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Where Get State Tax Forms

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Where Get State Tax Forms

Where get state tax forms Internal Revenue Bulletin:  2009-17  April 27, 2009  Rev. Where get state tax forms Proc. Where get state tax forms 2009-24 Table of Contents SECTION 1. Where get state tax forms PURPOSE SECTION 2. Where get state tax forms BACKGROUND SECTION 3. Where get state tax forms SCOPE SECTION 4. Where get state tax forms APPLICATION. Where get state tax forms 01 In General. Where get state tax forms . Where get state tax forms 02 Limitations on Depreciation Deductions for Certain Automobiles. Where get state tax forms . Where get state tax forms 03 Inclusions in Income of Lessees of Passenger Automobiles. Where get state tax forms SECTION 5. Where get state tax forms EFFECTIVE DATE SECTION 6. Where get state tax forms DRAFTING INFORMATION SECTION 1. Where get state tax forms PURPOSE . Where get state tax forms 01 This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2009, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2009, including a separate table of inclusion amounts for lessees of trucks and vans. Where get state tax forms . Where get state tax forms 02 The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Where get state tax forms SECTION 2. Where get state tax forms BACKGROUND . Where get state tax forms 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year that the passenger automobile is placed in service by the taxpayer and each succeeding year. Where get state tax forms Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. Where get state tax forms The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Where get state tax forms This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988. Where get state tax forms . Where get state tax forms 02 Section 168(k)(1)(A) provides a 50 percent additional first year depreciation deduction for certain new property acquired by a taxpayer after December 31, 2007, and before January 1, 2010, if no written binding contract for the acquisition of the property existed before January 1, 2008. Where get state tax forms Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A) by $8,000 for passenger automobiles to which the 50 percent additional first year depreciation deduction applies. Where get state tax forms . Where get state tax forms 03 Section 168(k)(2)(D)(i) provides that the 50 percent additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Where get state tax forms Section 168(k)(2)(D)(iii) permits a taxpayer to elect to not claim the 50 percent additional first year depreciation deduction for any class of property. Where get state tax forms Section 168(k)(4) permits a corporation to elect to not claim the 50 percent additional first year depreciation deduction for all eligible qualified property (that is extension property or that is not extension property, as applicable) and instead to increase the business credit limitation under § 38(c) or the alternative minimum tax credit limitation under § 53(c). Where get state tax forms Accordingly, this revenue procedure provides tables for passenger automobiles for which the 50 percent additional depreciation deduction applies and tables for passenger automobiles for which the 50 percent additional first year depreciation deduction does not apply, including passenger automobiles in a class of property for which the taxpayer “elects out” of the 50 percent additional first year depreciation deduction or passenger automobiles that are eligible qualified property to which the § 168(k)(4) election applies. Where get state tax forms . Where get state tax forms 04 For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. Where get state tax forms The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Where get state tax forms Under § 1. Where get state tax forms 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. Where get state tax forms One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Where get state tax forms Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Where get state tax forms SECTION 3. Where get state tax forms SCOPE . Where get state tax forms 01 The limitations on depreciation deductions in section 4. Where get state tax forms 02(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2009, and continue to apply for each taxable year that the passenger automobile remains in service. Where get state tax forms . Where get state tax forms 02 The tables in section 4. Where get state tax forms 03 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2009. Where get state tax forms Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Where get state tax forms See Rev. Where get state tax forms Proc. Where get state tax forms 2002-14, 2002-1 C. Where get state tax forms B. Where get state tax forms 450, for passenger automobiles first leased before January 1, 2003, Rev. Where get state tax forms Proc. Where get state tax forms 2003-75, 2003-2 C. Where get state tax forms B. Where get state tax forms 1018, for passenger automobiles first leased during calendar year 2003, Rev. Where get state tax forms Proc. Where get state tax forms 2004-20, 2004-1 C. Where get state tax forms B. Where get state tax forms 642, for passenger automobiles first leased during calendar year 2004, Rev. Where get state tax forms Proc. Where get state tax forms 2005-13, 2005-1 C. Where get state tax forms B. Where get state tax forms 759, for passenger automobiles first leased during calendar year 2005, Rev. Where get state tax forms Proc. Where get state tax forms 2006-18, 2006-1 C. Where get state tax forms B. Where get state tax forms 645, for passenger automobiles first leased during calendar year 2006, Rev. Where get state tax forms Proc. Where get state tax forms 2007-30, 2007-1 C. Where get state tax forms B. Where get state tax forms 1104, for passenger automobiles first leased during calendar year 2007, and Rev. Where get state tax forms Proc. Where get state tax forms 2008-22, 2008-12 I. Where get state tax forms R. Where get state tax forms B. Where get state tax forms 658, for passenger automobiles first leased during calendar year 2008. Where get state tax forms SECTION 4. Where get state tax forms APPLICATION . Where get state tax forms 01 In General. Where get state tax forms (1) Limitations on depreciation deductions for certain automobiles. Where get state tax forms The limitations on depreciation deductions for passenger automobiles placed in service by the taxpayer for the first time during calendar year 2009 are in Tables 1 through 4 in section 4. Where get state tax forms 02(2) of this revenue procedure. Where get state tax forms (2) Inclusions in income of lessees of passenger automobiles. Where get state tax forms A taxpayer first leasing a passenger automobile during calendar year 2009 must determine the inclusion amount that is added to gross income using Tables 5 and 6 in section 4. Where get state tax forms 03 of this revenue procedure. Where get state tax forms In addition, the taxpayer must follow the procedures of § 1. Where get state tax forms 280F-7(a). Where get state tax forms . Where get state tax forms 02 Limitations on Depreciation Deductions for Certain Automobiles. Where get state tax forms (1) Amount of the inflation adjustment. Where get state tax forms (a) Passenger automobiles (other than trucks or vans). Where get state tax forms Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Where get state tax forms The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Where get state tax forms The new car component of the CPI was 115. Where get state tax forms 2 for October 1987 and 134. Where get state tax forms 837 for October 2008. Where get state tax forms The October 2008 index exceeded the October 1987 index by 19. Where get state tax forms 637. Where get state tax forms The Internal Revenue Service has, therefore, determined that the automobile price inflation adjustment for 2009 for passenger automobiles (other than trucks and vans) is 17. Where get state tax forms 05 percent (19. Where get state tax forms 637/115. Where get state tax forms 2 x 100%). Where get state tax forms This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2009. Where get state tax forms The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. Where get state tax forms 1705, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2009. Where get state tax forms (b) Trucks and vans. Where get state tax forms To determine the dollar limitations applicable to trucks and vans first placed in service during calendar year 2009, the new truck component of the CPI is used instead of the new car component. Where get state tax forms The new truck component of the CPI was 112. Where get state tax forms 4 for October 1987 and 133. Where get state tax forms 640 for October 2008. Where get state tax forms The October 2008 index exceeded the October 1987 index by 21. Where get state tax forms 24. Where get state tax forms The Service has, therefore, determined that the automobile price inflation adjustment for 2009 for trucks and vans is 18. Where get state tax forms 90 percent (21. Where get state tax forms 24/112. Where get state tax forms 4 x 100%). Where get state tax forms This adjustment is applicable to all trucks and vans that are first placed in service in calendar year 2009. Where get state tax forms The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. Where get state tax forms 1890, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to trucks and vans. Where get state tax forms (2) Amount of the limitation. Where get state tax forms For passenger automobiles placed in service by the taxpayer in calendar year 2009, Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year. Where get state tax forms Use Table 1 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a passenger automobile (other than a truck or van) in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a passenger automobile that is eligible qualified property to which the § 168(k)(4) election applies. Where get state tax forms Use Table 2 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. Where get state tax forms Use Table 3 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a truck or van in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a truck or van that is eligible qualified property to which the § 168(k)(4) election applies. Where get state tax forms Use Table 4 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. Where get state tax forms REV. Where get state tax forms PROC. Where get state tax forms 2009-24 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $2,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. Where get state tax forms PROC. Where get state tax forms 2009-24 TABLE 2 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $10,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. Where get state tax forms PROC. Where get state tax forms 2009-24 TABLE 3 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Where get state tax forms PROC. Where get state tax forms 2009-24 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 . Where get state tax forms 03 Inclusions in Income of Lessees of Passenger Automobiles. Where get state tax forms The inclusion amounts for passenger automobiles first leased in calendar year 2009 are calculated under the procedures described in § 1. Where get state tax forms 280F-7(a). Where get state tax forms Lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure in applying these procedures, while lessees of trucks and vans should use Table 6 of this revenue procedure. Where get state tax forms REV. Where get state tax forms PROC. Where get state tax forms 2009-24 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 9 19 28 34 38 19,000 19,500 10 21 32 38 43 19,500 20,000 11 24 36 42 48 20,000 20,500 12 27 39 46 54 20,500 21,000 13 29 43 51 58 21,000 21,500 15 31 47 55 64 21,500 22,000 16 34 50 60 68 22,000 23,000 17 38 56 66 76 23,000 24,000 20 42 64 75 86 24,000 25,000 22 47 71 84 96 25,000 26,000 24 52 78 93 107 26,000 27,000 26 58 85 101 117 27,000 28,000 29 62 93 110 127 28,000 29,000 