the 1099-r is from DC (cry, cry) . DE usally wants the taxes, if the employer is based there and then u need to get a state credit. I think. not sure. the 457 company did use a state/payers no. of MD#####, so i think it is only subject to md taxes (cry, cry) hopefully i would hate to file MD,DE,DC over a $40 (big retirement) or screw up the forms. Thanks
  3. sonic

    457 Distribution

    Hi For filling in the tax form 1040. Is a 457 deferred compensation plan distribution: 1 An IRA (lines 15a/b) or 2 A pensions/annuities (line 16a/b) very confused, i think it is a pension/annuity??, but keep seeing several references to treat it as a qualified retiremant plan and ira??. my 1099-r doesn't say which it is just generlizes that a 1099-r is used for all of them, ira's, pensions, etc etc do i have to file a 5329 early distrubution tax form. I was 32 when i cashed in my 457 (left job). i did not roll it over. i did have code 2 in box 7 on my 1099-R. (worked for public works (government)) Form 5329 instructions do not say code 7 is an excemption to tax, but pub 575 page 30 does say it is. so file or not 5329?? Thanks Andy
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