Younger client that worked for a company that went out of business in our town 12 years ago. The company had a pension plan for the employees based on their years of service. My client age 40 now, decided to just take out a lump sum distribution in the amount of 8400 dollars coded 1 on her 1099R. She could have waited until age 55 or so and then been entitled to a small monthly pension amount for the rest of her life, but decided to take the one time distribution now.
The employees did not contribute to this plan. This was not a 401 plan or any kind of pretax plan. Just a typical company sponsored retirement plan. Why would their be a penalty? Thinking I should have done a 5329 abating the penalty. Guess I'll read thru the instructions for 5329 once again to see if there is an exception.
The employees did not contribute to this plan. This was not a 401 plan or any kind of pretax plan. Just a typical company sponsored retirement plan. Why would their be a penalty? Thinking I should have done a 5329 abating the penalty. Guess I'll read thru the instructions for 5329 once again to see if there is an exception.
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