31 67 100 119 138 29,000 30,000 33 72 108 128 147 30,000 31,000 35 77 115 137 157 31,000 32,000 38 82 122 146 167 32,000 33,000 40 87 129 155 178 33,000 34,000 42 92 137 163 188 34,000 35,000 44 97 144 172 199 35,000 36,000 47 102 151 181 208 36,000 37,000 49 107 159 189 219 37,000 38,000 51 112 166 199 228 38,000 39,000 53 117 173 208 239 39,000 40,000 56 122 180 216 250 40,000 41,000 58 127 188 225 259 41,000 42,000 60 132 195 234 269 42,000 43,000 62 137 203 242 280 43,000 44,000 65 141 210 252 290 44,000 45,000 67 146 218 260 300 45,000 46,000 69 151 225 269 311 46,000 47,000 71 157 232 278 320 47,000 48,000 74 161 240 286 331 48,000 49,000 76 166 247 296 340 49,000 50,000 78 171 255 304 351 50,000 51,000 80 176 262 313 361 51,000 52,000 83 181 269 322 371 52,000 53,000 85 186 276 331 381 53,000 54,000 87 191 284 339 392 54,000 55,000 89 196 291 349 401 55,000 56,000 92 201 298 357 412 56,000 57,000 94 206 306 365 423 57,000 58,000 96 211 313 375 432 58,000 59,000 98 216 320 384 442 59,000 60,000 101 221 327 393 452 60,000 62,000 104 228 339 406 467 62,000 64,000 109 238 353 424 488 64,000 66,000 113 248 368 441 509 66,000 68,000 118 258 382 459 529 68,000 70,000 122 268 397 476 550 70,000 72,000 127 277 413 493 570 72,000 74,000 131 288 427 511 590 74,000 76,000 136 297 442 529 610 76,000 78,000 140 307 457 546 631 78,000 80,000 145 317 471 564 651 80,000 85,000 152 335 497 595 686 85,000 90,000 164 359 534 639 737 90,000 95,000 175 384 570 683 789 95,000 100,000 186 409 607 727 839 100,000 110,000 203 446 662 793 916 110,000 120,000 226 495 736 881 1,018 120,000 130,000 248 545 809 970 1,119 130,000 140,000 271 594 883 1,058 1,220 140,000 150,000 293 644 956 1,146 1,322 150,000 160,000 316 693 1,030 1,234 1,424 160,000 170,000 338 743 1,103 1,322 1,526 170,000 180,000 361 792 1,177 1,410 1,628 180,000 190,000 383 842 1,250 1,498 1,730 190,000 200,000 406 891 1,324 1,586 1,831 200,000 210,000 428 941 1,397 1,675 1,932 210,000 220,000 451 990 1,471 1,762 2,035 220,000 230,000 473 1,040 1,544 1,851 2,136 230,000 240,000 496 1,089 1,618 1,939 2,238 240,000 And up 518 1,139 1,691 2,027 2,340 REV. Where get state tax forms PROC. Where get state tax forms 2009-24 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Electric Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th and Later $18,500 $19,000 8 17 25 30 35 19,000 19,500 9 19 29 35 40 19,500 20,000 10 22 33 38 45 20,000 20,500 11 25 36 43 50 20,500 21,000 12 27 40 48 55 21,000 21,500 13 30 43 52 60 21,500 22,000 15 32 47 56 66 22,000 23,000 16 36 52 64 72 23,000 24,000 18 41 60 72 83 24,000 25,000 21 45 68 81 93 25,000 26,000 23 50 75 90 103 26,000 27,000 25 56 82 98 114 27,000 28,000 27 61 89 107 124 28,000 29,000 30 65 97 116 134 29,000 30,000 32 70 104 125 144 30,000 31,000 34 75 112 134 154 31,000 32,000 36 80 119 143 164 32,000 33,000 39 85 126 151 175 33,000 34,000 41 90 134 160 184 34,000 35,000 43 95 141 169 195 35,000 36,000 45 100 148 178 205 36,000 37,000 48 105 155 187 215 37,000 38,000 50 110 163 195 226 38,000 39,000 52 115 170 204 236 39,000 40,000 55 120 177 213 246 40,000 41,000 57 125 185 221 256 41,000 42,000 59 130 192 231 266 42,000 43,000 61 135 199 240 276 43,000 44,000 64 139 207 249 286 44,000 45,000 66 144 215 257 296 45,000 46,000 68 149 222 266 307 46,000 47,000 70 155 229 274 317 47,000 48,000 73 159 237 283 327 48,000 49,000 75 164 244 292 338 49,000 50,000 77 169 251 301 348 50,000 51,000 79 174 259 310 357 51,000 52,000 82 179 266 318 368 52,000 53,000 84 184 273 328 378 53,000 54,000 86 189 281 336 388 54,000 55,000 88 194 288 345 399 55,000 56,000 91 199 295 354 408 56,000 57,000 93 204 302 363 419 57,000 58,000 95 209 310 371 429 58,000 59,000 97 214 317 381 439 59,000 60,000 100 219 324 389 450 60,000 62,000 103 226 336 402 465 62,000 64,000 107 236 351 420 485 64,000 66,000 112 246 365 438 505 66,000 68,000 116 256 380 455 526 68,000 70,000 121 266 394 473 546 70,000 72,000 125 276 409 491 566 72,000 74,000 130 286 423 509 586 74,000 76,000 134 296 438 526 607 76,000 78,000 139 305 454 543 627 78,000 80,000 143 316 467 561 648 80,000 85,000 151 333 493 592 684 85,000 90,000 163 357 531 635 735 90,000 95,000 174 382 567 680 785 95,000 100,000 185 407 604 724 836 100,000 110,000 202 444 659 790 912 110,000 120,000 225 493 733 878 1,014 120,000 130,000 247 543 806 966 1,116 130,000 140,000 270 592 880 1,054 1,218 140,000 150,000 292 642 953 1,143 1,319 150,000 160,000 315 691 1,027 1,230 1,421 160,000 170,000 337 741 1,100 1,319 1,522 170,000 180,000 360 790 1,174 1,407 1,624 180,000 190,000 382 840 1,247 1,495 1,726 190,000 200,000 405 889 1,321 1,583 1,828 200,000 210,000 427 939 1,394 1,671 1,930 210,000 220,000 450 988 1,468 1,759 2,031 220,000 230,000 472 1,038 1,541 1,847 2,134 230,000 240,000 495 1,087 1,615 1,935 2,235 240,000 and up 517 1,137 1,688 2,024 2,336 SECTION 5. Where get state tax forms EFFECTIVE DATE This revenue procedure applies to passenger automobiles (other than leased passenger automobiles) that are first placed in service by a taxpayer during calendar year 2009, and to leased passenger automobiles that are first leased by a taxpayer during calendar year 2009. Where get state tax forms SECTION 6. Where get state tax forms DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Where get state tax forms Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Where get state tax forms For further information regarding this revenue procedure, contact Mr. Where get state tax forms Harvey at (202) 622-4930 (not a toll-free call). Where get state tax forms Prev  Up  Next   Home   More Internal Revenue Bulletins
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The Where Get State Tax Forms

Where get state tax forms 4. Where get state tax forms   Qualified Plans Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Kinds of PlansDefined Contribution Plan Defined Benefit Plan Qualification RulesEarly retirement. Where get state tax forms Loan secured by benefits. Where get state tax forms Waiver of survivor benefits. Where get state tax forms Waiver of 30-day waiting period before annuity starting date. Where get state tax forms Involuntary cash-out of benefits not more than dollar limit. Where get state tax forms Exception for certain loans. Where get state tax forms Exception for QDRO. Where get state tax forms SIMPLE and safe harbor 401(k) plan exception. Where get state tax forms Setting Up a Qualified PlanAdopting a Written Plan Investing Plan Assets Minimum Funding RequirementDue dates. Where get state tax forms Installment percentage. Where get state tax forms Extended period for making contributions. Where get state tax forms ContributionsEmployer Contributions Employee Contributions When Contributions Are Considered Made Employer DeductionDeduction Limits Deduction Limit for Self-Employed Individuals Where To Deduct Contributions Carryover of Excess Contributions Excise Tax for Nondeductible (Excess) Contributions Elective Deferrals (401(k) Plans)Limit on Elective Deferrals Automatic Enrollment Treatment of Excess Deferrals Qualified Roth Contribution ProgramElective Deferrals Qualified Distributions Reporting Requirements DistributionsRequired Distributions Distributions From 401(k) Plans Tax Treatment of Distributions Tax on Early Distributions Tax on Excess Benefits Excise Tax on Reversion of Plan Assets Notification of Significant Benefit Accrual Reduction Prohibited TransactionsTax on Prohibited Transactions Reporting RequirementsOne-participant plan. Where get state tax forms Caution: Form 5500-EZ not required. Where get state tax forms Form 5500. Where get state tax forms Electronic filing of Forms 5500 and 5500-SF. Where get state tax forms Topics - This chapter discusses: Kinds of plans Qualification rules Setting up a qualified plan Minimum funding requirement Contributions Employer deduction Elective deferrals (401(k) plans) Qualified Roth contribution program Distributions Prohibited transactions Reporting requirements Useful Items - You may want to see: Publications 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 3066 Have you had your Check-up this year? for Retirement Plans 3998 Choosing A Retirement Solution for Your Small Business 4222 401(k) Plans for Small Businesses 4530 Designated Roth Accounts under a 401(k), 403(b), or governmental 457(b) plans 4531 401(k) Plan Checklist 4674 Automatic Enrollment 401(k) Plans for Small Businesses 4806 Profit Sharing Plans for Small Businesses Forms (and Instructions) www. Where get state tax forms dol. Where get state tax forms gov/ebsa/pdf/2013-5500. Where get state tax forms pdf www. Where get state tax forms dol. Where get state tax forms gov/ebsa/pdf/2013-5500-SF. Where get state tax forms pdf W-2 Wage and Tax Statement Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Where get state tax forms 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Where get state tax forms 1040 U. Where get state tax forms S. Where get state tax forms Individual Income Tax Return Schedule C (Form 1040) Profit or Loss From Business Schedule F (Form 1040) Profit or Loss From Farming 5300 Application for Determination for Employee Benefit Plan 5310 Application for Determination for Terminating Plan 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5330 Return of Excise Taxes Related to Employee Benefit Plans 5500 Annual Return/Report of Employee Benefit Plan. Where get state tax forms For copies of this form, go to: 5500-EZ Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan 5500-SF Short Form Annual Return/Report of Small Employee Benefit Plan. Where get state tax forms For copies of this form, go to: 8717 User Fee for Employee Plan Determination Letter Request 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs 8955-SSA Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits These qualified retirement plans set up by self-employed individuals are sometimes called Keogh or H. Where get state tax forms R. Where get state tax forms 10 plans. Where get state tax forms A sole proprietor or a partnership can set up one of these plans. Where get state tax forms A common-law employee or a partner cannot set up one of these plans. Where get state tax forms The plans described here can also be set up and maintained by employers that are corporations. Where get state tax forms All the rules discussed here apply to corporations except where specifically limited to the self-employed. Where get state tax forms The plan must be for the exclusive benefit of employees or their beneficiaries. Where get state tax forms These qualified plans can include coverage for a self-employed individual. Where get state tax forms As an employer, you can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. Where get state tax forms The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. Where get state tax forms Kinds of Plans There are two basic kinds of qualified plans—defined contribution plans and defined benefit plans—and different rules apply to each. Where get state tax forms You can have more than one qualified plan, but your contributions to all the plans must not total more than the overall limits discussed under Contributions and Employer Deduction, later. Where get state tax forms Defined Contribution Plan A defined contribution plan provides an individual account for each participant in the plan. Where get state tax forms It provides benefits to a participant largely based on the amount contributed to that participant's account. Where get state tax forms Benefits are also affected by any income, expenses, gains, losses, and forfeitures of other accounts that may be allocated to an account. Where get state tax forms A defined contribution plan can be either a profit-sharing plan or a money purchase pension plan. Where get state tax forms Profit-sharing plan. Where get state tax forms   Although it is called a “profit-sharing plan,” you do not actually have to make a business profit for the year in order to make a contribution (except for yourself if you are self-employed as discussed under Self-employed Individual, later). Where get state tax forms A profit-sharing plan can be set up to allow for discretionary employer contributions, meaning the