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Need Help Filing A 1040x

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Need Help Filing A 1040x

Need help filing a 1040x Publication 938 - Main Content Table of Contents Who May Request Information How To Request Information Who May Request Information The persons listed below, or their agent or representative, should follow the procedures in this publication to request tax information from the representative of the REMIC or the issuer of the CDO. Need help filing a 1040x Any broker who holds a REMIC regular interest or CDO for itself or as a nominee for an actual holder. Need help filing a 1040x A middleman who holds a REMIC regular interest or CDO as a nominee for an actual holder and who is required to file an information return with respect to the regular interest or CDO. Need help filing a 1040x The following persons, if they hold their REMIC regular interest or CDO directly and not through a nominee. Need help filing a 1040x A corporation. Need help filing a 1040x A fiscal year taxpayer. Need help filing a 1040x A dealer in securities or commodities required to register as such under the laws of the United States or a state. Need help filing a 1040x A real estate investment trust (as defined in section 856). Need help filing a 1040x An entity registered at all times during the tax year under the Investment Company Act of 1940. Need help filing a 1040x A common trust fund (as defined in section 584(a)). Need help filing a 1040x A financial institution such as a mutual savings bank, savings and loan association, building and loan association, cooperative bank, homestead association, credit union, industrial loan association or bank, or other similar organization. Need help filing a 1040x Any trust that is exempt from tax under section 664(c) (a charitable remainder annuity trust or a charitable remainder unitrust). Need help filing a 1040x A REMIC. Need help filing a 1040x Note. Need help filing a 1040x A person listed in (3) above who holds an interest through a nominee (instead of directly from the REMIC or the issuer of the CDO) should request the information from the nominee instead of from the REMIC or the issuer of the CDO. Need help filing a 1040x The request should be made of the nominee in the same manner as specified below for requesting information from the representative. Need help filing a 1040x How To Request Information Use the directory to find the representative of the REMIC or issuer of the CDO. Need help filing a 1040x You can request information from the representative or issuer by telephone or mail. Need help filing a 1040x If only an address is listed in the directory, you must request the information in writing. Need help filing a 1040x Your request must specify the calendar quarters and the classes of REMIC regular interests or CDOs for which you need the information. Need help filing a 1040x The representative or issuer must provide the information to you by the later of: The 30th day after the close of the calendar quarter for which you request the information, or The 14th day after the receipt of your request. Need help filing a 1040x The representative or issuer can provide the information to you by telephone, by written statement sent by first class mail, by printing the information in a publication that is generally read by and available to persons who may request the information (for example, a webpage), or by any other method agreed to by both parties. Need help filing a 1040x If the information is published, the representative or issuer must notify you by telephone or in writing of the publication in which the information will appear, the date of its appearance, and, if possible, the page number. Need help filing a 1040x Prev  Up  Next   Home   More Online Publications
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2012 ITIN Review Frequently Asked Questions

What are the interim changes to the ITIN application requirements?
The IRS is revising its procedures for issuing new Individual Taxpayer Identification Numbers (ITINs) as part of a comprehensive review of the ITIN processing procedures. Forms W-7, Application for IRS Individual Taxpayer Identification Number, submitted during the interim period beginning June 22, 2012 through the end of the year must include original documentation such as passports and birth certificates, or copies of these documents certified by the issuing agency. During this interim period, notarized copies of documentation will not be accepted.

Are there any applicants who are exempt from these new requirements?
Some categories of applicants are not impacted by these interim changes, including spouses and dependents of U.S. military personnel who need ITINs. People who should follow the current procedures outlined in the Form W-7 instructions include:

  • Military spouses and dependents without an SSN who need an ITIN (Military spouses use box "e" on Form W-7 and military dependents use box "d"). Exceptions to the new interim document standards will be made for military family members satisfying the documentation requirements by providing a copy of the spouse or parent's U.S. military identification, or applying from an overseas APO/FPO address.
  • Nonresident aliens applying for ITINs for the purpose of claiming tax treaty benefits (use boxes "a" and "h" on Form W-7). Non-resident alien applicants generally need ITINs for reasons besides filing a U.S. tax return. This is necessary for nonresident aliens who may be subject to third-party withholding for various income, such as certain gambling winnings or pension income, or need an ITIN for information reporting purposes. While existing documentation standards will be maintained only for these applicants, scrutiny of the documents will be heightened. ITIN applications of this category that are accompanied by a U.S. tax return will be subject to the new interim document standards.

What is the difference between a "certified" and a "notarized" document?
A certified document is one that the original issuing agency provides and certifies as an exact copy of the original document and contains an official stamped seal from the Agency. These documents will be accepted. A notarized document is one that the taxpayer provides to a public notary who bears witness to the signing of the official document and affixes a seal assuring that the document is legitimate. These documents will not be accepted for ITIN applications. Note there are some applicants who are exempt from this change. This exemption is described in a previous question.

Why is IRS changing the ITIN program procedures?
The IRS is instituting these interim changes while conducting a review of the program designed to strengthen and protect the integrity of the ITIN process.

Is this a temporary change to the program? If so, how long will it be in effect?
These are interim changes that have been put in place during a comprehensive review of ITIN processing procedures. Any permanent changes will be issued before the start of the 2013 filing season when most requests for ITINs come in.

When will the interim changes be effective?
These changes will be effective for all new applications submitted on or after June 22, 2012 and will remain in effect until the final rules are issued later this year.

If a taxpayer had a pending application on file with IRS before June 22, 2012, will processing continue with the notarized copies already submitted?
Yes, the IRS is analyzing the existing inventory of ITIN applications. Some taxpayers who have already filed applications may be required to furnish additional documentation directly to the IRS. However, no additional action is required for people who have already filed ITIN requests unless they are contacted by the IRS.

If a taxpayer had a pending application on file with IRS before June 22, 2012, that included original or certified documents, will the taxpayer need to take any additional action?
No. IRS will continue to process pending applications that include original or certified documentation.

Will Publications 1915, 4520 or 4327, or tax forms and instructions change to reflect this new requirement? If so, when will they change and when will they be available to the public?
Since these are interim changes, publications, forms and instructions will not change. Once IRS has determined the appropriate changes, these and other appropriate instructions will be updated to reflect the new policy.

Will taxpayers be able to submit Form W-7 applications (with original documents) at IRS Taxpayer Assistance Centers?
During this interim period, IRS Taxpayer Assistance Centers will accept original documentation or copies of these documents certified by the issuing agency and forward the documents to the Austin Submission Processing Center. 

Which documents are acceptable?
See the instructions for Form W-7. These instructions list 13 acceptable documents.

