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How To Amend 2012 Taxes

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How To Amend 2012 Taxes

How to amend 2012 taxes Publication 541 - Introductory Material Table of Contents Reminder IntroductionTax questions. How to amend 2012 taxes Ordering forms and publications. How to amend 2012 taxes Useful Items - You may want to see: Reminder Photographs of missing children. How to amend 2012 taxes  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How to amend 2012 taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to amend 2012 taxes You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How to amend 2012 taxes Introduction This publication provides supplemental federal income tax information for partnerships and partners. How to amend 2012 taxes It supplements the information provided in the Instructions for Form 1065, U. How to amend 2012 taxes S. How to amend 2012 taxes Return of Partnership Income, and the Partner's Instructions for Schedule K-1 (Form 1065). How to amend 2012 taxes Generally, a partnership does not pay tax on its income but “passes through” any profits or losses to its partners. How to amend 2012 taxes Partners must include partnership items on their tax returns. How to amend 2012 taxes For a discussion of business expenses a partnership can deduct, see Publication 535, Business Expenses. How to amend 2012 taxes Members of oil and gas partnerships should read about the deduction for depletion in chapter 9 of that publication. How to amend 2012 taxes Certain partnerships must have a tax matters partner (TMP) who is also a general partner. How to amend 2012 taxes For information on the rules for designating a TMP, see Designation of Tax Matters Partner (TMP) in the Form 1065 instructions and section 301. How to amend 2012 taxes 6231(a)(7)-1 of the regulations. How to amend 2012 taxes Many rules in this publication do not apply to partnerships that file Form 1065-B, U. How to amend 2012 taxes S. How to amend 2012 taxes Return of Income for Electing Large Partnerships. How to amend 2012 taxes For the rules that apply to these partnerships, see the instructions for Form 1065-B. How to amend 2012 taxes However, the partners of electing large partnerships can use the rules in this publication except as otherwise noted. How to amend 2012 taxes Withholding on foreign partner or firm. How to amend 2012 taxes   If a partnership acquires a U. How to amend 2012 taxes S. How to amend 2012 taxes real property interest from a foreign person or firm, the partnership may have to withhold tax on the amount it pays for the property (including cash, the fair market value of other property, and any assumed liability). How to amend 2012 taxes If a partnership has income effectively connected with a trade or business in the United States, it must withhold on the income allocable to its foreign partners. How to amend 2012 taxes A partnership may have to withhold tax on a foreign partner's distributive share of fixed or determinable income not effectively connected with a U. How to amend 2012 taxes S. How to amend 2012 taxes trade or business. How to amend 2012 taxes A partnership that fails to withhold may be held liable for the tax, applicable penalties, and interest. How to amend 2012 taxes   For more information, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. How to amend 2012 taxes Comments and suggestions. How to amend 2012 taxes   We welcome your comments about this publication and your suggestions for future editions. How to amend 2012 taxes   You can write to: Internal Revenue Service Tax Forms and Publications  SE:W:CAR:MP:TFP 1111 Constitution Ave. How to amend 2012 taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How to amend 2012 taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to amend 2012 taxes    You can send us comments from www. How to amend 2012 taxes irs. How to amend 2012 taxes gov/formspubs. How to amend 2012 taxes Click on “More Information” and then on “Comment on Tax Forms and Publications. How to amend 2012 taxes ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. How to amend 2012 taxes Tax questions. How to amend 2012 taxes   If you have a tax question, check the information available at IRS. How to amend 2012 taxes gov or call 1-800-829-4933. How to amend 2012 taxes We cannot answer tax questions at the address listed above. How to amend 2012 taxes Ordering forms and publications. How to amend 2012 taxes    Visit www. How to amend 2012 taxes irs. How to amend 2012 taxes gov/formspubs to download forms and publications, call 1-800-829-3676, or write to one of the addresses shown under How To Get Tax Help in the back of this publication. How to amend 2012 taxes Useful Items - You may want to see: Publication 334 Tax Guide for Small Business 505 Tax Withholding and Estimated Tax 535 Business Expenses 537 Installment Sales 538 Accounting Periods and Methods 544 Sales and Other Dispositions of Assets 551 Basis of Assets 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property See How To Get Tax Help near the end of this publication for information about getting publications and forms. How to amend 2012 taxes Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Virginia Office of the Attorney General