amount contributed each year to the plan is not fixed. Where get state tax forms An employer may even make no contribution to the plan for a given year. Where get state tax forms   The plan must provide a definite formula for allocating the contribution among the participants and for distributing the accumulated funds to the employees after they reach a certain age, after a fixed number of years, or upon certain other occurrences. Where get state tax forms   In general, you can be more flexible in making contributions to a profit-sharing plan than to a money purchase pension plan (discussed next) or a defined benefit plan (discussed later). Where get state tax forms Money purchase pension plan. Where get state tax forms   Contributions to a money purchase pension plan are fixed and are not based on your business profits. Where get state tax forms For example, if the plan requires that contributions be 10% of the participants' compensation without regard to whether you have profits (or the self-employed person has earned income), the plan is a money purchase pension plan. Where get state tax forms This applies even though the compensation of a self-employed individual as a participant is based on earned income derived from business profits. Where get state tax forms Defined Benefit Plan A defined benefit plan is any plan that is not a defined contribution plan. Where get state tax forms Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. Where get state tax forms Actuarial assumptions and computations are required to figure these contributions. Where get state tax forms Generally, you will need continuing professional help to have a defined benefit plan. Where get state tax forms Qualification Rules To qualify for the tax benefits available to qualified plans, a plan must meet certain requirements (qualification rules) of the tax law. Where get state tax forms Generally, unless you write your own plan, the financial institution that provided your plan will take the continuing responsibility for meeting qualification rules that are later changed. Where get state tax forms The following is a brief overview of important qualification rules that generally have not yet been discussed. Where get state tax forms It is not intended to be all-inclusive. Where get state tax forms See Setting Up a Qualified Plan , later. Where get state tax forms Generally, the following qualification rules also apply to a SIMPLE 401(k) retirement plan. Where get state tax forms A SIMPLE 401(k) plan is, however, not subject to the top-heavy plan rules and nondiscrimination rules if the plan satisfies the provisions discussed in chapter 3 under SIMPLE 401(k) Plan. Where get state tax forms Plan assets must not be diverted. Where get state tax forms   Your plan must make it impossible for its assets to be used for, or diverted to, purposes other than the benefit of employees and their beneficiaries. Where get state tax forms As a general rule, the assets cannot be diverted to the employer. Where get state tax forms Minimum coverage requirement must be met. Where get state tax forms   To be a qualified plan, a defined benefit plan must benefit at least the lesser of the following. Where get state tax forms 50 employees, or The greater of: 40% of all employees, or Two employees. Where get state tax forms If there is only one employee, the plan must benefit that employee. Where get state tax forms Contributions or benefits must not discriminate. Where get state tax forms   Under the plan, contributions or benefits to be provided must not discriminate in favor of highly compensated employees. Where get state tax forms Contributions and benefits must not be more than certain limits. Where get state tax forms   Your plan must not provide for contributions or benefits that are more than certain limits. Where get state tax forms The limits apply to the annual contributions and other additions to the account of a participant in a defined contribution plan and to the annual benefit payable to a participant in a defined benefit plan. Where get state tax forms These limits are discussed later in this chapter under Contributions. Where get state tax forms Minimum vesting standard must be met. Where get state tax forms   Your plan must satisfy certain requirements regarding when benefits vest. Where get state tax forms A benefit is vested (you have a fixed right to it) when it becomes nonforfeitable. Where get state tax forms A benefit is nonforfeitable if it cannot be lost upon the happening, or failure to happen, of any event. Where get state tax forms Special rules apply to forfeited benefit amounts. Where get state tax forms In defined contribution plans, forfeitures can be allocated to the accounts of remaining participants in a nondiscriminatory way, or they can be used to reduce your contributions. Where get state tax forms   Forfeitures under a defined benefit plan cannot be used to increase the benefits any employee would otherwise receive under the plan. Where get state tax forms Forfeitures must be used instead to reduce employer contributions. Where get state tax forms Participation. Where get state tax forms   In general, an employee must be allowed to participate in your plan if he or she meets both the following requirements. Where get state tax forms Has reached age 21. Where get state tax forms Has at least 1 year of service (2 years if the plan is not a 401(k) plan and provides that after not more than 2 years of service the employee has a nonforfeitable right to all his or her accrued benefit). Where get state tax forms A plan cannot exclude an employee because he or she has reached a specified age. Where get state tax forms Leased employee. Where get state tax forms   A leased employee, defined in chapter 1, who performs services for you (recipient of the services) is treated as your employee for certain plan qualification rules. Where get state tax forms These rules include those in all the following areas. Where get state tax forms Nondiscrimination in coverage, contributions, and benefits. Where get state tax forms Minimum age and service requirements. Where get state tax forms Vesting. Where get state tax forms Limits on contributions and benefits. Where get state tax forms Top-heavy plan requirements. Where get state tax forms Contributions or benefits provided by the leasing organization for services performed for you are treated as provided by you. Where get state tax forms Benefit payment must begin when required. Where get state tax forms   Your plan must provide that, unless the participant chooses otherwise, the payment of benefits to the participant must begin within 60 days after the close of the latest of the following periods. Where get state tax forms The plan year in which the participant reaches the earlier of age 65 or the normal retirement age specified in the plan. Where get state tax forms The plan year in which the 10th anniversary of the year in which the participant began participating in the plan occurs. Where get state tax forms The plan year in which the participant separates from service. Where get state tax forms Early retirement. Where get state tax forms   Your plan can provide for payment of retirement benefits before the normal retirement age. Where get state tax forms If your plan offers an early retirement benefit, a participant who separates from service before satisfying the early retirement age requirement is entitled to that benefit if he or she meets both the following requirements. Where get state tax forms Satisfies the service requirement for the early retirement benefit. Where get state tax forms Separates from service with a nonforfeitable right to an accrued benefit. Where get state tax forms The benefit, which may be actuarially reduced, is payable when the early retirement age requirement is met. Where get state tax forms Required minimum distributions. Where get state tax forms   Special rules require minimum annual distributions from qualified plans, generally beginning after age  70½. Where get state tax forms See Required Distributions , under Distributions, later. Where get state tax forms Survivor benefits. Where get state tax forms   Defined benefit and money purchase pension plans must provide automatic survivor benefits in both the following forms. Where get state tax forms A qualified joint and survivor annuity for a vested participant who does not die before the annuity starting date. Where get state tax forms A qualified pre-retirement survivor annuity for a vested participant who dies before the annuity starting date and who has a surviving spouse. Where get state tax forms   The automatic survivor benefit also applies to any participant under a profit-sharing plan unless all the following conditions are met. Where get state tax forms The participant does not choose benefits in the form of a life annuity. Where get state tax forms The plan pays the full vested account balance to the participant's surviving spouse (or other beneficiary if the surviving spouse consents or if there is no surviving spouse) if the participant dies. Where get state tax forms The plan is not a direct or indirect transferee of a plan that must provide automatic survivor benefits. Where get state tax forms Loan secured by benefits. Where get state tax forms   If automatic survivor benefits are required for a spouse under a plan, he or she must consent to a loan that uses as security the accrued benefits in the plan. Where get state tax forms Waiver of survivor benefits. Where get state tax forms   Each plan participant may be permitted to waive the joint and survivor annuity or the pre-retirement survivor annuity (or both), but only if the participant has the written consent of the spouse. Where get state tax forms The plan also must allow the participant to withdraw the waiver. Where get state tax forms The spouse's consent must be witnessed by a plan representative or notary public. Where get state tax forms Waiver of 30-day waiting period before annuity starting date. Where get state tax forms    A plan may permit a participant to waive (with spousal consent) the 30-day minimum waiting period after a written explanation of the terms and conditions of a joint and survivor annuity is provided to each participant. Where get state tax forms   The waiver is allowed only if the distribution begins more than 7 days after the written explanation is provided. Where get state tax forms Involuntary cash-out of benefits not more than dollar limit. Where get state tax forms   A plan may provide for the immediate distribution of the participant's benefit under the plan if the present value of the benefit is not greater than $5,000. Where get state tax forms   However, the distribution cannot be made after the annuity starting date unless the participant and the spouse or surviving spouse of a participant who died (if automatic survivor benefits are required for a spouse under the plan) consents in writing to the distribution. Where get state tax forms If the present value is greater than $5,000, the plan must have the written consent of the participant and the spouse or surviving spouse (if automatic survivor benefits are required for a spouse under the plan) for any immediate distribution of the benefit. Where get state tax forms   Benefits attributable to rollover contributions and earnings on them can be ignored in determining the present value of these benefits. Where get state tax forms   A plan must provide for the automatic rollover of any cash-out distribution of more than $1,000 to an individual retirement account or annuity, unless the participant chooses otherwise. Where get state tax forms A section 402(f) notice must be sent prior to an involuntary cash-out of an eligible rollover distribution. Where get state tax forms See Section 402(f) Notice under Distributions, later, for more details. Where get state tax forms Consolidation, merger, or transfer of assets or liabilities. Where get state tax forms   Your plan must provide that, in the case of any merger or consolidation with, or transfer of assets or liabilities to, any other plan, each participant would (if the plan then terminated) receive