Will the IRS return my original documents to me? How long will it take to get them back?
The IRS currently receives original documents with some applications and we have a process in place to ensure that documents are returned to applicants.  The original and certified documents will be returned to applicants using the mailing address on the application via postage paid standard U.S. mail within 60 days of receipt and processing of the Form W-7.

Whom should I contact if I do not receive the documents within the allotted period?
If you do not receive your original documents within 65 days of mailing to the IRS, allowing 5 days for postal mail receipt, you may call 1-800-908-9982 (U.S. only) or for international, call 1-267-941-1000 (this is not a toll free number).

Are there any alternative options for me if I cannot get the original documents I need?
Unless you are one of the exempt applicants described above, this change requires the submission of original or certified copies of documentation from the issuing agency in order to obtain an ITIN. You may be able to request a certified copy of your passport or similar international identification (e.g., Matricula Card) at your local consulate's office.

If I cannot get the documents I need to apply for an ITIN, can I apply for a Social Security number instead?
If you qualify for a social security number, you should not be applying for an ITIN.

Can my consulate or embassy certify my documents?
You may be able to request a certified copy of documents at an embassy or consulate.  However, services may vary between countries, so we recommend that you contact the appropriate consulate or embassy for specific information.

My consulate or embassy wants to know why I need a certified copy of my passport.  What should I provided them as proof of requirement?
We recommend that you refer the consulate or embassy to the information on www.IRS.gov or that you download and copy that information and provide it to them.

Will the IRS accept an apostille document?
During this interim period, the IRS is only accepting original documentation or copies of documents certified by the issuing country or agency.  An apostille does not meet these requirements since it is similar to the U.S. Notary, which we are currently not accepting.  You may be able to request a certified copy of identification documents at the applicant’s embassy or consulate. However, services may vary between countries so we recommend that you contact the appropriate consulate or embassy for that information.  

As a reminder, some categories of applicants are exempt from the requirement to provide original or certified copies including U.S. Military spouses (box “e” on Form W-7), U.S. Military dependents (box “d” on Form W-7), and non-resident aliens applying for ITINs to claim tax treaty benefits (box “a” and ”h” on Form W-7).

 

Additional Information For Certifying Acceptance Agents (CAAs) and Acceptance Agents (AAs)

Can CAAs and AAs still submit Forms W-7 to the IRS for taxpayers?
Yes, CAAs and AAs can still submit Forms W-7 on behalf of their clients but must provide the original documents or certified copies from the issuing agency along with Form 14194, Certificate of Accuracy, unless the applicant is exempt as described above. If the applicant is exempt, CAAs and AAs must still provide identification documents along with the Form 14194, however, notarized copies of those documents will be accepted.

As a CAA or AA, is there anything I need to do differently when submitting my client's W-7 application for an ITIN?
As a CAA or AA you will be required to include original documentation or certified copies from the issuing agency along with your client's Form W-7 application. While using Form 14194, Certificate of Accuracy, in lieu of original documents is no longer appropriate, the IRS still requires that you submit it with the applications and necessary documents. IRS will make the determination of whether applicants qualify for an ITIN based on the documentation submitted. Note the exempt applicants described above.

Will IRS continue to process applications to become an AA or CAA?
IRS will not process any applications during this interim review period but those interested in being an AA or CAA should still submit their applications during the open season that runs through August 31, 2012.