Website: Virginia Office of the Attorney General

Address: Virginia Office of the Attorney General
Consumer Protection Section
900 E. Main St.
Richmond, VA 23219

Phone Number: 804-786-2042

Toll-free: 1-800-552-9963 (VA)

TTY: 1-800-828-1120

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Regional Consumer Protection Offices

Office of the Attorney General- Northern Virginia

Website: Office of the Attorney General- Northern Virginia

Address: Office of the Attorney General- Northern Virginia
10555 Main St., Suite 350
Fairfax, VA 22030

Phone Number: 703-277-3540

Office of the Attorney General- Southwest Region

Website: Office of the Attorney General- Southwest Region

Address: Office of the Attorney General- Southwest Region
204 Abingdon Place
Abingdon, VA 24211

Phone Number: 276-628-2759

Office of the Attorney General- Western Region

Website: Office of the Attorney General- Western Region

Address: Office of the Attorney General- Western Region
3033 Peters Creek Rd.
Roanoke, VA 24019

Phone Number: 540-562-3570

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County Consumer Protection Offices

Fairfax County Department of Cable Communications and Consumer Protection

Website: Fairfax County Department of Cable Communications and Consumer Protection

Address: Fairfax County Department of Cable Communications and Consumer Protection
12000 Government Center Pkwy., Suite 433
Fairfax, VA 22035

Phone Number: 703-222-8435

TTY: 711

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

State Corporation Commission

Website: State Corporation Commission

Address: State Corporation Commission
Bureau of Financial Institutions
PO Box 640
Richmond, VA 23218

Phone Number: 804-371-9657

Toll-free: 1-800-552-7945 (VA)

TTY: 804-371-9206

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

State Corporation Commission

Website: State Corporation Commission

Address: State Corporation Commission
Bureau of Insurance
PO Box 1157
Richmond, VA 23218-1157

Phone Number: 804-371-9741

Toll-free: 1-877-310-6560

TTY: 804-371-9206

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

State Corporation Commission

Website: State Corporation Commission

Address: State Corporation Commission
Division of Securities and Retail Franchising
PO Box 1197
Richmond, VA 23218

Phone Number: 804-371-9051

Toll-free: 1-800-552-7945 (VA)

TTY: 804-371-9206

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

State Corporation Commission

Website: State Corporation Commission

Address: State Corporation Commission
Division of Energy Regulation
PO Box 1197
Richmond, VA 23218

Phone Number: 804-371-9611

Toll-free: 1-800-552-7945 (VA)

