M
My fair share
Guest
In 1999 I received a check from the attorney handling my father's estate. This check was for 80% of the total amount. Included were:
1) A letter saying that the check was issued as a result of a "class action settlement with XYZ Co. retirement. This is taxable income to you for 1999"
2) A copy of another check, sent to IRS, in my name, as withholding, which was 20% of the total amount.
3) A "SCHEDULE K-1 - Form 1041," issued in my name, where the entire amount (less admin. costs) is listed under "Other" and noted as a "PENSION DISTRIUTION. - XYZ co." (line 41c).
My question is, can I consider this a "Qualified Retirement Plan" distribution, and can I use form 4972, "Tax on Lump-Sum Distributions" to calculate my tax? If so, I can save several thousand dollars by using the "10 year tax" option.
How can I find out if this is a "qualified" plan, and if it is NOT, is there anything else that I can do to reduce my tax on this amount?
Thank you in advance!
1) A letter saying that the check was issued as a result of a "class action settlement with XYZ Co. retirement. This is taxable income to you for 1999"
2) A copy of another check, sent to IRS, in my name, as withholding, which was 20% of the total amount.
3) A "SCHEDULE K-1 - Form 1041," issued in my name, where the entire amount (less admin. costs) is listed under "Other" and noted as a "PENSION DISTRIUTION. - XYZ co." (line 41c).
My question is, can I consider this a "Qualified Retirement Plan" distribution, and can I use form 4972, "Tax on Lump-Sum Distributions" to calculate my tax? If so, I can save several thousand dollars by using the "10 year tax" option.
How can I find out if this is a "qualified" plan, and if it is NOT, is there anything else that I can do to reduce my tax on this amount?
Thank you in advance!