a benefit equal to or more than the benefit he or she would have been entitled to just before the merger, etc. Where get state tax forms (if the plan had then terminated). Where get state tax forms Benefits must not be assigned or alienated. Where get state tax forms   Your plan must provide that a participant's or beneficiary's benefits under the plan cannot be taken away by any legal or equitable proceeding except as provided below or pursuant to certain judgements or settlements against the participant for violations of plan rules. Where get state tax forms Exception for certain loans. Where get state tax forms   A loan from the plan (not from a third party) to a participant or beneficiary is not treated as an assignment or alienation if the loan is secured by the participant's accrued nonforfeitable benefit and is exempt from the tax on prohibited transactions under section 4975(d)(1) or would be exempt if the participant were a disqualified person. Where get state tax forms A disqualified person is defined later in this chapter under Prohibited Transactions. Where get state tax forms Exception for QDRO. Where get state tax forms   Compliance with a QDRO (qualified domestic relations order) does not result in a prohibited assignment or alienation of benefits. Where get state tax forms   Payments to an alternate payee under a QDRO before the participant attains age 59½ are not subject to the 10% additional tax that would otherwise apply under certain circumstances. Where get state tax forms Benefits distributed to an alternate payee under a QDRO can be rolled over tax free to an individual retirement account or to an individual retirement annuity. Where get state tax forms No benefit reduction for social security increases. Where get state tax forms   Your plan must not permit a benefit reduction for a post-separation increase in the social security benefit level or wage base for any participant or beneficiary who is receiving benefits under your plan, or who is separated from service and has nonforfeitable rights to benefits. Where get state tax forms This rule also applies to plans supplementing the benefits provided by other federal or state laws. Where get state tax forms Elective deferrals must be limited. Where get state tax forms   If your plan provides for elective deferrals, it must limit those deferrals to the amount in effect for that particular year. Where get state tax forms See Limit on Elective Deferrals later in this chapter. Where get state tax forms Top-heavy plan requirements. Where get state tax forms   A top-heavy plan is one that mainly favors partners, sole proprietors, and other key employees. Where get state tax forms   A plan is top-heavy for a plan year if, for the preceding plan year, the total value of accrued benefits or account balances of key employees is more than 60% of the total value of accrued benefits or account balances of all employees. Where get state tax forms Additional requirements apply to a top-heavy plan primarily to provide minimum benefits or contributions for non-key employees covered by the plan. Where get state tax forms   Most qualified plans, whether or not top-heavy, must contain provisions that meet the top-heavy requirements and will take effect in plan years in which the plans are top-heavy. Where get state tax forms These qualification requirements for top-heavy plans are explained in section 416 and its regulations. Where get state tax forms SIMPLE and safe harbor 401(k) plan exception. Where get state tax forms   The top-heavy plan requirements do not apply to SIMPLE 401(k) plans, discussed earlier in chapter 3, or to safe harbor 401(k) plans that consist solely of safe harbor contributions, discussed later in this chapter. Where get state tax forms QACAs (discussed later) also are not subject to top-heavy requirements. Where get state tax forms Setting Up a Qualified Plan There are two basic steps in setting up a qualified plan. Where get state tax forms First you adopt a written plan. Where get state tax forms Then you invest the plan assets. Where get state tax forms You, the employer, are responsible for setting up and maintaining the plan. Where get state tax forms If you are self-employed, it is not necessary to have employees besides yourself to sponsor and set up a qualified plan. Where get state tax forms If you have employees, see Participation, under Qualification Rules, earlier. Where get state tax forms Set-up deadline. Where get state tax forms   To take a deduction for contributions for a tax year, your plan must be set up (adopted) by the last day of that year (December 31 for calendar-year employers). Where get state tax forms Credit for startup costs. Where get state tax forms   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a qualified plan that first became effective in 2013. Where get state tax forms For more information, see Credit for startup costs under Reminders, earlier. Where get state tax forms Adopting a Written Plan You must adopt a written plan. Where get state tax forms The plan can be an IRS-approved master or prototype plan offered by a sponsoring organization. Where get state tax forms Or it can be an individually designed plan. Where get state tax forms Written plan requirement. Where get state tax forms   To qualify, the plan you set up must be in writing and must be communicated to your employees. Where get state tax forms The plan's provisions must be stated in the plan. Where get state tax forms It is not sufficient for the plan to merely refer to a requirement of the Internal Revenue Code. Where get state tax forms Master or prototype plans. Where get state tax forms   Most qualified plans follow a standard form of plan (a master or prototype plan) approved by the IRS. Where get state tax forms Master and prototype plans are plans made available by plan providers for adoption by employers (including self-employed individuals). Where get state tax forms Under a master plan, a single trust or custodial account is established, as part of the plan, for the joint use of all adopting employers. Where get state tax forms Under a prototype plan, a separate trust or custodial account is established for each employer. Where get state tax forms Plan providers. Where get state tax forms   The following organizations generally can provide IRS-approved master or prototype plans. Where get state tax forms Banks (including some savings and loan associations and federally insured credit unions). Where get state tax forms Trade or professional organizations. Where get state tax forms Insurance companies. Where get state tax forms Mutual funds. Where get state tax forms Individually designed plan. Where get state tax forms   If you prefer, you can set up an individually designed plan to meet specific needs. Where get state tax forms Although advance IRS approval is not required, you can apply for approval by paying a fee and requesting a determination letter. Where get state tax forms You may need professional help for this. Where get state tax forms See Rev. Where get state tax forms Proc. Where get state tax forms 2014-6, 2014-1 I. Where get state tax forms R. Where get state tax forms B. Where get state tax forms 198, available at www. Where get state tax forms irs. Where get state tax forms gov/irb/2014-1_IRB/ar10. Where get state tax forms html, as annually updated, that may help you decide whether to apply for approval. Where get state tax forms Internal Revenue Bulletins are available on the IRS website at IRS. Where get state tax forms gov They are also available at most IRS offices and at certain libraries. Where get state tax forms User fee. Where get state tax forms   The fee mentioned earlier for requesting a determination letter does not apply to employers who have 100 or fewer employees who received at least $5,000 of compensation from the employer for the preceding year. Where get state tax forms At least one of them must be a non-highly compensated employee participating in the plan. Where get state tax forms The fee does not apply to requests made by the later of the following dates. Where get state tax forms The end of the 5th plan year the plan is in effect. Where get state tax forms The end of any remedial amendment period for the plan that begins within the first 5 plan years. Where get state tax forms The request cannot be made by the sponsor of a prototype or similar plan the sponsor intends to market to participating employers. Where get state tax forms   For more information about whether the user fee applies, see Rev. Where get state tax forms Proc. Where get state tax forms 2014-8, 2014-1 I. Where get state tax forms R. Where get state tax forms B. Where get state tax forms 242, available at www. Where get state tax forms irs. Where get state tax forms gov/irb/2014-1_IRB/ar12. Where get state tax forms html, as may be annually updated; Notice 2003-49, 2003-32 I. Where get state tax forms R. Where get state tax forms B. Where get state tax forms 294, available at www. Where get state tax forms irs. Where get state tax forms gov/irb/2003-32_IRB/ar13. Where get state tax forms html; and Notice 2011-86, 2011-45 I. Where get state tax forms R. Where get state tax forms B. Where get state tax forms 698, available at www. Where get state tax forms irs. Where get state tax forms gov/irb/2011-45_IRB/ar11. Where get state tax forms html. Where get state tax forms Investing Plan Assets In setting up a qualified plan, you arrange how the plan's funds will be used to build its assets. Where get state tax forms You can establish a trust or custodial account to invest the funds. Where get state tax forms You, the trust, or the custodial account can buy an annuity contract from an insurance company. Where get state tax forms Life insurance can be included only if it is incidental to the retirement benefits. Where get state tax forms You set up a trust by a legal instrument (written document). Where get state tax forms You may need professional help to do this. Where get state tax forms You can set up a custodial account with a bank, savings and loan association, credit union, or other person who can act as the plan trustee. Where get state tax forms You do not need a trust or custodial account, although you can have one, to invest the plan's funds in annuity contracts or face-amount certificates. Where get state tax forms If anyone other than a trustee holds them, however, the contracts or certificates must state they are not transferable. Where get state tax forms Other plan requirements. Where get state tax forms   For information on other important plan requirements, see Qualification Rules , earlier in this chapter. Where get state tax forms Minimum Funding Requirement In general, if your plan is a money purchase pension plan or a defined benefit plan, you must actually pay enough into the plan to satisfy the minimum funding standard for each year. Where get state tax forms Determining the amount needed to satisfy the minimum funding standard for a defined benefit plan is complicated, and you should seek professional help in order to meet these contribution requirements. Where get state tax forms For information on this funding requirement, see section 412 and its regulations. Where get state tax forms Quarterly installments of required contributions. Where get state tax forms   If your plan is a defined benefit plan subject to the minimum funding requirements, you generally must make quarterly installment payments of the required contributions. Where get state tax forms If you do not pay the full installments timely, you may have to pay interest on any underpayment for the period of the underpayment. Where get state tax forms Due dates. Where get state tax forms   The due dates for the installments are 15 days after the end of each quarter. Where get state tax forms For a calendar-year plan, the installments are due April 15, July 15, October 15, and January 15 (of the following year). Where get state tax forms Installment percentage. Where get state tax forms   Each quarterly installment must be 25% of the required annual payment. Where get state tax forms Extended period for making contributions. Where