Page Last Reviewed or Updated: 03-Jun-2013

The Need Help Filing A 1040x

Need help filing a 1040x 4. Need help filing a 1040x   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. Need help filing a 1040x Loan secured by benefits. Need help filing a 1040x Waiver of survivor benefits. Need help filing a 1040x Waiver of 30-day waiting period before annuity starting date. Need help filing a 1040x Involuntary cash-out of benefits not more than dollar limit. Need help filing a 1040x Exception for certain loans. Need help filing a 1040x Exception for QDRO. Need help filing a 1040x SIMPLE and safe harbor 401(k) plan exception. Need help filing a 1040x Setting Up a Qualified PlanAdopting a Written Plan Investing Plan Assets Minimum Funding RequirementDue dates. Need help filing a 1040x Installment percentage. Need help filing a 1040x Extended period for making contributions. Need help filing a 1040x 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. Need help filing a 1040x Caution: Form 5500-EZ not required. Need help filing a 1040x Form 5500. Need help filing a 1040x Electronic filing of Forms 5500 and 5500-SF. Need help filing a 1040x 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. Need help filing a 1040x dol. Need help filing a 1040x gov/ebsa/pdf/2013-5500. Need help filing a 1040x pdf www. Need help filing a 1040x dol. Need help filing a 1040x gov/ebsa/pdf/2013-5500-SF. Need help filing a 1040x pdf W-2 Wage and Tax Statement Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Need help filing a 1040x 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Need help filing a 1040x 1040 U. Need help filing a 1040x S. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x R. Need help filing a 1040x 10 plans. Need help filing a 1040x A sole proprietor or a partnership can set up one of these plans. Need help filing a 1040x A common-law employee or a partner cannot set up one of these plans. Need help filing a 1040x The plans described here can also be set up and maintained by employers that are corporations. Need help filing a 1040x All the rules discussed here apply to corporations except where specifically limited to the self-employed. Need help filing a 1040x The plan must be for the exclusive benefit of employees or their beneficiaries. Need help filing a 1040x These qualified plans can include coverage for a self-employed individual. Need help filing a 1040x As an employer, you can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. Need help filing a 1040x The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. Need help filing a 1040x Kinds of Plans There are two basic kinds of qualified plans—defined contribution plans and defined benefit plans—and different rules apply to each. Need help filing a 1040x 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. Need help filing a 1040x Defined Contribution Plan A defined contribution plan provides an individual account for each participant in the plan. Need help filing a 1040x It provides benefits to a participant largely based on the amount contributed to that participant's account. Need help filing a 1040x Benefits are also affected by any income, expenses, gains, losses, and forfeitures of other accounts that may be allocated to an account. Need help filing a 1040x A defined contribution plan can be either a profit-sharing plan or a money purchase pension plan. Need help filing a 1040x Profit-sharing plan. Need help filing a 1040x   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). Need help filing a 1040x 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. Need help filing a 1040x An employer may even make no contribution to the plan for a given year. Need help filing a 1040x   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. Need help filing a 1040x   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). Need help filing a 1040x Money purchase pension plan. Need help filing a 1040x   Contributions to a money purchase pension plan are fixed and are not based on your business profits. Need help filing a 1040x 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. Need help filing a 1040x This applies even though the compensation of a self-employed individual as a participant is based on earned income derived from business profits. Need help filing a 1040x Defined Benefit Plan A defined benefit plan is any plan that is not a defined contribution plan. Need help filing a 1040x Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. Need help filing a 1040x Actuarial assumptions and computations are required to figure these contributions. Need help filing a 1040x Generally, you will need continuing professional help to have a defined benefit plan. Need help filing a 1040x Qualification Rules To qualify for the tax benefits available to qualified plans, a plan must meet certain requirements (qualification rules) of the tax law. Need help filing a 1040x 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. Need help filing a 1040x The following is a brief overview of important qualification rules that generally have not yet been discussed. Need help filing a 1040x It is not intended to be all-inclusive. Need help filing a 1040x See Setting Up a Qualified Plan , later. Need help filing a 1040x Generally, the following qualification rules also apply to a SIMPLE 401(k) retirement plan. Need help filing a 1040x 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. Need help filing a 1040x Plan assets must not be diverted. Need help filing a 1040x   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. Need help filing a 1040x As a general rule, the assets cannot be diverted to the employer. Need help filing a 1040x Minimum coverage requirement must be met. Need help filing a 1040x   To be a qualified plan, a defined benefit plan must benefit at least the lesser of the following. Need help filing a 1040x 50 employees, or The greater of: 40% of all employees, or Two employees. Need help filing a 1040x If there is only one employee, the plan must benefit that employee. Need help filing a 1040x Contributions or benefits must not discriminate. Need help filing a 1040x   Under the plan, contributions or benefits to be provided must not discriminate in favor of highly compensated employees. Need help filing a 1040x Contributions and benefits must not be more than certain limits. Need help filing a 1040x   Your plan must not provide for contributions or benefits that are more than certain limits. Need help filing a 1040x 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. Need help filing a 1040x These limits are discussed later in this chapter under Contributions. Need help filing a 1040x Minimum vesting standard must be met. Need help filing a 1040x   Your plan must satisfy certain requirements regarding when benefits vest. Need help filing a 1040x A benefit is vested (you have a fixed right to it) when it becomes nonforfeitable. Need help filing a 1040x A benefit is nonforfeitable if it cannot be lost upon the happening, or failure to happen, of any event. Need help filing a 1040x Special rules apply to forfeited benefit amounts. Need help filing a 1040x 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. Need help filing a 1040x   Forfeitures under a defined benefit plan cannot be used to increase the benefits any employee would otherwise receive under the plan. Need help filing a 1040x Forfeitures must be used instead to reduce employer contributions. Need help filing a 1040x Participation. Need help filing a 1040x   In general, an employee must be allowed to participate in your plan if he or she meets both the following requirements. Need help filing a 1040x Has reached age 21. Need help filing a 1040x 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). Need help filing a 1040x A plan cannot exclude an employee because he or she has reached a specified age. Need help filing a 1040x Leased employee. Need help filing a 1040x   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. Need help filing a 1040x These rules include those in all the following areas. Need help filing a 1040x Nondiscrimination in coverage, contributions, and benefits. Need help filing a 1040x Minimum age and service requirements. Need help filing a 1040x Vesting. Need help filing a 1040x Limits on contributions and benefits. Need help filing a 1040x Top-heavy plan requirements. Need help filing a 1040x Contributions or benefits provided by the leasing organization for services performed for you are treated as provided by you. Need help filing a 1040x Benefit payment must begin when required. Need help filing a 1040x   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. Need help filing a 1040x The plan year in which the participant reaches the earlier of age 65 or the normal retirement age specified in the plan. Need help filing a 1040x The plan year in which the 10th anniversary of the year in which the participant began participating in the plan occurs. Need help filing a 1040x The plan year in which the participant separates from service. Need help filing a 1040x Early retirement. Need help filing a 1040x   Your plan can provide for payment of retirement benefits before the normal retirement age. Need help filing a 1040x 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. Need help filing a 1040x Satisfies the service requirement for the early retirement benefit. Need help filing a 1040x Separates from service with a nonforfeitable right to an accrued benefit. Need help filing a 1040x The benefit, which may be actuarially