Early distribution penalties and 60-day rollover failures are prevalent issues that tax preparers must handle despite the size of the firm or the wealth of your clients. There are penalty exceptions and waivers; but some issues have no possible resolution.
Note: This class presents an in-depth discussion of issues presented in the instructor’s class Retirement Distributions: Planning Options.
Recall exceptions from the 10% penalty for early distributions from retirement plans, IRAs and annuities.
Consider the far reach of the once per year rollover rule and what circumstances have fatal consequences.
Recognize the retirement plan information are furnished to IRS annually and what is not.
Determine how to prepare Form 5329 and start the statute of limitations on penalties.
History of the 60-day Rule and Recent Developments
Rulings and self-certification
Exceptions to the ten percent penalty
What the IRS knows: Forms 1099R and 5498
Form 5329 use and strategies
CPAs, tax staff and other tax professionals.