ESOP plan termination

1 reply
24 views

My company had an ESOP but was purchased by another company. The ESOP was frozen, then terminated. When the plan was terminated, we were offered to roll it over or take a lump sum distribution minus 20%. What tax form will this be shown on and how much additional will I have to withhold?

TurboTax Free Edition iOS

MaryK1Answer

Level 11

You will receive a 1099-R. If you did not roll it over into a qualified account, the total will be added to your income to determine how much tax you owe.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

MaryK1Answer

Level 11

You will receive a 1099-R. If you did not roll it over into a qualified account, the total will be added to your income to determine how much tax you owe.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"