07-01-2007, 10:06 PM
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 Re: Tax on Early Plan Distributions PT wrote: - quote - > Normally distributions from an IRA or qualified retirement
All of the CalStrs plans are qualified plans and the members> plan are subject to a 10% penalty tax unless an exception > applies. But I seem to recall that governmental plans > aren't "qualified plans" - that is, they're not subject to > IRS approval or scrutiny. > So suppose a taxpayer received a separation payout from the > California Teachers' Retirement System. None of the > exceptions in the Form 5329 instructions apply. Is this > distribution subject to the 10% penalty? are subject to early withdrawal rules. << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
06-29-2007, 10:08 PM
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| Tax on Early Plan Distributions Normally distributions from an IRA or qualified retirement plan are subject to a 10% penalty tax unless an exception applies. But I seem to recall that governmental plans aren't "qualified plans" - that is, they're not subject to IRS approval or scrutiny. So suppose a taxpayer received a separation payout from the California Teachers' Retirement System. None of the exceptions in the Form 5329 instructions apply. Is this distribution subject to the 10% penalty? -- PT << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| distributions, early, plan, tax |
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