dmertz
Level 15

Retirement tax questions

I've reviewed the Georgia Code and § 47-22-1 identifies the GDCP as a 401(a) plan, which would indeed make it a qualified retirement plan.

 

Although the reporting on Form 1040 of a lump-sum distribution is generally the same whether the plan is qualified or not,  being qualified rather than nonqualified means that the distribution is eligible for rollover to an IRA.  Unless your husband waived the requirement, the plan was required to have provided your husband with a statement explaining rollover options at least 30 days prior to making the distribution.  Note, however, that a portion of this distribution was your husband's 2023 RMD from this plan, so only the amount in excess of the RMD is eligible for rollover.  If rolled over, the portion rolled over is deemed to come first from the taxable part (the interest), reducing the amount that is subject to tax in 2023.  The deadline for competing the rollover is the 60th day after the day that your husband received the distribution.