get state tax forms   Additional contributions required to satisfy the minimum funding requirement for a plan year will be considered timely if made by 8½ months after the end of that year. Where get state tax forms Contributions A qualified plan is generally funded by your contributions. Where get state tax forms However, employees participating in the plan may be permitted to make contributions, and you may be permitted to make contributions on your own behalf. Where get state tax forms See Employee Contributions and Elective Deferrals later. Where get state tax forms Contributions deadline. Where get state tax forms   You can make deductible contributions for a tax year up to the due date of your return (plus extensions) for that year. Where get state tax forms Self-employed individual. Where get state tax forms   You can make contributions on behalf of yourself only if you have net earnings (compensation) from self-employment in the trade or business for which the plan was set up. Where get state tax forms Your net earnings must be from your personal services, not from your investments. Where get state tax forms If you have a net loss from self-employment, you cannot make contributions for yourself for the year, even if you can contribute for common-law employees based on their compensation. Where get state tax forms Employer Contributions There are certain limits on the contributions and other annual additions you can make each year for plan participants. Where get state tax forms There are also limits on the amount you can deduct. Where get state tax forms See Deduction Limits , later. Where get state tax forms Limits on Contributions and Benefits Your plan must provide that contributions or benefits cannot exceed certain limits. Where get state tax forms The limits differ depending on whether your plan is a defined contribution plan or a defined benefit plan. Where get state tax forms Defined benefit plan. Where get state tax forms   For 2013, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of the following amounts. Where get state tax forms 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Where get state tax forms $205,000 ($210,000 for 2014). Where get state tax forms Defined contribution plan. Where get state tax forms   For 2013, a defined contribution plan's annual contributions and other additions (excluding earnings) to the account of a participant cannot exceed the lesser of the following amounts. Where get state tax forms 100% of the participant's compensation. Where get state tax forms $51,000 ($52,000 for 2014). Where get state tax forms   Catch-up contributions (discussed later under Limit on Elective Deferrals) are not subject to the above limit. Where get state tax forms Employee Contributions Participants may be permitted to make nondeductible contributions to a plan in addition to your contributions. Where get state tax forms Even though these employee contributions are not deductible, the earnings on them are tax free until distributed in later years. Where get state tax forms Also, these contributions must satisfy the actual contribution percentage (ACP) test of section 401(m)(2), a nondiscrimination test that applies to employee contributions and matching contributions. Where get state tax forms See Regulations sections 1. Where get state tax forms 401(k)-2 and 1. Where get state tax forms 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). Where get state tax forms When Contributions Are Considered Made You generally apply your plan contributions to the year in which you make them. Where get state tax forms But you can apply them to the previous year if all the following requirements are met. Where get state tax forms You make them by the due date of your tax return for the previous year (plus extensions). Where get state tax forms The plan was established by the end of the previous year. Where get state tax forms The plan treats the contributions as though it had received them on the last day of the previous year. Where get state tax forms You do either of the following. Where get state tax forms You specify in writing to the plan administrator or trustee that the contributions apply to the previous year. Where get state tax forms You deduct the contributions on your tax return for the previous year. Where get state tax forms A partnership shows contributions for partners on Form 1065. Where get state tax forms Employer's promissory note. Where get state tax forms   Your promissory note made out to the plan is not a payment that qualifies for the deduction. Where get state tax forms Also, issuing this note is a prohibited transaction subject to tax. Where get state tax forms See Prohibited Transactions , later. Where get state tax forms Employer Deduction You can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. Where get state tax forms The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. Where get state tax forms Deduction Limits The deduction limit for your contributions to a qualified plan depends on the kind of plan you have. Where get state tax forms Defined contribution plans. Where get state tax forms   The deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) cannot be more than 25% of the compensation paid (or accrued) during the year to your eligible employees participating in the plan. Where get state tax forms If you are self-employed, you must reduce this limit in figuring the deduction for contributions you make for your own account. Where get state tax forms See Deduction Limit for Self-Employed Individuals , later. Where get state tax forms   When figuring the deduction limit, the following rules apply. Where get state tax forms Elective deferrals (discussed later) are not subject to the limit. Where get state tax forms Compensation includes elective deferrals. Where get state tax forms The maximum compensation that can be taken into account for each employee in 2013 is $255,000 ($260,000 for 2014). Where get state tax forms Defined benefit plans. Where get state tax forms   The deduction for contributions to a defined benefit plan is based on actuarial assumptions and computations. Where get state tax forms Consequently, an actuary must figure your deduction limit. Where get state tax forms    In figuring the deduction for contributions, you cannot take into account any contributions or benefits that are more than the limits discussed earlier under Limits on Contributions and Benefits, earlier. Where get state tax forms Table 4–1. Where get state tax forms Carryover of Excess Contributions Illustrated—Profit-Sharing Plan (000's omitted) Year Participants' compensation Participants' share of required contribution (10% of annual profit) Deductible  limit for current year (25% of compensation) Contribution Excess contribution carryover used1 Total  deduction including carryovers Excess contribution carryover available at end of year 2010 $1,000 $100 $250 $100 $ 0 $100 $ 0 2011 400 165 100 165 0 100 65 2012 500 100 125 100 25 125 40 2013 600 100 150 100 40 140 0  1There were no carryovers from years before 2010. Where get state tax forms Deduction Limit for Self-Employed Individuals If you make contributions for yourself, you need to make a special computation to figure your maximum deduction for these contributions. Where get state tax forms Compensation is your net earnings from self-employment, defined in chapter 1. Where get state tax forms This definition takes into account both the following items. Where get state tax forms The deduction for the deductible part of your self-employment tax. Where get state tax forms The deduction for contributions on your behalf to the plan. Where get state tax forms The deduction for your own contributions and your net earnings depend on each other. Where get state tax forms For this reason, you determine the deduction for your own contributions indirectly by reducing the contribution rate called for in your plan. Where get state tax forms To do this, use either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed in chapter 5. Where get state tax forms Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. Where get state tax forms Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. Where get state tax forms For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040); partnerships deduct them on Form 1065; and corporations deduct them on Form 1120, or Form 1120S. Where get state tax forms Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. Where get state tax forms (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you get from the partnership. Where get state tax forms ) Carryover of Excess Contributions If you contribute more to the plans than you can deduct for the year, you can carry over and deduct the difference in later years, combined with your contributions for those years. Where get state tax forms Your combined deduction in a later year is limited to 25% of the participating employees' compensation for that year. Where get state tax forms For purposes of this limit, a SEP is treated as a profit-sharing (defined contribution) plan. Where get state tax forms However, this percentage limit must be reduced to figure your maximum deduction for contributions you make for yourself. Where get state tax forms See Deduction Limit for Self-Employed Individuals, earlier. Where get state tax forms The amount you carry over and deduct may be subject to the excise tax discussed next. Where get state tax forms Table 4-1, earlier, illustrates the carryover of excess contributions to a profit-sharing plan. Where get state tax forms Excise Tax for Nondeductible (Excess) Contributions If you contribute more than your deduction limit to a retirement plan, you have made nondeductible contributions and you may be liable for an excise tax. Where get state tax forms In general, a 10% excise tax applies to nondeductible contributions made to qualified pension and profit-sharing plans and to SEPs. Where get state tax forms Special rule for self-employed individuals. Where get state tax forms   The 10% excise tax does not apply to any contribution made to meet the minimum funding requirements in a money purchase pension plan or a defined benefit plan. Where get state tax forms Even if that contribution is more than your earned income from the trade or business for which the plan is set up, the difference is not subject to this excise tax. Where get state tax forms See Minimum Funding Requirement , earlier. Where get state tax forms Reporting the tax. Where get state tax forms   You must report the tax on your nondeductible contributions on Form 5330. Where get state tax forms Form 5330 includes a computation of the tax. Where get state tax forms See the separate instructions for completing the form. Where get state tax forms Elective Deferrals (401(k) Plans) Your qualified plan can include a cash or deferred arrangement under which participants can choose to have you contribute part of their before-tax compensation to the plan rather than receive the compensation in cash. Where get state tax forms A plan with this type of arrangement is popularly known as a “401(k) plan. Where get state tax forms ” (As a self-employed individual participating in the plan, you can contribute part of your before-tax net earnings from the business. Where get state tax forms ) This contribution is called an “elective deferral” because participants choose (elect) to defer receipt of the money. Where get state tax forms In general, a qualified plan can include a cash or deferred arrangement only if the qualified plan is one of the following plans. Where get state tax forms A profit-sharing plan. Where get state tax forms A money purchase pension plan in existence on June 27, 1974, that included a salary reduction arrangement on that date. Where get state tax forms Partnership. Where get state tax forms   A partnership can have a 401(k) plan. Where get state tax forms Restriction on conditions of participation. Where get state tax forms   The plan cannot require, as a condition of participation, that an employee complete more than 1 year of service. Where get state tax forms Matching contributions. Where get state tax forms   