Help! 4972

[DTS]

An elderly client receives a foreign pension from Germany. This year, she doubled up on the amount and is taking a HUGE hit, state and Fed and what I mean, huge.

All that's received is a confirmation of wire transfer, no 1099R.

Question: Can I use 4972 for this foreign pension with no 1099? I hope I can. If not, does anyone know of a work-around for this?

ANY and ALL suggestions are needed and wanted.

Dennis

[Roland Slugg]

Dear DTS

No. The 10-year averaging only applies to a lump sum distribution, not an annual distribution that just happens to be more than it used to be.

Even for lump-sum distributions 10-year averaging only applies to "pre-74" plan participation, and the participant had to have reached age 50 before the year 1985 ... i.e. must have been born in 1935 or before.

[DTS]

Roland

Yes, I was not thinking at all. In a panic, I just started to go through items that might help the situation, that came to mind and I posted.

Thank you for your reply!

Dennis

[S T]

Not 4972

Dennis,

Since the monies are coming in from Germany, have you thought about whether or not the payments are "Holocaust" restitution monies?

You might have to gather more detailed information from the client.

Here is a link http://www.irs.gov/pub/irs-news/ir-01-75.pdf

Sandy

[DTS]

Money

Sandy,

I did not know of this until I read your link. I did a google search and found something on it, as well.

I need to call this gal's son in the morning and will find out. I called it a pension because they called it a pension. It may not be a pension at all.

Thank you so much for the link! There may be a happy ending to this mess after all.

Thanks again, Sandy!

Dennis

[Lion]

Treaty

Haven't had anyone receiving foreign money in retirement since a few years ago, one man who worked in Canada and starting receiving that money. But, could we have a treaty with Germany designating whether and how certain types of income are taxed or not in the US? Worth looking up when you find out what her income stream is called,