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kalina_saponi
New Member

I received a 1099-R from my KPERS when I left the school district. If I didn't withdraw it, I had to forfeit it. Now I don't know exactly how to enter or if its qualified

I don't even have all the boxes they asked for on the form. It's a 403b but I don't know if I qualify for the situation to lower the tax bill.....

1 Best answer

Accepted Solutions
DexterS
New Member

I received a 1099-R from my KPERS when I left the school district. If I didn't withdraw it, I had to forfeit it. Now I don't know exactly how to enter or if its qualified

Form 5329 is the form on which the Additional Taxes on Qualified Plans is calculated.

Here are the exceptions that offer relief from the penalty:

#.  – Exception Description

01      Qualified retirement plan distributions (does not apply to IRAs) you receive after
         separation from service when the separation from service occurs in or after the year
         you reach age 55 (age 50 for qualified public safety employees).

02    Distributions made as part of a series of substantially equal periodic payments
        (made at least annually) for your life (or life expectancy) or the joint lives (or joint life
        expectancies) of you and your designated beneficiary (if from an employer plan,
        payments must begin after separation from service).

03   Distributions due to total and permanent disability.
       You are considered disabled if you can furnish proof that you cannot do any 
       substantial gainful activity because of your physical or mental condition. A medical
       determination that your condition can be expected to result in death or to be of long,
       continued, and indefinite duration must be made.

04   Distributions due to death (does not apply to modified endowment contracts).

05   Qualified retirement plan distributions up to the amount you paid for unreimbursed
       medical expenses during the year minus 10% (or 7.5% if you or your spouse were
       born before January 2, 1952) of your adjusted gross income (AGI) for the year.

06   Qualified retirement plan distributions made to an alternate payee under a qualified
       domestic relations order (does not apply to IRAs).

07   IRA distributions made to certain unemployed individuals for health insurance premiums.

08   IRA distributions made for qualified higher education expenses.

09   IRA distributions made for the purchase of a first home, up to $10,000.

10   Qualified retirement plan distributions made due to an IRS levy.

11   Qualified distributions to reservists while serving on active duty for at least 180 days.

12   Other (see Other next). Also, enter this code if more than one exception applies

If any of these apply to your situation the program will walk you through preparing the 5329

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4 Replies
DexterS
New Member

I received a 1099-R from my KPERS when I left the school district. If I didn't withdraw it, I had to forfeit it. Now I don't know exactly how to enter or if its qualified

What is the distribution code in Box 7?
kalina_saponi
New Member

I received a 1099-R from my KPERS when I left the school district. If I didn't withdraw it, I had to forfeit it. Now I don't know exactly how to enter or if its qualified

I read that pop up. It says one, but it's a qualifying 403b plan. It asks about situations for lower taxes penalty I guess is where I'm stumped. My job ended and I had to withdraw it or forfeit and I ended up using it for doctors bills in cash.
DexterS
New Member

I received a 1099-R from my KPERS when I left the school district. If I didn't withdraw it, I had to forfeit it. Now I don't know exactly how to enter or if its qualified

Form 5329 is the form on which the Additional Taxes on Qualified Plans is calculated.

Here are the exceptions that offer relief from the penalty:

#.  – Exception Description

01      Qualified retirement plan distributions (does not apply to IRAs) you receive after
         separation from service when the separation from service occurs in or after the year
         you reach age 55 (age 50 for qualified public safety employees).

02    Distributions made as part of a series of substantially equal periodic payments
        (made at least annually) for your life (or life expectancy) or the joint lives (or joint life
        expectancies) of you and your designated beneficiary (if from an employer plan,
        payments must begin after separation from service).

03   Distributions due to total and permanent disability.
       You are considered disabled if you can furnish proof that you cannot do any 
       substantial gainful activity because of your physical or mental condition. A medical
       determination that your condition can be expected to result in death or to be of long,
       continued, and indefinite duration must be made.

04   Distributions due to death (does not apply to modified endowment contracts).

05   Qualified retirement plan distributions up to the amount you paid for unreimbursed
       medical expenses during the year minus 10% (or 7.5% if you or your spouse were
       born before January 2, 1952) of your adjusted gross income (AGI) for the year.

06   Qualified retirement plan distributions made to an alternate payee under a qualified
       domestic relations order (does not apply to IRAs).

07   IRA distributions made to certain unemployed individuals for health insurance premiums.

08   IRA distributions made for qualified higher education expenses.

09   IRA distributions made for the purchase of a first home, up to $10,000.

10   Qualified retirement plan distributions made due to an IRS levy.

11   Qualified distributions to reservists while serving on active duty for at least 180 days.

12   Other (see Other next). Also, enter this code if more than one exception applies

If any of these apply to your situation the program will walk you through preparing the 5329

Rainman12
Level 10

I received a 1099-R from my KPERS when I left the school district. If I didn't withdraw it, I had to forfeit it. Now I don't know exactly how to enter or if its qualified

403b IS a qualified plan, but it doesn't make a difference in your case. You could have rolled it over into another qualified plan within 60 days, but apparently did not, so you MAY owe the 10% penalty tax for early withdrawal per 'Code 1' in Box 7. Just answer interview questions for correct tax treatment. Medical expenses are a Possible exception for the penalty ...
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