The IRS recently published new guidance on the tax withholding and reporting consequences associated with qualified retirement plan distributions to state unclaimed property funds. In Revenue Ruling 2020-24, the IRS clarified that distributions from qualified retirement plans to state unclaimed property funds are subject to both federal income tax withholding and 1099-R reporting requirements. In … Continue Reading
The IRS recently released Notice 2020-62, which updates the safe harbor explanations that may be used to satisfy the notice requirement for eligible rollover distributions, also referred to as the “Safe Harbor Notices.” These changes to the Safe Harbor Notices take into account recent statutory changes brought about by the Setting Every Community Up for … Continue Reading
During a participant’s lifetime, required minimum distributions (“RMDs”) from a defined contribution plan are relatively small in size. Less favorable treatment may apply after the participant’s death, depending on the distribution options offered by the plan, the form of distribution elected by the participant, the age of the beneficiary and the relationship between the participant … Continue Reading