If your plan permits, you can make matching contributions for an employee who makes an elective deferral to your 401(k) plan. Where get state tax forms For example, the plan might provide that you will contribute 50 cents for each dollar your participating employees choose to defer under your 401(k) plan. Where get state tax forms Matching contributions are generally subject to the ACP test discussed earlier under Employee Contributions. Where get state tax forms Nonelective contributions. Where get state tax forms   You can also make contributions (other than matching contributions) for your participating employees without giving them the choice to take cash instead. Where get state tax forms These are called nonelective contributions. Where get state tax forms Employee compensation limit. Where get state tax forms   No more than $255,000 of the employee's compensation can be taken into account when figuring contributions other than elective deferrals in 2013. Where get state tax forms This limit is $260,000 in 2014. Where get state tax forms SIMPLE 401(k) plan. Where get state tax forms   If you had 100 or fewer employees who earned $5,000 or more in compensation during the preceding year, you may be able to set up a SIMPLE 401(k) plan. Where get state tax forms A SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy plan requirements discussed earlier under Qualification Rules. Where get state tax forms For details about SIMPLE 401(k) plans, see SIMPLE 401(k) Plan in chapter 3. Where get state tax forms Distributions. Where get state tax forms   Certain rules apply to distributions from 401(k) plans. Where get state tax forms See Distributions From 401(k) Plans , later. Where get state tax forms Limit on Elective Deferrals There is a limit on the amount an employee can defer each year under these plans. Where get state tax forms This limit applies without regard to community property laws. Where get state tax forms Your plan must provide that your employees cannot defer more than the limit that applies for a particular year. Where get state tax forms For 2013 and 2014, the basic limit on elective deferrals is $17,500. Where get state tax forms This limit applies to all salary reduction contributions and elective deferrals. Where get state tax forms If, in conjunction with other plans, the deferral limit is exceeded, the difference is included in the employee's gross income. Where get state tax forms Catch-up contributions. Where get state tax forms   A 401(k) plan can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. Where get state tax forms The catch-up contribution limit for 2013 and 2014 is $5,500. Where get state tax forms Elective deferrals are not treated as catch-up contributions for 2013 until they exceed the $17,500 limit, the actual deferral percentage (ADP) test limit of section 401(k)(3), or the plan limit (if any). Where get state tax forms However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. Where get state tax forms The catch-up contribution limit. Where get state tax forms The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Where get state tax forms Treatment of contributions. Where get state tax forms   Your contributions to your own 401(k) plan are generally deductible by you for the year they are contributed to the plan. Where get state tax forms Matching or nonelective contributions made to the plan are also deductible by you in the year of contribution. Where get state tax forms Your employees' elective deferrals other than designated Roth contributions are tax free until distributed from the plan. Where get state tax forms Elective deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. Where get state tax forms Forfeiture. Where get state tax forms   Employees have a nonforfeitable right at all times to their accrued benefit attributable to elective deferrals. Where get state tax forms Reporting on Form W-2. Where get state tax forms   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. Where get state tax forms You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. Where get state tax forms You must also include them in box 12. Where get state tax forms Mark the “Retirement plan” checkbox in box 13. Where get state tax forms For more information, see the Form W-2 instructions. Where get state tax forms Automatic Enrollment Your 401(k) plan can have an automatic enrollment feature. Where get state tax forms Under this feature, you can automatically reduce an employee's pay by a fixed percentage and contribute that amount to the 401(k) plan on his or her behalf unless the employee affirmatively chooses not to have his or her pay reduced or chooses to have it reduced by a different percentage. Where get state tax forms These contributions are elective deferrals. Where get state tax forms An automatic enrollment feature will encourage employees' saving for retirement and will help your plan pass nondiscrimination testing (if applicable). Where get state tax forms For more information, see Publication 4674, Automatic Enrollment 401(k) Plans for Small Businesses. Where get state tax forms Eligible automatic contribution arrangement. Where get state tax forms   Under an eligible automatic contribution arrangement (EACA), a participant is treated as having elected to have the employer make contributions in an amount equal to a uniform percentage of compensation. Where get state tax forms This automatic election will remain in place until the participant specifically elects not to have such deferral percentage made (or elects a different percentage). Where get state tax forms There is no required deferral percentage. Where get state tax forms Withdrawals. Where get state tax forms   Under an EACA, you may allow participants to withdraw their automatic contributions to the plan if certain conditions are met. Where get state tax forms The participant must elect the withdrawal no later than 90 days after the date of the first elective contributions under the EACA. Where get state tax forms The participant must withdraw the entire amount of EACA default contributions, including any earnings thereon. Where get state tax forms   If the plan allows withdrawals under the EACA, the amount of the withdrawal other than the amount of any designated Roth contributions must be included in the employee's gross income for the tax year in which the distribution is made. Where get state tax forms The additional 10% tax on early distributions will not apply to the distribution. Where get state tax forms Notice requirement. Where get state tax forms   Under an EACA, employees must be given written notice of the terms of the EACA within a reasonable period of time before each plan year. Where get state tax forms The notice must be written in a manner calculated to be understood by the average employee and be sufficiently accurate and comprehensive in order to apprise the employee of his or her rights and obligations under the EACA. Where get state tax forms The notice must include an explanation of the employee's right to elect not to have elective contributions made on his or her behalf, or to elect a different percentage, and the employee must be given a reasonable period of time after receipt of the notice before the first elective contribution is made. Where get state tax forms The notice also must explain how contributions will be invested in the absence of an investment election by the employee. Where get state tax forms Qualified automatic contribution arrangement. Where get state tax forms    A qualified automatic contribution arrangement (QACA) is a type of safe harbor plan. Where get state tax forms It contains an automatic enrollment feature, and mandatory employer contributions are required. Where get state tax forms If your plan includes a QACA, it will not be subject to the ADP test (discussed later) nor the top-heavy requirements (discussed earlier). Where get state tax forms Additionally, your plan will not be subject to the actual contribution percentage (ACP) test if certain additional requirements are met. Where get state tax forms Under a QACA, each employee who is eligible to participate in the plan will be treated as having elected to make elective deferral contributions equal to a certain default percentage of compensation. Where get state tax forms In order to not have default elective deferrals made, an employee must make an affirmative election specifying a deferral percentage (including zero, if desired). Where get state tax forms If an employee does not make an affirmative election, the default deferral percentage must meet the following conditions. Where get state tax forms It must be applied uniformly. Where get state tax forms It must not exceed 10%. Where get state tax forms It must be at least 3% in the first plan year it applies to an employee and through the end of the following year. Where get state tax forms It must increase to at least 4% in the following plan year. Where get state tax forms It must increase to at least 5% in the following plan year. Where get state tax forms It must increase to at least 6% in subsequent plan years. Where get state tax forms Matching or nonelective contributions. Where get state tax forms   Under the terms of the QACA, you must make either matching or nonelective contributions according to the following terms. Where get state tax forms Matching contributions. Where get state tax forms You must make matching contributions on behalf of each non-highly compensated employee in the following amounts. Where get state tax forms An amount equal to 100% of elective deferrals, up to 1% of compensation. Where get state tax forms An amount equal to 50% of elective deferrals, from 1% up to 6% of compensation. Where get state tax forms Other formulas may be used as long as they are at least as favorable to non-highly compensated employees. Where get state tax forms The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. Where get state tax forms Nonelective contributions. Where get state tax forms You must make nonelective contributions on behalf of every non-highly compensated employee eligible to participate in the plan, regardless of whether they elected to participate, in an amount equal to at least 3% of their compensation. Where get state tax forms Vesting requirements. Where get state tax forms   All accrued benefits attributed to matching or nonelective contributions under the QACA must be 100% vested for all employees who complete 2 years of service. Where get state tax forms These contributions are subject to special withdrawal restrictions, discussed later. Where get state tax forms Notice requirements. Where get state tax forms   Each employee eligible to participate in the QACA must receive written notice of their rights and obligations under the QACA, within a reasonable period before each plan year. Where get state tax forms The notice must be written in a manner calculated to be understood by the average employee, and it must be accurate and comprehensive. Where get state tax forms The notice must explain their right to elect not to have elective contributions made on their behalf, or to have contributions made at a different percentage than the default percentage. Where get state tax forms Additionally, the notice must explain how contributions will be invested in the absence of any investment election by the employee. Where get state tax forms The employee must have a reasonable period of time after receiving the notice to make such contribution and investment elections prior to the first contributions under the QACA. Where get state tax forms Treatment of Excess Deferrals If the total of an employee's deferrals is more than the limit for 2013, the employee can have the difference (called an excess deferral) paid out of any of the plans that permit these distributions. Where get state tax forms He or she must notify the plan by April 15, 2014 (or an earlier date specified in the plan), of the amount to be paid from each plan. Where get state tax forms The plan must then pay the employee that amount, plus earnings on the amount through the end of 2013, by April 15, 2014. Where get state tax forms Excess