reduced, is payable when the early retirement age requirement is met. Need help filing a 1040x Required minimum distributions. Need help filing a 1040x   Special rules require minimum annual distributions from qualified plans, generally beginning after age  70½. Need help filing a 1040x See Required Distributions , under Distributions, later. Need help filing a 1040x Survivor benefits. Need help filing a 1040x   Defined benefit and money purchase pension plans must provide automatic survivor benefits in both the following forms. Need help filing a 1040x A qualified joint and survivor annuity for a vested participant who does not die before the annuity starting date. Need help filing a 1040x A qualified pre-retirement survivor annuity for a vested participant who dies before the annuity starting date and who has a surviving spouse. Need help filing a 1040x   The automatic survivor benefit also applies to any participant under a profit-sharing plan unless all the following conditions are met. Need help filing a 1040x The participant does not choose benefits in the form of a life annuity. Need help filing a 1040x 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. Need help filing a 1040x The plan is not a direct or indirect transferee of a plan that must provide automatic survivor benefits. Need help filing a 1040x Loan secured by benefits. Need help filing a 1040x   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. Need help filing a 1040x Waiver of survivor benefits. Need help filing a 1040x   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. Need help filing a 1040x The plan also must allow the participant to withdraw the waiver. Need help filing a 1040x The spouse's consent must be witnessed by a plan representative or notary public. Need help filing a 1040x Waiver of 30-day waiting period before annuity starting date. Need help filing a 1040x    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. Need help filing a 1040x   The waiver is allowed only if the distribution begins more than 7 days after the written explanation is provided. Need help filing a 1040x Involuntary cash-out of benefits not more than dollar limit. Need help filing a 1040x   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. Need help filing a 1040x   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. Need help filing a 1040x 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. Need help filing a 1040x   Benefits attributable to rollover contributions and earnings on them can be ignored in determining the present value of these benefits. Need help filing a 1040x   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. Need help filing a 1040x A section 402(f) notice must be sent prior to an involuntary cash-out of an eligible rollover distribution. Need help filing a 1040x See Section 402(f) Notice under Distributions, later, for more details. Need help filing a 1040x Consolidation, merger, or transfer of assets or liabilities. Need help filing a 1040x   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. Need help filing a 1040x (if the plan had then terminated). Need help filing a 1040x Benefits must not be assigned or alienated. Need help filing a 1040x   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. Need help filing a 1040x Exception for certain loans. Need help filing a 1040x   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. Need help filing a 1040x A disqualified person is defined later in this chapter under Prohibited Transactions. Need help filing a 1040x Exception for QDRO. Need help filing a 1040x   Compliance with a QDRO (qualified domestic relations order) does not result in a prohibited assignment or alienation of benefits. Need help filing a 1040x   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. Need help filing a 1040x 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. Need help filing a 1040x No benefit reduction for social security increases. Need help filing a 1040x   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. Need help filing a 1040x This rule also applies to plans supplementing the benefits provided by other federal or state laws. Need help filing a 1040x Elective deferrals must be limited. Need help filing a 1040x   If your plan provides for elective deferrals, it must limit those deferrals to the amount in effect for that particular year. Need help filing a 1040x See Limit on Elective Deferrals later in this chapter. Need help filing a 1040x Top-heavy plan requirements. Need help filing a 1040x   A top-heavy plan is one that mainly favors partners, sole proprietors, and other key employees. Need help filing a 1040x   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. Need help filing a 1040x Additional requirements apply to a top-heavy plan primarily to provide minimum benefits or contributions for non-key employees covered by the plan. Need help filing a 1040x   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. Need help filing a 1040x These qualification requirements for top-heavy plans are explained in section 416 and its regulations. Need help filing a 1040x SIMPLE and safe harbor 401(k) plan exception. Need help filing a 1040x   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. Need help filing a 1040x QACAs (discussed later) also are not subject to top-heavy requirements. Need help filing a 1040x Setting Up a Qualified Plan There are two basic steps in setting up a qualified plan. Need help filing a 1040x First you adopt a written plan. Need help filing a 1040x Then you invest the plan assets. Need help filing a 1040x You, the employer, are responsible for setting up and maintaining the plan. Need help filing a 1040x If you are self-employed, it is not necessary to have employees besides yourself to sponsor and set up a qualified plan. Need help filing a 1040x If you have employees, see Participation, under Qualification Rules, earlier. Need help filing a 1040x Set-up deadline. Need help filing a 1040x   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). Need help filing a 1040x Credit for startup costs. Need help filing a 1040x   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. Need help filing a 1040x For more information, see Credit for startup costs under Reminders, earlier. Need help filing a 1040x Adopting a Written Plan You must adopt a written plan. Need help filing a 1040x The plan can be an IRS-approved master or prototype plan offered by a sponsoring organization. Need help filing a 1040x Or it can be an individually designed plan. Need help filing a 1040x Written plan requirement. Need help filing a 1040x   To qualify, the plan you set up must be in writing and must be communicated to your employees. Need help filing a 1040x The plan's provisions must be stated in the plan. Need help filing a 1040x It is not sufficient for the plan to merely refer to a requirement of the Internal Revenue Code. Need help filing a 1040x Master or prototype plans. Need help filing a 1040x   Most qualified plans follow a standard form of plan (a master or prototype plan) approved by the IRS. Need help filing a 1040x Master and prototype plans are plans made available by plan providers for adoption by employers (including self-employed individuals). Need help filing a 1040x 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. Need help filing a 1040x Under a prototype plan, a separate trust or custodial account is established for each employer. Need help filing a 1040x Plan providers. Need help filing a 1040x   The following organizations generally can provide IRS-approved master or prototype plans. Need help filing a 1040x Banks (including some savings and loan associations and federally insured credit unions). Need help filing a 1040x Trade or professional organizations. Need help filing a 1040x Insurance companies. Need help filing a 1040x Mutual funds. Need help filing a 1040x Individually designed plan. Need help filing a 1040x   If you prefer, you can set up an individually designed plan to meet specific needs. Need help filing a 1040x Although advance IRS approval is not required, you can apply for approval by paying a fee and requesting a determination letter. Need help filing a 1040x You may need professional help for this. Need help filing a 1040x See Rev. Need help filing a 1040x Proc. Need help filing a 1040x 2014-6, 2014-1 I. Need help filing a 1040x R. Need help filing a 1040x B. Need help filing a 1040x 198, available at www. Need help filing a 1040x irs. Need help filing a 1040x gov/irb/2014-1_IRB/ar10. Need help filing a 1040x html, as annually updated, that may help you decide whether to apply for approval. Need help filing a 1040x Internal Revenue Bulletins are available on the IRS website at IRS. Need help filing a 1040x gov They are also available at most IRS offices and at certain libraries. Need help filing a 1040x User fee. Need help filing a 1040x   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. Need help filing a 1040x At least one of them must be a non-highly compensated employee participating in the plan. Need help filing a 1040x The fee does not apply to requests made by the later of the following dates. Need help filing a 1040x The end of the 5th plan year the plan is in effect. Need help filing a 1040x The end of any remedial amendment period for the plan that begins within the first 5 plan years. Need help filing a 1040x The request cannot be made by the sponsor of a prototype or similar plan the sponsor intends to market to participating employers. Need help filing a 