TTY: 804-371-9206

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The How To Amend 2012 Taxes

How to amend 2012 taxes 3. How to amend 2012 taxes   SIMPLE Plans Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: SIMPLE IRA PlanWho Can Set Up a SIMPLE IRA Plan? Who Can Participate in a SIMPLE IRA Plan? How To Set Up a SIMPLE IRA Plan Notification Requirement Contribution Limits When To Deduct Contributions Where To Deduct Contributions Tax Treatment of Contributions Distributions (Withdrawals) More Information on SIMPLE IRA Plans SIMPLE 401(k) Plan Topics - This chapter discusses: SIMPLE IRA plan SIMPLE 401(k) plan Useful Items - You may want to see: Publications 590 Individual Retirement Arrangements (IRAs) 3998 Choosing A Retirement Solution for Your Small Business 4284 SIMPLE IRA Plan Checklist 4334 SIMPLE IRA Plans for Small Businesses Forms (and Instructions) W-2 Wage and Tax Statement 5304-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–Not for Use With a Designated Financial Institution 5305-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–for Use With a Designated Financial Institution 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs A savings incentive match plan for employees (SIMPLE plan) is a written arrangement that provides you and your employees with a simplified way to make contributions to provide retirement income. How to amend 2012 taxes Under a SIMPLE plan, employees can choose to make salary reduction contributions to the plan rather than receiving these amounts as part of their regular pay. How to amend 2012 taxes In addition, you will contribute matching or nonelective contributions. How to amend 2012 taxes SIMPLE plans can only be maintained on a calendar-year basis. How to amend 2012 taxes A SIMPLE plan can be set up in either of the following ways. How to amend 2012 taxes Using SIMPLE IRAs (SIMPLE IRA plan). How to amend 2012 taxes As part of a 401(k) plan (SIMPLE 401(k) plan). How to amend 2012 taxes Many financial institutions will help you set up a SIMPLE plan. How to amend 2012 taxes SIMPLE IRA Plan A SIMPLE IRA plan is a retirement plan that uses SIMPLE IRAs for each eligible employee. How to amend 2012 taxes Under a SIMPLE IRA plan, a SIMPLE IRA must be set up for each eligible employee. How to amend 2012 taxes For the definition of an eligible employee, see Who Can Participate in a SIMPLE IRA Plan , later. How to amend 2012 taxes Who Can Set Up a SIMPLE IRA Plan? You can set up a SIMPLE IRA plan if you meet both the following requirements. How to amend 2012 taxes You meet the employee limit. How to amend 2012 taxes You do not maintain another qualified plan unless the other plan is for collective bargaining employees. How to amend 2012 taxes Employee limit. How to amend 2012 taxes   You can set up a SIMPLE IRA plan only if you had 100 or fewer employees who received $5,000 or more in compensation from you for the preceding year. How to amend 2012 taxes Under this rule, you must take into account all employees employed at any time during the calendar year regardless of whether they are eligible to participate. How to amend 2012 taxes Employees include self-employed individuals who received earned income and leased employees (defined in chapter 1). How to amend 2012 taxes   Once you set up a SIMPLE IRA plan, you must continue to meet the 100-employee limit each year you maintain the plan. How to amend 2012 taxes Grace period for employers who cease to meet the 100-employee limit. How to amend 2012 taxes   If you maintain the SIMPLE IRA plan for at least 1 year and you cease to meet the 100-employee limit in a later year, you will be treated as meeting it for the 2 calendar years immediately following the calendar year for which you last met it. How to amend 2012 taxes   A different rule applies if you do not meet the 100-employee limit because of an acquisition, disposition, or similar transaction. How to amend 2012 taxes Under this rule, the SIMPLE IRA plan will be treated as meeting the 100-employee limit for the year of the transaction and the 2 following years if both the following conditions are satisfied. How to amend 2012 taxes Coverage under the plan has not significantly changed during the grace period. How to amend 2012 taxes The SIMPLE IRA plan would have continued to qualify after the transaction if you had remained a separate employer. How to amend 2012 taxes    The grace period for acquisitions, dispositions, and similar transactions also applies if, because of these types of transactions, you do not meet the rules explained under Other qualified plan or Who Can Participate in a SIMPLE IRA Plan, below. How to amend 2012 taxes Other qualified plan. How to amend 2012 taxes   The SIMPLE IRA plan generally must be the only retirement plan to which you make