withdrawn by April 15. Where get state tax forms   If the employee takes out the excess deferral by April 15, 2014, it is not reported again by including it in the employee's gross income for 2014. Where get state tax forms However, any income earned in 2013 on the excess deferral taken out is taxable in the tax year in which it is taken out. Where get state tax forms The distribution is not subject to the additional 10% tax on early distributions. Where get state tax forms   If the employee takes out part of the excess deferral and the income on it, the distribution is treated as made proportionately from the excess deferral and the income. Where get state tax forms   Even if the employee takes out the excess deferral by April 15, the amount will be considered for purposes of nondiscrimination testing requirements of the plan, unless the distributed amount is for a non-highly compensated employee who participates in only one employer's 401(k) plan or plans. Where get state tax forms Excess not withdrawn by April 15. Where get state tax forms   If the employee does not take out the excess deferral by April 15, 2014, the excess, though taxable in 2013, is not included in the employee's cost basis in figuring the taxable amount of any eventual distributions under the plan. Where get state tax forms In effect, an excess deferral left in the plan is taxed twice, once when contributed and again when distributed. Where get state tax forms Also, if the employee's excess deferral is allowed to stay in the plan and the employee participates in no other employer's plan, the plan can be disqualified. Where get state tax forms Reporting corrective distributions on Form 1099-R. Where get state tax forms   Report corrective distributions of excess deferrals (including any earnings) on Form 1099-R. Where get state tax forms For specific information about reporting corrective distributions, see the Instructions for Forms 1099-R and 5498. Where get state tax forms Tax on excess contributions of highly compensated employees. Where get state tax forms   The law provides tests to detect discrimination in a plan. Where get state tax forms If tests, such as the actual deferral percentage test (ADP test) (see section 401(k)(3)) and the actual contribution percentage test (ACP test) (see section 401(m)(2)), show that contributions for highly compensated employees are more than the test limits for these contributions, the employer may have to pay a 10% excise tax. Where get state tax forms Report the tax on Form 5330. Where get state tax forms The ADP test does not apply to a safe harbor 401(k) plan (discussed next) nor to a QACA. Where get state tax forms Also, the ACP test does not apply to these plans if certain additional requirements are met. Where get state tax forms   The tax for the year is 10% of the excess contributions for the plan year ending in your tax year. Where get state tax forms Excess contributions are elective deferrals, employee contributions, or employer matching or nonelective contributions that are more than the amount permitted under the ADP test or the ACP test. Where get state tax forms   See Regulations sections 1. Where get state tax forms 401(k)-2 and 1. Where get state tax forms 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). Where get state tax forms    If the plan fails the ADP or ACP testing, and the failure is not corrected by the end of the next plan year, the plan can be disqualified. Where get state tax forms Safe harbor 401(k) plan. Where get state tax forms If you meet the requirements for a safe harbor 401(k) plan, you do not have to satisfy the ADP test, nor the ACP test, if certain additional requirements are met. Where get state tax forms For your plan to be a safe harbor plan, you must meet the following conditions. Where get state tax forms Matching or nonelective contributions. Where get state tax forms You must make matching or nonelective contributions according to one of the following formulas. Where get state tax forms Matching contributions. Where get state tax forms You must make matching contributions according to the following rules. Where get state tax forms You must contribute an amount equal to 100% of each non-highly compensated employee's elective deferrals, up to 3% of compensation. Where get state tax forms You must contribute an amount equal to 50% of each non-highly compensated employee's elective deferrals, from 3% up to 5% of compensation. Where get state tax forms The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. Where get state tax forms Nonelective contributions. Where get state tax forms You must make nonelective contributions, without regard to whether the employee made elective deferrals, on behalf of all non-highly compensated employees eligible to participate in the plan, equal to at least 3% of the employee's compensation. Where get state tax forms These mandatory matching and nonelective contributions must be immediately 100% vested and are subject to special withdrawal restrictions. Where get state tax forms Notice requirement. Where get state tax forms You must give eligible employees written notice of their rights and obligations with regard to contributions under the plan, within a reasonable period before the plan year. Where get state tax forms The other requirements for a 401(k) plan, including withdrawal and vesting rules, must also be met for your plan to qualify as a safe harbor 401(k) plan. Where get state tax forms Qualified Roth Contribution Program Under this program an eligible employee can designate all or a portion of his or her elective deferrals as after-tax Roth contributions. Where get state tax forms Elective deferrals designated as Roth contributions must be maintained in a separate Roth account. Where get state tax forms However, unlike other elective deferrals, designated Roth contributions are not excluded from employees' gross income, but qualified distributions from a Roth account are excluded from employees' gross income. Where get state tax forms Elective Deferrals Under a qualified Roth contribution program, the amount of elective deferrals that an employee may designate as a Roth contribution is limited to the maximum amount of elective deferrals excludable from gross income for the year (for 2013 and 2014, $17,500 if under age 50 and $23,000 if age 50 or over) less the total amount of the employee's elective deferrals not designated as Roth contributions. Where get state tax forms Designated Roth deferrals are treated the same as pre-tax elective deferrals for most purposes, including: The annual individual elective deferral limit (total of all designated Roth contributions and traditional, pre-tax elective deferrals) of $17,500 for 2013 and 2014, with an additional $5,500 if age 50 or over for 2013 and 2014, Determining the maximum employee and employer annual contributions of the lesser of 100% of compensation or $51,000 for 2013 ($52,000 for 2014), Nondiscrimination testing, Required distributions, and Elective deferrals not taken into account for purposes of deduction limits. Where get state tax forms Qualified Distributions A qualified distribution is a distribution that is made after the employee's nonexclusion period and: On or after the employee attains age   59½, On account of the employee's being disabled, or On or after the employee's death. Where get state tax forms An employee's nonexclusion period for a plan is the 5-tax-year period beginning with the earlier of the following tax years. Where get state tax forms The first tax year in which the employee made a contribution to his or her Roth account in the plan, or If a rollover contribution was made to the employee's designated Roth account from a designated Roth account previously established for the employee under another plan, then the first tax year the employee made a designated Roth contribution to the previously established account. Where get state tax forms Rollover. Where get state tax forms   Beginning September 28, 2010, a rollover from another account can be made to a designated Roth account in the same plan. Where get state tax forms For additional information on these in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Where get state tax forms R. Where get state tax forms B. Where get state tax forms 872, available at www. Where get state tax forms irs. Where get state tax forms gov/irb/2010-51_IRB/ar11. Where get state tax forms html, and Notice 2013-74. Where get state tax forms A distribution from a designated Roth account can only be rolled over to another designated Roth account or a Roth IRA. Where get state tax forms Rollover amounts do not apply toward the annual deferral limit. Where get state tax forms Reporting Requirements You must report a contribution to a Roth account on Form W-2 and a distribution from a Roth account on Form 1099-R. Where get state tax forms See the Form W-2 and 1099-R instructions for detailed information. Where get state tax forms Distributions Amounts paid to plan participants from a qualified plan are called distributions. Where get state tax forms Distributions may be nonperiodic, such as lump-sum distributions, or periodic, such as annuity payments. Where get state tax forms Also, certain loans may be treated as distributions. Where get state tax forms See Loans Treated as Distributions in Publication 575. Where get state tax forms Required Distributions A qualified plan must provide that each participant will either: Receive his or her entire interest (benefits) in the plan by the required beginning date (defined later), or Begin receiving regular periodic distributions by the required beginning date in annual amounts calculated to distribute the participant's entire interest (benefits) over his or her life expectancy or over the joint life expectancy of the participant and the designated beneficiary (or over a shorter period). Where get state tax forms These distribution rules apply individually to each qualified plan. Where get state tax forms You cannot satisfy the requirement for one plan by taking a distribution from another. Where get state tax forms The plan must provide that these rules override any inconsistent distribution options previously offered. Where get state tax forms Minimum distribution. Where get state tax forms   If the account balance of a qualified plan participant is to be distributed (other than as an annuity), the plan administrator must figure the minimum amount required to be distributed each distribution calendar year. Where get state tax forms This minimum is figured by dividing the account balance by the applicable life expectancy. Where get state tax forms The plan administrator can use the life expectancy tables in Appendix C of Publication 590 for this purpose. Where get state tax forms For more information on figuring the minimum distribution, see Tax on Excess Accumulation in Publication 575. Where get state tax forms Required beginning date. Where get state tax forms   Generally, each participant must receive his or her entire benefits in the plan or begin to receive periodic distributions of benefits from the plan by the required beginning date. Where get state tax forms   A participant must begin to receive distributions from his or her qualified retirement plan by April 1 of the first year after the later of the following years. Where get state tax forms Calendar year in which he or she reaches age 70½. Where get state tax forms Calendar year in which he or she retires from employment with the employer maintaining the plan. Where get state tax forms However, the plan may require the participant to begin receiving distributions by April 1 of the year after the participant reaches age 70½ even if the participant has not retired. Where get state tax forms   If the participant is a 5% owner of the employer maintaining the plan, the participant must begin receiving distributions by April 1 of the first year after the calendar year in which the participant reached age 70½. Where get state tax forms For more information, see Tax on Excess Accumulation in Publication 575. Where get state tax forms Distributions after the starting year. Where get state