1040x   For more information about whether the user fee applies, see Rev. Need help filing a 1040x Proc. Need help filing a 1040x 2014-8, 2014-1 I. Need help filing a 1040x R. Need help filing a 1040x B. Need help filing a 1040x 242, available at www. Need help filing a 1040x irs. Need help filing a 1040x gov/irb/2014-1_IRB/ar12. Need help filing a 1040x html, as may be annually updated; Notice 2003-49, 2003-32 I. Need help filing a 1040x R. Need help filing a 1040x B. Need help filing a 1040x 294, available at www. Need help filing a 1040x irs. Need help filing a 1040x gov/irb/2003-32_IRB/ar13. Need help filing a 1040x html; and Notice 2011-86, 2011-45 I. Need help filing a 1040x R. Need help filing a 1040x B. Need help filing a 1040x 698, available at www. Need help filing a 1040x irs. Need help filing a 1040x gov/irb/2011-45_IRB/ar11. Need help filing a 1040x html. Need help filing a 1040x Investing Plan Assets In setting up a qualified plan, you arrange how the plan's funds will be used to build its assets. Need help filing a 1040x You can establish a trust or custodial account to invest the funds. Need help filing a 1040x You, the trust, or the custodial account can buy an annuity contract from an insurance company. Need help filing a 1040x Life insurance can be included only if it is incidental to the retirement benefits. Need help filing a 1040x You set up a trust by a legal instrument (written document). Need help filing a 1040x You may need professional help to do this. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x If anyone other than a trustee holds them, however, the contracts or certificates must state they are not transferable. Need help filing a 1040x Other plan requirements. Need help filing a 1040x   For information on other important plan requirements, see Qualification Rules , earlier in this chapter. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x For information on this funding requirement, see section 412 and its regulations. Need help filing a 1040x Quarterly installments of required contributions. Need help filing a 1040x   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. Need help filing a 1040x If you do not pay the full installments timely, you may have to pay interest on any underpayment for the period of the underpayment. Need help filing a 1040x Due dates. Need help filing a 1040x   The due dates for the installments are 15 days after the end of each quarter. Need help filing a 1040x For a calendar-year plan, the installments are due April 15, July 15, October 15, and January 15 (of the following year). Need help filing a 1040x Installment percentage. Need help filing a 1040x   Each quarterly installment must be 25% of the required annual payment. Need help filing a 1040x Extended period for making contributions. Need help filing a 1040x   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. Need help filing a 1040x Contributions A qualified plan is generally funded by your contributions. Need help filing a 1040x However, employees participating in the plan may be permitted to make contributions, and you may be permitted to make contributions on your own behalf. Need help filing a 1040x See Employee Contributions and Elective Deferrals later. Need help filing a 1040x Contributions deadline. Need help filing a 1040x   You can make deductible contributions for a tax year up to the due date of your return (plus extensions) for that year. Need help filing a 1040x Self-employed individual. Need help filing a 1040x   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. Need help filing a 1040x Your net earnings must be from your personal services, not from your investments. Need help filing a 1040x 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. Need help filing a 1040x Employer Contributions There are certain limits on the contributions and other annual additions you can make each year for plan participants. Need help filing a 1040x There are also limits on the amount you can deduct. Need help filing a 1040x See Deduction Limits , later. Need help filing a 1040x Limits on Contributions and Benefits Your plan must provide that contributions or benefits cannot exceed certain limits. Need help filing a 1040x The limits differ depending on whether your plan is a defined contribution plan or a defined benefit plan. Need help filing a 1040x Defined benefit plan. Need help filing a 1040x   For 2013, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of the following amounts. Need help filing a 1040x 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Need help filing a 1040x $205,000 ($210,000 for 2014). Need help filing a 1040x Defined contribution plan. Need help filing a 1040x   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. Need help filing a 1040x 100% of the participant's compensation. Need help filing a 1040x $51,000 ($52,000 for 2014). Need help filing a 1040x   Catch-up contributions (discussed later under Limit on Elective Deferrals) are not subject to the above limit. Need help filing a 1040x Employee Contributions Participants may be permitted to make nondeductible contributions to a plan in addition to your contributions. Need help filing a 1040x Even though these employee contributions are not deductible, the earnings on them are tax free until distributed in later years. Need help filing a 1040x 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. Need help filing a 1040x See Regulations sections 1. Need help filing a 1040x 401(k)-2 and 1. Need help filing a 1040x 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). Need help filing a 1040x When Contributions Are Considered Made You generally apply your plan contributions to the year in which you make them. Need help filing a 1040x But you can apply them to the previous year if all the following requirements are met. Need help filing a 1040x You make them by the due date of your tax return for the previous year (plus extensions). Need help filing a 1040x The plan was established by the end of the previous year. Need help filing a 1040x The plan treats the contributions as though it had received them on the last day of the previous year. Need help filing a 1040x You do either of the following. Need help filing a 1040x You specify in writing to the plan administrator or trustee that the contributions apply to the previous year. Need help filing a 1040x You deduct the contributions on your tax return for the previous year. Need help filing a 1040x A partnership shows contributions for partners on Form 1065. Need help filing a 1040x Employer's promissory note. Need help filing a 1040x   Your promissory note made out to the plan is not a payment that qualifies for the deduction. Need help filing a 1040x Also, issuing this note is a prohibited transaction subject to tax. Need help filing a 1040x See Prohibited Transactions , later. Need help filing a 1040x Employer Deduction You can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. Need help filing a 1040x The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. Need help filing a 1040x Deduction Limits The deduction limit for your contributions to a qualified plan depends on the kind of plan you have. Need help filing a 1040x Defined contribution plans. Need help filing a 1040x   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. Need help filing a 1040x If you are self-employed, you must reduce this limit in figuring the deduction for contributions you make for your own account. Need help filing a 1040x See Deduction Limit for Self-Employed Individuals , later. Need help filing a 1040x   When figuring the deduction limit, the following rules apply. Need help filing a 1040x Elective deferrals (discussed later) are not subject to the limit. Need help filing a 1040x Compensation includes elective deferrals. Need help filing a 1040x The maximum compensation that can be taken into account for each employee in 2013 is $255,000 ($260,000 for 2014). Need help filing a 1040x Defined benefit plans. Need help filing a 1040x   The deduction for contributions to a defined benefit plan is based on actuarial assumptions and computations. Need help filing a 1040x Consequently, an actuary must figure your deduction limit. Need help filing a 1040x    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. Need help filing a 1040x Table 4–1. