ESOP plan termination

[jdelgado0912]

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?

[MaryK1 · Accepted solution]

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.