contributions, or to which benefits accrue, for service in any year beginning with the year the SIMPLE IRA plan becomes effective. How to amend 2012 taxes Exception. How to amend 2012 taxes   If you maintain a qualified plan for collective bargaining employees, you are permitted to maintain a SIMPLE IRA plan for other employees. How to amend 2012 taxes Who Can Participate in a SIMPLE IRA Plan? Eligible employee. How to amend 2012 taxes   Any employee who received at least $5,000 in compensation during any 2 years preceding the current calendar year and is reasonably expected to receive at least $5,000 during the current calendar year is eligible to participate. How to amend 2012 taxes The term “employee” includes a self-employed individual who received earned income. How to amend 2012 taxes   You can use less restrictive eligibility requirements (but not more restrictive ones) by eliminating or reducing the prior year compensation requirements, the current year compensation requirements, or both. How to amend 2012 taxes For example, you can allow participation for employees who received at least $3,000 in compensation during any preceding calendar year. How to amend 2012 taxes However, you cannot impose any other conditions for participating in a SIMPLE IRA plan. How to amend 2012 taxes Excludable employees. How to amend 2012 taxes   The following employees do not need to be covered under a SIMPLE IRA plan. How to amend 2012 taxes Employees who are covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you. How to amend 2012 taxes Nonresident alien employees who have received no U. How to amend 2012 taxes S. How to amend 2012 taxes source wages, salaries, or other personal services compensation from you. How to amend 2012 taxes Compensation. How to amend 2012 taxes   Compensation for employees is the total wages, tips, and other compensation from the employer subject to federal income tax withholding and the amounts paid for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority. How to amend 2012 taxes Compensation also includes the employee's salary reduction contributions made under this plan and, if applicable, elective deferrals under a section 401(k) plan, a SARSEP, or a section 403(b) annuity contract and compensation deferred under a section 457 plan required to be reported by the employer on Form W-2. How to amend 2012 taxes If you are self-employed, compensation is your net earnings from self-employment (line 4 of Short Schedule SE or line 6 of Long Schedule SE (Form 1040)) before subtracting any contributions made to the SIMPLE IRA plan for yourself. How to amend 2012 taxes How To Set Up a SIMPLE IRA Plan You can use Form 5304-SIMPLE or Form 5305-SIMPLE to set up a SIMPLE IRA plan. How to amend 2012 taxes Each form is a model savings incentive match plan for employees (SIMPLE) plan document. How to amend 2012 taxes Which form you use depends on whether you select a financial institution or your employees select the institution that will receive the contributions. How to amend 2012 taxes Use Form 5304-SIMPLE if you allow each plan participant to select the financial institution for receiving his or her SIMPLE IRA plan contributions. How to amend 2012 taxes Use Form 5305-SIMPLE if you require that all contributions under the SIMPLE IRA plan be deposited initially at a designated financial institution. How to amend 2012 taxes The SIMPLE IRA plan is adopted when you have completed all appropriate boxes and blanks on the form and you (and the designated financial institution, if any) have signed it. How to amend 2012 taxes Keep the original form. How to amend 2012 taxes Do not file it with the IRS. How to amend 2012 taxes Other uses of the forms. How to amend 2012 taxes   If you set up a SIMPLE IRA plan using Form 5304-SIMPLE or Form 5305-SIMPLE, you can use the form to satisfy other requirements, including the following. How to amend 2012 taxes Meeting employer notification requirements for the SIMPLE IRA plan. How to amend 2012 taxes Form 5304-SIMPLE and Form 5305-SIMPLE contain a Model Notification to Eligible Employees that provides the necessary information to the employee. How to amend 2012 taxes Maintaining the SIMPLE IRA plan records and proving you set up a SIMPLE IRA plan for employees. How to amend 2012 taxes Deadline for setting up a SIMPLE IRA plan. How to amend 2012 taxes   You can set up a SIMPLE IRA plan effective on any date from January 1 through October 1 of a year, provided you did not previously maintain a SIMPLE IRA plan. How to amend 2012 taxes This requirement does not apply if you are a new employer that comes into existence after October 1 of the year the SIMPLE IRA plan is set up and you set up a SIMPLE IRA plan as soon as administratively feasible after your business comes into