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x Compensation is your net earnings from self-employment, defined in chapter 1. Need help filing a 1040x This definition takes into account both the following items. Need help filing a 1040x The deduction for the deductible part of your self-employment tax. Need help filing a 1040x The deduction for contributions on your behalf to the plan. Need help filing a 1040x The deduction for your own contributions and your net earnings depend on each other. Need help filing a 1040x For this reason, you determine the deduction for your own contributions indirectly by reducing the contribution rate called for in your plan. Need help filing a 1040x To do this, use either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed in chapter 5. Need help filing a 1040x Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. Need help filing a 1040x Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. Need help filing a 1040x 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. Need help filing a 1040x Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. Need help filing a 1040x (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you get from the partnership. Need help filing a 1040x ) 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. Need help filing a 1040x Your combined deduction in a later year is limited to 25% of the participating employees' compensation for that year. Need help filing a 1040x For purposes of this limit, a SEP is treated as a profit-sharing (defined contribution) plan. Need help filing a 1040x However, this percentage limit must be reduced to figure your maximum deduction for contributions you make for yourself. Need help filing a 1040x See Deduction Limit for Self-Employed Individuals, earlier. Need help filing a 1040x The amount you carry over and deduct may be subject to the excise tax discussed next. Need help filing a 1040x Table 4-1, earlier, illustrates the carryover of excess contributions to a profit-sharing plan. Need help filing a 1040x 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. Need help filing a 1040x In general, a 10% excise tax applies to nondeductible contributions made to qualified pension and profit-sharing plans and to SEPs. Need help filing a 1040x Special rule for self-employed individuals. Need help filing a 1040x   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. Need help filing a 1040x 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. Need help filing a 1040x See Minimum Funding Requirement , earlier. Need help filing a 1040x Reporting the tax. Need help filing a 1040x   You must report the tax on your nondeductible contributions on Form 5330. Need help filing a 1040x Form 5330 includes a computation of the tax. Need help filing a 1040x See the separate instructions for completing the form. Need help filing a 1040x 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. Need help filing a 1040x A plan with this type of arrangement is popularly known as a “401(k) plan. Need help filing a 1040x ” (As a self-employed individual participating in the plan, you can contribute part of your before-tax net earnings from the business. Need help filing a 1040x ) This contribution is called an “elective deferral” because participants choose (elect) to defer receipt of the money. Need help filing a 1040x In general, a qualified plan can include a cash or deferred arrangement only if the qualified plan is one of the following plans. Need help filing a 1040x A profit-sharing plan. Need help filing a 1040x A money purchase pension plan in existence on June 27, 1974, that included a salary reduction arrangement on that date. Need help filing a 1040x Partnership. Need help filing a 1040x   A partnership can have a 401(k) plan. Need help filing a 1040x Restriction on conditions of participation. Need help filing a 1040x   The plan cannot require, as a condition of participation, that an employee complete more than 1 year of service. Need help filing a 1040x Matching contributions. Need help filing a 1040x   If your plan permits, you can make matching contributions for an employee who makes an elective deferral to your 401(k) plan. Need help filing a 1040x 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. Need help filing a 1040x Matching contributions are generally subject to the ACP test discussed earlier under Employee Contributions. Need help filing a 1040x Nonelective contributions. Need help filing a 1040x   You can also make contributions (other than matching contributions) for your participating employees without giving them the choice to take cash instead. Need help filing a 1040x These are called nonelective contributions. Need help filing a 1040x Employee compensation limit. Need help filing a 1040x   No more than $255,000 of the employee's compensation can be taken into account when figuring contributions other than elective deferrals in 2013. Need help filing a 1040x This limit is $260,000 in 2014. Need help filing a 1040x SIMPLE 401(k) plan. Need help filing a 1040x   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. Need help filing a 1040x A SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy plan requirements discussed earlier under Qualification Rules. Need help filing a 1040x For details about SIMPLE 401(k) plans, see SIMPLE 401(k) Plan in chapter 3. Need help filing a 1040x Distributions. Need help filing a 1040x   Certain rules apply to distributions from 401(k) plans. Need help filing a 1040x See Distributions From 401(k) Plans , later. Need help filing a 1040x Limit on Elective Deferrals There is a limit on the amount an employee can defer each year under these plans. Need help filing a 1040x This limit applies without regard to community property laws. Need help filing a 1040x Your plan must provide that your employees cannot defer more than the limit that applies for a particular year. Need help filing a 1040x For 2013 and 2014, the basic limit on elective deferrals is $17,500. Need help filing a 1040x This limit applies to all salary reduction contributions and elective deferrals. Need help filing a 1040x If, in conjunction with other plans, the deferral limit is exceeded, the difference is included in the employee's gross income. Need help filing a 1040x Catch-up contributions. Need help filing a 1040x   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. Need help filing a 1040x The catch-up contribution limit for 2013 and 2014 is $5,500. Need help filing a 1040x 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). Need help filing a 1040x However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. Need help filing a 1040x The catch-up contribution limit. Need help filing a 1040x The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Need help filing a 1040x Treatment of contributions. Need help filing a 1040x   Your contributions to your own 401(k) plan are generally deductible by you for the year they are contributed to the plan. Need help filing a 1040x Matching or nonelective contributions made to the plan are also deductible by you in the year of contribution. Need help filing a 1040x Your employees' elective deferrals other than designated Roth contributions are tax free until distributed from the plan. Need help filing a 1040x Elective deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. Need help filing a 1040x Forfeiture. Need help filing a 1040x   Employees have a nonforfeitable right at all times to their accrued benefit attributable to elective deferrals. Need help filing a 1040x Reporting on Form W-2. Need help filing a 1040x   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. Need help filing a 1040x You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. Need help filing a 1040x You must also include them in box 12. Need help filing a 1040x Mark the “Retirement plan” checkbox in box 13. Need help filing a 1040x For more information, see the Form W-2 instructions. Need help filing a 1040x Automatic Enrollment Your 401(k) plan can have an automatic enrollment feature. Need help filing a 1040x 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. Need help filing a 1040x These contributions are elective deferrals. Need help filing a 1040x An automatic enrollment feature will encourage employees' saving for retirement and will help your plan pass nondiscrimination testing (if applicable). Need help filing a 1040x For more information, see Publication 4674, Automatic Enrollment 401(k) Plans for Small Businesses. Need help filing a 1040x Eligible automatic contribution arrangement. Need help filing a 1040x   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. Need help filing a 1040x This automatic election will remain in place until the participant specifically elects not to have such deferral percentage made (or elects a different percentage). Need help filing a 1040x There is no required deferral percentage. Need help filing a 1040x Withdrawals. Need help filing a 1040x   Under an EACA, you may allow participants to withdraw their automatic contributions to the plan if certain conditions are met. Need help filing a 1040x The participant must elect the withdrawal no later than 90 days after the date of the first elective contributions under the EACA. Need help filing a 1040x The participant must withdraw the entire amount of EACA default contributions, including any earnings thereon. Need help filing a 1040x   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. Need help filing a 1040x The additional 10% tax on early distributions will not apply to the distribution. Need help filing a 1040x Notice requirement. Need help filing a 1040x   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. