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Yearly Archives: 2010
IRS Presents: Top Ten Facts about Taking Early Distributions from Retirement Plans
Some taxpayers may have needed to take an early distribution from their retirement plan last year. The IRS wants individuals who took an early distribution to know that there can be a tax impact to tapping your retirement fund. Here are ten facts about early distributions.
- Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
- Early distributions are usually subject to an additional 10 percent tax.
- Early distributions must also be reported to the IRS.
- Distributions you rollover to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You must complete the rollover within 60 days after the day you received the distribution.
- The amount you roll over is generally taxed when the new plan makes a distribution to you or your beneficiary.
- If you made nondeductible contributions to an IRA and later take early distributions from your IRA, the portion of the distribution attributable to those nondeductible contributions is not taxed.
- If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions is not taxed.
- If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
- There are several exceptions to the additional 10 percent early distribution tax, such as when the distributions are used for the purchase of a first home, for certain medical or educational expenses, or if you are disabled.
- For more information about early distributions from retirement plans, the additional 10 percent tax and all the exceptions see IRS Publication 575, Pension and Annuity Income and Publication 590, Individual Retirement Arrangements (IRAs). Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
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March FTB News: Includes Info on How to Efile Your California Return With a New Home Credit
Updated Taxpayers´ Bill of Rights
[The FTB] recently revised [their] publication 4058C, California Taxpayers’ Bill of Rights. / more+
Does your client know where to send the “state copy” of an information return?
You may be asked by your client where they need to send the “state copy” of an information return. If they filed paper returns with IRS, they do not need to send a paper copy to FTB. / more+
Available now: Free California source income withholding webinars
[The FTB] will host free California source income withholding webinars in March 2010. / more+
The best way to file a protest
Has your client recently received a Notice of Proposed Assessment for added tax resulting from [an FTB] audit examination? Does your client plan to file a protest? / more+
New home credit can be e-filed
Did you know you can e-file California returns that contain the New Home Credit? / more+
Do all your tax stuff online!
With instant access to taxpayer information, 24 hours a day, doing your tax stuff online will save you, and your clients, time and hassle. / more+
Need W-2 information?
Some clients may have difficulty getting their W-2 information. / more+
Small Business
Small Business Virtual Webinar
[The FTB] partnered with Board of Equalization (BOE) to present cost effective and convenient educational products, including a complete online seminar package that enables taxpayers to get answers to the most commonly asked questions. / more+
Ask the Advocate
FTB responds to tax community´s proposals
The annual Taxpayers´ Bill of Rights Hearing was held December 3, 2009. [The FTB] received several proposals and recommendations from the tax community. / more+
Inside FTB
Take a look at the changes happening at FTB. / more+
Criminal Corner
[The] monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time. / more+
Big Business
Interested Parties Meeting on Specialized Tax Service Fees
[The FTB] scheduled an interested parties meeting for March 16, 2010, at 1 p.m. to discuss amendment of California Code of Regulations, title 18, section 19591 (Specialized Tax Service Fees), to establish the amount of the fee for the issuance of a limited partnership revival confirmation letter, as required by Revenue and Taxation Code section 19591, subdivision (b)(3), for periods on or after January 1, 2011. / more+
Stacie's Tax Stuff 