tax forms   The distribution required to be made by April 1 is treated as a distribution for the starting year. Where get state tax forms (The starting year is the year in which the participant meets (1) or (2) above, whichever applies. Where get state tax forms ) After the starting year, the participant must receive the required distribution for each year by December 31 of that year. Where get state tax forms If no distribution is made in the starting year, required distributions for 2 years must be made in the next year (one by April 1 and one by December 31). Where get state tax forms Distributions after participant's death. Where get state tax forms   See Publication 575 for the special rules covering distributions made after the death of a participant. Where get state tax forms Distributions From 401(k) Plans Generally, distributions cannot be made until one of the following occurs. Where get state tax forms The employee retires, dies, becomes disabled, or otherwise severs employment. Where get state tax forms The plan ends and no other defined contribution plan is established or continued. Where get state tax forms In the case of a 401(k) plan that is part of a profit-sharing plan, the employee reaches age 59½ or suffers financial hardship. Where get state tax forms For the rules on hardship distributions, including the limits on them, see Regulations section 1. Where get state tax forms 401(k)-1(d). Where get state tax forms The employee becomes eligible for a qualified reservist distribution (defined next). Where get state tax forms Certain distributions listed above may be subject to the tax on early distributions discussed later. Where get state tax forms Qualified reservist distributions. Where get state tax forms   A qualified reservist distribution is a distribution from an IRA or an elective deferral account made after September 11, 2001, to a military reservist or a member of the National Guard who has been called to active duty for at least 180 days or for an indefinite period. Where get state tax forms All or part of a qualified reservist distribution can be recontributed to an IRA. Where get state tax forms The additional 10% tax on early distributions does not apply to a qualified reservist distribution. Where get state tax forms Tax Treatment of Distributions Distributions from a qualified plan minus a prorated part of any cost basis are subject to income tax in the year they are distributed. Where get state tax forms Since most recipients have no cost basis, a distribution is generally fully taxable. Where get state tax forms An exception is a distribution that is properly rolled over as discussed under Rollover, next. Where get state tax forms The tax treatment of distributions depends on whether they are made periodically over several years or life (periodic distributions) or are nonperiodic distributions. Where get state tax forms See Taxation of Periodic Payments and Taxation of Nonperiodic Payments in Publication 575 for a detailed description of how distributions are taxed, including the 10-year tax option or capital gain treatment of a lump-sum distribution. Where get state tax forms Note. Where get state tax forms A recipient of a distribution from a designated Roth account will have a cost basis since designated Roth contributions are made on an after-tax basis. Where get state tax forms Also, a distribution from a designated Roth account is entirely tax-free if certain conditions are met. Where get state tax forms See Qualified distributions under Qualified Roth Contribution Program, earlier. Where get state tax forms Rollover. Where get state tax forms   The recipient of an eligible rollover distribution from a qualified plan can defer the tax on it by rolling it over into a traditional IRA or another eligible retirement plan. Where get state tax forms However, it may be subject to withholding as discussed under Withholding requirement, later. Where get state tax forms A rollover can also be made to a Roth IRA, in which case, any previously untaxed amounts are includible in gross income unless the rollover is from a designated Roth account. Where get state tax forms Eligible rollover distribution. Where get state tax forms   This is a distribution of all or any part of an employee's balance in a qualified retirement plan that is not any of the following. Where get state tax forms A required minimum distribution. Where get state tax forms See Required Distributions , earlier. Where get state tax forms Any of a series of substantially equal payments made at least once a year over any of the following periods. Where get state tax forms The employee's life or life expectancy. Where get state tax forms The joint lives or life expectancies of the employee and beneficiary. Where get state tax forms A period of 10 years or longer. Where get state tax forms A hardship distribution. Where get state tax forms The portion of a distribution that represents the return of an employee's nondeductible contributions to the plan. Where get state tax forms See Employee Contributions , earlier, and Rollover of nontaxable amounts, next. Where get state tax forms Loans treated as distributions. Where get state tax forms Dividends on employer securities. Where get state tax forms The cost of any life insurance coverage provided under a qualified retirement plan. Where get state tax forms Similar items designated by the IRS in published guidance. Where get state tax forms See, for example, the Instructions for Forms 1099-R and 5498. Where get state tax forms Rollover of nontaxable amounts. Where get state tax forms   You may be able to roll over the nontaxable part of a distribution to another qualified retirement plan or a section 403(b) plan, or to an IRA. Where get state tax forms If the rollover is to a qualified retirement plan or a section 403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover, the transfer must be made through a direct (trustee-to-trustee) rollover. Where get state tax forms If the rollover is to an IRA, the transfer can be made by any rollover method. Where get state tax forms Note. Where get state tax forms A distribution from a designated Roth account can be rolled over to another designated Roth account or to a Roth IRA. Where get state tax forms If the rollover is to a Roth IRA, it can be rolled over by any rollover method, but if the rollover is to another designated Roth account, it must be rolled over directly (trustee-to-trustee). Where get state tax forms More information. Where get state tax forms   For more information about rollovers, see Rollovers in Pubs. Where get state tax forms 575 and 590. Where get state tax forms Withholding requirement. Where get state tax forms   If, during a year, a qualified plan pays to a participant one or more eligible rollover distributions (defined earlier) that are reasonably expected to total $200 or more, the payor must withhold 20% of the taxable portion of each distribution for federal income tax. Where get state tax forms Exceptions. Where get state tax forms   If, instead of having the distribution paid to him or her, the participant chooses to have the plan pay it directly to an IRA or another eligible retirement plan (a direct rollover), no withholding is required. Where get state tax forms   If the distribution is not an eligible rollover distribution, defined earlier, the 20% withholding requirement does not apply. Where get state tax forms Other withholding rules apply to distributions that are not eligible rollover distributions, such as long-term periodic distributions and required distributions (periodic or nonperiodic). Where get state tax forms However, the participant can choose not to have tax withheld from these distributions. Where get state tax forms If the participant does not make this choice, the following withholding rules apply. Where get state tax forms For periodic distributions, withholding is based on their treatment as wages. Where get state tax forms For nonperiodic distributions, 10% of the taxable part is withheld. Where get state tax forms Estimated tax payments. Where get state tax forms   If no income tax is withheld or not enough tax is withheld, the recipient of a distribution may have to make estimated tax payments. Where get state tax forms For more information, see Withholding Tax and Estimated Tax in Publication 575. Where get state tax forms Section 402(f) Notice. Where get state tax forms   If a distribution is an eligible rollover distribution, as defined earlier, you must provide a written notice to the recipient that explains the following rules regarding such distributions. Where get state tax forms That the distribution may be directly transferred to an eligible retirement plan and information about which distributions are eligible for this direct transfer. Where get state tax forms That tax will be withheld from the distribution if it is not directly transferred to an eligible retirement plan. Where get state tax forms That the distribution will not be subject to tax if transferred to an eligible retirement plan within 60 days after the date the recipient receives the distribution. Where get state tax forms Certain other rules that may be applicable. Where get state tax forms   Notice 2009-68, 2009-39 I. Where get state tax forms R. Where get state tax forms B. Where get state tax forms 423, available at www. Where get state tax forms irs. Where get state tax forms gov/irb/2009-39_IRB/ar14. Where get state tax forms html, contains two updated safe harbor section 402(f) notices that plan administrators may provide recipients of eligible rollover distributions. Where get state tax forms If the plan allows in-plan Roth rollovers, the 402(f) notice must be amended to reflect this. Where get state tax forms Notice 2010-84 contains guidance on how to modify a 402(f) notice for in-plan Roth rollovers. Where get state tax forms Timing of notice. Where get state tax forms   The notice generally must be provided no less than 30 days and no more than 180 days before the date of a distribution. Where get state tax forms Method of notice. Where get state tax forms   The written notice must be provided individually to each distributee of an eligible rollover distribution. Where get state tax forms Posting of the notice is not sufficient. Where get state tax forms However, the written requirement may be satisfied through the use of electronic media if certain additional conditions are met. Where get state tax forms See Regulations section 1. Where get state tax forms 401(a)-21. Where get state tax forms Tax on failure to give notice. Where get state tax forms   Failure to give a 402(f) notice will result in a tax of $100 for each failure, with a total not exceeding $50,000 per calendar year. Where get state tax forms The tax will not be imposed if it is shown that such failure is due to reasonable cause and not to willful neglect. Where get state tax forms Tax on Early Distributions If a distribution is made to an employee under the plan before he or she reaches age 59½, the employee may have to pay a 10% additional tax on the distribution. Where get state tax forms This tax applies to the amount received that the employee must include in income. Where get state tax forms Exceptions. Where get state tax forms   The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances. Where get state tax forms Made to a beneficiary (or to the estate of the employee) on or after the death of the employee. Where get state tax forms Made due to the employee having a qualifying disability. Where get state tax forms Made as part of a series of substantially equal periodic payments beginning after separation from service and made at least annually for the life or life expectancy of the employee or the joint lives or life expectancies of the employee and his or her designated beneficiary. Where get state tax forms (The payments under this exception, except in the case of death or disability, must continue for at least 5 years or until the employee reaches age 59½, whichever is the longer period. Where get state tax forms ) Made to an employee after separation from service if the separation occurred during o