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x The notice also must explain how contributions will be invested in the absence of an investment election by the employee. Need help filing a 1040x Qualified automatic contribution arrangement. Need help filing a 1040x    A qualified automatic contribution arrangement (QACA) is a type of safe harbor plan. Need help filing a 1040x It contains an automatic enrollment feature, and mandatory employer contributions are required. Need help filing a 1040x If your plan includes a QACA, it will not be subject to the ADP test (discussed later) nor the top-heavy requirements (discussed earlier). Need help filing a 1040x Additionally, your plan will not be subject to the actual contribution percentage (ACP) test if certain additional requirements are met. Need help filing a 1040x 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. Need help filing a 1040x In order to not have default elective deferrals made, an employee must make an affirmative election specifying a deferral percentage (including zero, if desired). Need help filing a 1040x If an employee does not make an affirmative election, the default deferral percentage must meet the following conditions. Need help filing a 1040x It must be applied uniformly. Need help filing a 1040x It must not exceed 10%. Need help filing a 1040x It must be at least 3% in the first plan year it applies to an employee and through the end of the following year. Need help filing a 1040x It must increase to at least 4% in the following plan year. Need help filing a 1040x It must increase to at least 5% in the following plan year. Need help filing a 1040x It must increase to at least 6% in subsequent plan years. Need help filing a 1040x Matching or nonelective contributions. Need help filing a 1040x   Under the terms of the QACA, you must make either matching or nonelective contributions according to the following terms. Need help filing a 1040x Matching contributions. Need help filing a 1040x You must make matching contributions on behalf of each non-highly compensated employee in the following amounts. Need help filing a 1040x An amount equal to 100% of elective deferrals, up to 1% of compensation. Need help filing a 1040x An amount equal to 50% of elective deferrals, from 1% up to 6% of compensation. Need help filing a 1040x Other formulas may be used as long as they are at least as favorable to non-highly compensated employees. Need help filing a 1040x The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. Need help filing a 1040x Nonelective contributions. Need help filing a 1040x 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. Need help filing a 1040x Vesting requirements. Need help filing a 1040x   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. Need help filing a 1040x These contributions are subject to special withdrawal restrictions, discussed later. Need help filing a 1040x Notice requirements. Need help filing a 1040x   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. Need help filing a 1040x The notice must be written in a manner calculated to be understood by the average employee, and it must be accurate and comprehensive. Need help filing a 1040x 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. Need help filing a 1040x Additionally, the notice must explain how contributions will be invested in the absence of any investment election by the employee. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x The plan must then pay the employee that amount, plus earnings on the amount through the end of 2013, by April 15, 2014. Need help filing a 1040x Excess withdrawn by April 15. Need help filing a 1040x   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. Need help filing a 1040x However, any income earned in 2013 on the excess deferral taken out is taxable in the tax year in which it is taken out. Need help filing a 1040x The distribution is not subject to the additional 10% tax on early distributions. Need help filing a 1040x   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. Need help filing a 1040x   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. Need help filing a 1040x Excess not withdrawn by April 15. Need help filing a 1040x   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. Need help filing a 1040x In effect, an excess deferral left in the plan is taxed twice, once when contributed and again when distributed. Need help filing a 1040x 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. Need help filing a 1040x Reporting corrective distributions on Form 1099-R. Need help filing a 1040x   Report corrective distributions of excess deferrals (including any earnings) on Form 1099-R. Need help filing a 1040x For specific information about reporting corrective distributions, see the Instructions for Forms 1099-R and 5498. Need help filing a 1040x Tax on excess contributions of highly compensated employees. Need help filing a 1040x   The law provides tests to detect discrimination in a plan. Need help filing a 1040x 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. Need help filing a 1040x Report the tax on Form 5330. Need help filing a 1040x The ADP test does not apply to a safe harbor 401(k) plan (discussed next) nor to a QACA. Need help filing a 1040x Also, the ACP test does not apply to these plans if certain additional requirements are met. Need help filing a 1040x   The tax for the year is 10% of the excess contributions for the plan year ending in your tax year. Need help filing a 1040x 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. Need help filing a 1040x   See Regulations sections 1. Need help filing a 1040x 401(k)-2 and 1. Need help filing a 1040x 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). Need help filing a 1040x    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. Need help filing a 1040x Safe harbor 401(k) plan. Need help filing a 1040x 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. Need help filing a 1040x For your plan to be a safe harbor plan, you must meet the following conditions. Need help filing a 1040x Matching or nonelective contributions. Need help filing a 1040x You must make matching or nonelective contributions according to one of the following formulas. Need help filing a 1040x Matching contributions. Need help filing a 1040x You must make matching contributions according to the following rules. Need help filing a 1040x You must contribute an amount equal to 100% of each non-highly compensated employee's elective deferrals, up to 3% of compensation. Need help filing a 1040x You must contribute an amount equal to 50% of each non-highly compensated employee's elective deferrals, from 3% up to 5% of compensation. Need help filing a 1040x The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. Need help filing a 1040x Nonelective contributions. Need help filing a 1040x 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. Need help filing a 1040x These mandatory matching and nonelective contributions must be immediately 100% vested and are subject to special withdrawal restrictions. Need help filing a 1040x Notice requirement. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x Elective deferrals designated as Roth contributions must be maintained in a separate Roth account. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x 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. Need help filing a 1040x An employee's nonexclusion period for a plan is the 5-tax-year period beginning with the earlier of the following tax years. Need help filing a 1040x 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. Need help filing a 1040x Rollover. Need help filing a 1040x   Beginning September 28, 2010, a rollover from another account can be made to a designated Roth account in the same plan. Need help filing a 1040x For additional information on these in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Need help filing a 1040x R. Need help filing a 1040x B. Need help filing a 1040x 872, available at www. Need help filing a 1040x irs. Need help filing a 1040x gov/irb/2010-51_IRB/ar11. Need help filing a 1040x html, and Notice 2013-74. Need help filing a 1040x A distribution from a designated Roth account can only be rolled over to another designated Roth account or a Roth IRA. Need help filing a 1040x Rollover amounts do not apply toward the annual deferral limit. Need help filing a 1040x 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. Need help filing a 1040x See the Form W-2 and 1099-R instructions for detailed information. Need help filing a 1040x Distributions Amounts paid to plan participants from a qualified plan are called distributions. Need help filing a 1040x Distributions may be nonperiodic, such as lump-sum distributions, or periodic, such as annuity payments. Need help filing a 1040x Also, certain loans may be treated as distributions. Need help filing a 1040x See Loans Treated as Distributions in Publication 575. Need help filing a 1040x 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). Need help filing a 1040x These distribution rules apply individually to each qualified plan. Need help filing a 1040x You cannot satisfy the requirement for one plan by taking a distribution from another. Need help filing a 1040x The plan must provide that these rules override any inconsistent distribution options previously offered. Need help filing a 1040x Minimum distribution. Need help filing a 1040x   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. Need help filing a 1040x This minimum is figured by dividing the account balance by the applicable life expectancy. Need help filing a 1040x The plan administrator can use the life expectancy tables in Appendix C of Publication 590 for this purpose. Need help filing a 1040x For more information on figuring the minimum distribution, see Tax on Excess Accumulation in Publication 575. Need help filing a 1040x Required beginning date. Need help filing a 1040x   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. Need help filing a 1040x   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. Need help filing a 1040x Calendar year in which he or she reaches age 70½. Need help filing a 1040x Calendar year in which he or she retires from employment with the employer maintaining the plan. Need help filing a 1040x 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. Need help filing a 1040x   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. Need help filing a 1040x For more information, see Tax on Excess Accumulation in Publication 