existence. How to amend 2012 taxes If you previously maintained a SIMPLE IRA plan, you can set up a SIMPLE IRA plan effective only on January 1 of a year. How to amend 2012 taxes A SIMPLE IRA plan cannot have an effective date that is before the date you actually adopt the plan. How to amend 2012 taxes Setting up a SIMPLE IRA. How to amend 2012 taxes   SIMPLE IRAs are the individual retirement accounts or annuities into which the contributions are deposited. How to amend 2012 taxes A SIMPLE IRA must be set up for each eligible employee. How to amend 2012 taxes Forms 5305-S, SIMPLE Individual Retirement Trust Account, and 5305-SA, SIMPLE Individual Retirement Custodial Account, are model trust and custodial account documents the participant and the trustee (or custodian) can use for this purpose. How to amend 2012 taxes   A SIMPLE IRA cannot be a Roth IRA. How to amend 2012 taxes Contributions to a SIMPLE IRA will not affect the amount an individual can contribute to a Roth or traditional IRA. How to amend 2012 taxes Deadline for setting up a SIMPLE IRA. How to amend 2012 taxes   A SIMPLE IRA must be set up for an employee before the first date by which a contribution is required to be deposited into the employee's IRA. How to amend 2012 taxes See Time limits for contributing funds , later, under Contribution Limits. How to amend 2012 taxes Credit for startup costs. How to amend 2012 taxes   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE IRA plan that first became effective in 2013. How to amend 2012 taxes For more information, see Credit for startup costs under Reminders, earlier. How to amend 2012 taxes Notification Requirement If you adopt a SIMPLE IRA plan, you must notify each employee of the following information before the beginning of the election period. How to amend 2012 taxes The employee's opportunity to make or change a salary reduction choice under a SIMPLE IRA plan. How to amend 2012 taxes Your decision to make either matching contributions or nonelective contributions (discussed later). How to amend 2012 taxes A summary description provided by the financial institution. How to amend 2012 taxes Written notice that his or her balance can be transferred without cost or penalty if they use a designated financial institution. How to amend 2012 taxes Election period. How to amend 2012 taxes   The election period is generally the 60-day period immediately preceding January 1 of a calendar year (November 2 to December 31 of the preceding calendar year). How to amend 2012 taxes However, the dates of this period are modified if you set up a SIMPLE IRA plan in mid-year (for example, on July 1) or if the 60-day period falls before the first day an employee becomes eligible to participate in the SIMPLE IRA plan. How to amend 2012 taxes   A SIMPLE IRA plan can provide longer periods for permitting employees to enter into salary reduction agreements or to modify prior agreements. How to amend 2012 taxes For example, a SIMPLE IRA plan can provide a 90-day election period instead of the 60-day period. How to amend 2012 taxes Similarly, in addition to the 60-day period, a SIMPLE IRA plan can provide quarterly election periods during the 30 days before each calendar quarter, other than the first quarter of each year. How to amend 2012 taxes Contribution Limits Contributions are made up of salary reduction contributions and employer contributions. How to amend 2012 taxes You, as the employer, must make either matching contributions or nonelective contributions, defined later. How to amend 2012 taxes No other contributions can be made to the SIMPLE IRA plan. How to amend 2012 taxes These contributions, which you can deduct, must be made timely. How to amend 2012 taxes See Time limits for contributing funds , later. How to amend 2012 taxes Salary reduction contributions. How to amend 2012 taxes   The amount the employee chooses to have you contribute to a SIMPLE IRA on his or her behalf cannot be more than $12,000 for 2013 and 2014. How to amend 2012 taxes These contributions must be expressed as a percentage of the employee's compensation unless you permit the employee to express them as a specific dollar amount. How to amend 2012 taxes You cannot place restrictions on the contribution amount (such as limiting the contribution percentage), except to comply with the $12,000 limit. How to amend 2012 taxes   If you or an employee participates in any other qualified plan during the year and you or your employee have salary reduction contributions (elective deferrals) under those plans, the salary reduction contributions under a SIMPLE IRA plan also count toward the overall annual limit ($17,500 for 2013 and 2014) on exclusion of salary reduction contributions and other elective deferrals. How to amend 2012 taxes Catch-up