New York
I have a question about a 1099R.
The distribution is from a 503 Plan, an employee welfare benefit plan employer fully contributed plan designed for Vacation, Holiday, Unemployment Plan.
The IRS seems to consider it falls under an early withdrawl penalty from a Pension or Annuity.
Also a previous accountant must have struggled with how to classify it, and the IRS kicked back his choice of exclusion as taxable income, and the adjustment ends up being an $1,800.00 tax bill.
Can someone explain this type of annuity distribution, the benefits explanation from the union, their explanation hasn't helped me understand. I feel like it should be a simple additional income, but I appear to be the only one with that thought.
Thank You
I have a question about a 1099R.
The distribution is from a 503 Plan, an employee welfare benefit plan employer fully contributed plan designed for Vacation, Holiday, Unemployment Plan.
The IRS seems to consider it falls under an early withdrawl penalty from a Pension or Annuity.
Also a previous accountant must have struggled with how to classify it, and the IRS kicked back his choice of exclusion as taxable income, and the adjustment ends up being an $1,800.00 tax bill.
Can someone explain this type of annuity distribution, the benefits explanation from the union, their explanation hasn't helped me understand. I feel like it should be a simple additional income, but I appear to be the only one with that thought.
Thank You