575. Need help filing a 1040x Distributions after the starting year. Need help filing a 1040x   The distribution required to be made by April 1 is treated as a distribution for the starting year. Need help filing a 1040x (The starting year is the year in which the participant meets (1) or (2) above, whichever applies. Need help filing a 1040x ) After the starting year, the participant must receive the required distribution for each year by December 31 of that year. Need help filing a 1040x 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). Need help filing a 1040x Distributions after participant's death. Need help filing a 1040x   See Publication 575 for the special rules covering distributions made after the death of a participant. Need help filing a 1040x Distributions From 401(k) Plans Generally, distributions cannot be made until one of the following occurs. Need help filing a 1040x The employee retires, dies, becomes disabled, or otherwise severs employment. Need help filing a 1040x The plan ends and no other defined contribution plan is established or continued. Need help filing a 1040x 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. Need help filing a 1040x For the rules on hardship distributions, including the limits on them, see Regulations section 1. Need help filing a 1040x 401(k)-1(d). Need help filing a 1040x The employee becomes eligible for a qualified reservist distribution (defined next). Need help filing a 1040x Certain distributions listed above may be subject to the tax on early distributions discussed later. Need help filing a 1040x Qualified reservist distributions. Need help filing a 1040x   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. Need help filing a 1040x All or part of a qualified reservist distribution can be recontributed to an IRA. Need help filing a 1040x The additional 10% tax on early distributions does not apply to a qualified reservist distribution. Need help filing a 1040x 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. Need help filing a 1040x Since most recipients have no cost basis, a distribution is generally fully taxable. Need help filing a 1040x An exception is a distribution that is properly rolled over as discussed under Rollover, next. Need help filing a 1040x The tax treatment of distributions depends on whether they are made periodically over several years or life (periodic distributions) or are nonperiodic distributions. Need help filing a 1040x 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. Need help filing a 1040x Note. Need help filing a 1040x 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. Need help filing a 1040x Also, a distribution from a designated Roth account is entirely tax-free if certain conditions are met. Need help filing a 1040x See Qualified distributions under Qualified Roth Contribution Program, earlier. Need help filing a 1040x Rollover. Need help filing a 1040x   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. Need help filing a 1040x However, it may be subject to withholding as discussed under Withholding requirement, later. Need help filing a 1040x 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. Need help filing a 1040x Eligible rollover distribution. Need help filing a 1040x   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. Need help filing a 1040x A required minimum distribution. Need help filing a 1040x See Required Distributions , earlier. Need help filing a 1040x Any of a series of substantially equal payments made at least once a year over any of the following periods. Need help filing a 1040x The employee's life or life expectancy. Need help filing a 1040x The joint lives or life expectancies of the employee and beneficiary. Need help filing a 1040x A period of 10 years or longer. Need help filing a 1040x A hardship distribution. Need help filing a 1040x The portion of a distribution that represents the return of an employee's nondeductible contributions to the plan. Need help filing a 1040x See Employee Contributions , earlier, and Rollover of nontaxable amounts, next. Need help filing a 1040x Loans treated as distributions. Need help filing a 1040x Dividends on employer securities. Need help filing a 1040x The cost of any life insurance coverage provided under a qualified retirement plan. Need help filing a 1040x Similar items designated by the IRS in published guidance. Need help filing a 1040x See, for example, the Instructions for Forms 1099-R and 5498. Need help filing a 1040x Rollover of nontaxable amounts. Need help filing a 1040x   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. Need help filing a 1040x 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. Need help filing a 1040x If the rollover is to an IRA, the transfer can be made by any rollover method. Need help filing a 1040x Note. Need help filing a 1040x A distribution from a designated Roth account can be rolled over to another designated Roth account or to a Roth IRA. Need help filing a 1040x 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). Need help filing a 1040x More information. Need help filing a 1040x   For more information about rollovers, see Rollovers in Pubs. Need help filing a 1040x 575 and 590. Need help filing a 1040x Withholding requirement. Need help filing a 1040x   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. Need help filing a 1040x Exceptions. Need help filing a 1040x   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. Need help filing a 1040x   If the distribution is not an eligible rollover distribution, defined earlier, the 20% withholding requirement does not apply. Need help filing a 1040x Other withholding rules apply to distributions that are not eligible rollover distributions, such as long-term periodic distributions and required distributions (periodic or nonperiodic). Need help filing a 1040x However, the participant can choose not to have tax withheld from these distributions. Need help filing a 1040x If the participant does not make this choice, the following withholding rules apply. Need help filing a 1040x For periodic distributions, withholding is based on their treatment as wages. Need help filing a 1040x For nonperiodic distributions, 10% of the taxable part is withheld. Need help filing a 1040x Estimated tax payments. Need help filing a 1040x   If no income tax is withheld or not enough tax is withheld, the recipient of a distribution may have to make estimated tax payments. Need help filing a 1040x For more information, see Withholding Tax and Estimated Tax in Publication 575. Need help filing a 1040x Section 402(f) Notice. Need help filing a 1040x   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. Need help filing a 1040x That the distribution may be directly transferred to an eligible retirement plan and information about which distributions are eligible for this direct transfer. Need help filing a 1040x That tax will be withheld from the distribution if it is not directly transferred to an eligible retirement plan. Need help filing a 1040x 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. Need help filing a 1040x Certain other rules that may be applicable. Need help filing a 1040x   Notice 2009-68, 2009-39 I. Need help filing a 1040x R. Need help filing a 1040x B. Need help filing a 1040x 423, available at www. Need help filing a 1040x irs. Need help filing a 1040x gov/irb/2009-39_IRB/ar14. Need help filing a 1040x html, contains two updated safe harbor section 402(f) notices that plan administrators may provide recipients of eligible rollover distributions. Need help filing a 1040x If the plan allows in-plan Roth rollovers, the 402(f) notice must be amended to reflect this. Need help filing a 1040x Notice 2010-84 contains guidance on how to modify a 402(f) notice for in-plan Roth rollovers. Need help filing a 1040x Timing of notice. Need help filing a 1040x   The notice generally must be provided no less than 30 days and no more than 180 days before the date of a distribution. Need help filing a 1040x Method of notice. Need help filing a 1040x   The written notice must be provided individually to each distributee of an eligible rollover distribution. Need help filing a 1040x Posting of the notice is not sufficient. Need help filing a 1040x However, the written requirement may be satisfied through the use of electronic media if certain additional conditions are met. Need help filing a 1040x See Regulations section 1. Need help filing a 1040x 401(a)-21. Need help filing a 1040x Tax on failure to give notice. Need help filing a 1040x   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. Need help filing a 1040x The tax will not be imposed if it is shown that such failure is due to reasonable cause and not to willful neglect. Need help filing a 1040x 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. Need help filing a 1040x This tax applies to the amount received that the employee must include in income. Need help filing a 1040x Exceptions. Need help filing a 1040x   The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances. Need help filing a 1040x Made to a beneficiary (or to the estate of the employee) on or after the death of the employee. Need help filing a 1040x Made due to the employee having a qualifying disability. Need help filing a 1040x 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. Need help filing a 1040x (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. Need help filing a 1040x ) Made to an employee after separation from service if the separation occurred during o