RobertB4444
Expert Alumni

Retirement tax questions

This is indeed a legitimate way to enter the taxable income for every year that it is occurring.  Entering the negative amount should ensure that it doesn't remain on your tax return and you don't have to pay taxes on it.  

 

However, it doesn't guarantee that the IRS will never ask questions about it.  Just maintain documentation showing the private pay agreement as well as whatever you have showing the transferred amounts and you should be fine.

 

@Annoyed2024 

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