- quote -

7

There's an old Dilbert I like, where Wally and Dilbert are
trying to out-do each other on the primitiveness of their
early programming languages.

Toward the end it goes something like:

W: We didn't have high level programming languages, we had
to use assembly language (pretty primitive even then)

D: We didn't have assembly language, we had to use 1's and
zeroes.

W: One's? You had Ones?

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -


--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"michaeljc70[at]hotmail.com" <michaeljc70[at]hotmail.com> wrote:

- quote -

No. THEY report it that way. YOU amend the return, and the
excess is added to wages.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

I wish you fellows would learn to be more succinct. <grin
Thanks.

-HW "Skip" Weldon
Columbia, SC

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

My company says they will be sending a 1099 for the refund
in Jan 2006. Does this mean I put it on my 2005 tax return
and don't file an amended return? From what I've read, it
sounds like my company should send a corrected W-2.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

Line 7

--
Phil Marti
Clarksburg, MD

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

<michaeljc70[at]hotmail.com> wrote:

- quote -

No, they don't issue a corrected W-2. They notify you and
return the excess, and you include it when you file. If
you've already filed, you have to file an amended return.

Next January you'll get a 1099-R which, if properly coded,
will indicate that this is 2004 income reported on the 2004
return.

--
Phil Marti
Clarksburg, MD

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Related question on highly compensated employee's refunded
contributions:

On what line of 1040 do returned contributions go?

-HW "Skip" Weldon
Columbia, SC

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Is there a cut-off as to when they have to notify you by? I
thought for tax-related forms needed to be out by 1/31. Do
they have to send a 1099 or corrected W-2 to reflect the
returned 401K contribution?

I do my own taxes, but it seems to me that if you get all
your tax forms by 1/31, pay someone to do your taxes, file
your taxes, and then get notified of this, it is kind of
ridiculous.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"michaeljc70[at]hotmail.com" <michaeljc70[at]hotmail.com> wrote:

- quote -

Yes. Which if they work on New Year's Day would be 1/12005
for the year 2004. You seem to forget that their are a lot
of employees who are NOT highly compensated, and regardless
of who is and who isn't, you can't have actual test numbers
until payroll is closed out for the year. Being highly
comped in and of itself doesn't mean much without actual
contribution and payroll numbers.

- quote -

Complain to your congressperson.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Why is it based on the prior year's income though? They
certainly know 2004's income by the time they do these
calculations. If I made $90K in 2003 and $20K in 2004, to
return my 2004 contribution is silly.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"michaeljc70[at]hotmail.com" <michaeljc70[at]hotmail.com> wrote:

- quote -

Yes.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

<michaeljc70[at]hotmail.com> wrote:

- quote -

<snip
- quote -

Yes.

--
Phil Marti
Clarksburg, MD

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

<michaeljc70[at]hotmail.com> wrote

- quote -

Yes. File an amended return.

The definition of HCE includes 5% or more owner, yes, those
paid over $90K, or the "top paid group" which is the top 20%
of employees.

And remember, the fairness" of tax laws depends on whether
they impact you adversely or not.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I received over $7K of my $12K contriubtion back from my
employer with a one line note saying "excess contribution".
I know in the past they have run into problems with HCE
(higly compensated employee) rules. I looked up the figure
for 2004, and it is $90K for 2004. I believe, however, that
they use the prior year. I was under the limit if they use
2004, over if they use 2003. Well, I know this is probably
not the place to debate the tax code being unfair (why be
penalized on your 401K contribution for what you made the
PRIOR year?). I might add that I only go to contribute
about $5K to the plan, which is not much more than an IRA.
Of course, I got the check the date after I filed my income
tax. I assume now I have to file an amended return. Is this
correct?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->