contributions. How to amend 2012 taxes   A SIMPLE IRA plan can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. How to amend 2012 taxes The catch-up contribution limit for 2013 and 2014 for SIMPLE IRA plans is $2,500. How to amend 2012 taxes Salary reduction contributions are not treated as catch-up contributions for 2013 or 2014 until they exceed $12,000. How to amend 2012 taxes However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. How to amend 2012 taxes The catch-up contribution limit. How to amend 2012 taxes The excess of the participant's compensation over the salary reduction contributions that are not catch-up contributions. How to amend 2012 taxes Employer matching contributions. How to amend 2012 taxes   You are generally required to match each employee's salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee's compensation. How to amend 2012 taxes This requirement does not apply if you make nonelective contributions as discussed later. How to amend 2012 taxes Example. How to amend 2012 taxes In 2013, your employee, John Rose, earned $25,000 and chose to defer 5% of his salary. How to amend 2012 taxes Your net earnings from self-employment are $40,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. How to amend 2012 taxes You make 3% matching contributions. How to amend 2012 taxes The total contribution you make for John is $2,000, figured as follows. How to amend 2012 taxes Salary reduction contributions ($25,000 × . How to amend 2012 taxes 05) $1,250 Employer matching contribution ($25,000 × . How to amend 2012 taxes 03) 750 Total contributions $2,000     The total contribution you make for yourself is $5,200, figured as follows. How to amend 2012 taxes Salary reduction contributions ($40,000 × . How to amend 2012 taxes 10) $4,000 Employer matching contribution ($40,000 × . How to amend 2012 taxes 03) 1,200 Total contributions $5,200 Lower percentage. How to amend 2012 taxes   If you choose a matching contribution less than 3%, the percentage must be at least 1%. How to amend 2012 taxes You must notify the employees of the lower match within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. How to amend 2012 taxes You cannot choose a percentage less than 3% for more than 2 years during the 5-year period that ends with (and includes) the year for which the choice is effective. How to amend 2012 taxes Nonelective contributions. How to amend 2012 taxes   Instead of matching contributions, you can choose to make nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 (or some lower amount you select) of compensation from you for the year. How to amend 2012 taxes If you make this choice, you must make nonelective contributions whether or not the employee chooses to make salary reduction contributions. How to amend 2012 taxes Only $255,000 of the employee's compensation can be taken into account to figure the contribution limit in 2013 ($260,000 in 2014). How to amend 2012 taxes   If you choose this 2% contribution formula, you must notify the employees within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. How to amend 2012 taxes Example 1. How to amend 2012 taxes In 2013, your employee, Jane Wood, earned $36,000 and chose to have you contribute 10% of her salary. How to amend 2012 taxes Your net earnings from self-employment are $50,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. How to amend 2012 taxes You make a 2% nonelective contribution. How to amend 2012 taxes Both of you are under age 50. How to amend 2012 taxes The total contribution you make for Jane is $4,320, figured as follows. How to amend 2012 taxes Salary reduction contributions ($36,000 × . How to amend 2012 taxes 10) $3,600 2% nonelective contributions ($36,000 × . How to amend 2012 taxes 02) 720 Total contributions $4,320     The total contribution you make for yourself is $6,000, figured as follows. How to amend 2012 taxes Salary reduction contributions ($50,000 × . How to amend 2012 taxes 10) $5,000 2% nonelective contributions ($50,000 × . How to amend 2012 taxes 02) 1,000 Total contributions $6,000 Example 2. How to amend 2012 taxes Using the same facts as in Example 1, above, the maximum contribution you make for Jane or for yourself if you each earned $75,000 is $13,500, figured as follows. How to amend 2012 taxes Salary reduction contributions (maximum amount allowed) $12,000 2% nonelective contributions ($75,000 × . How to amend 2012 taxes 02) 1,500 Total contributions $13,500 Time limits for contributing funds. How to amend 2012 taxes   You must make the salary reduction contributions to the SIMPLE IRA within 30 days after the end of the month in which the amounts would otherwise have been payable to the employee in cash. How to amend 2012 taxes You must make matching contributions or nonelective contributions by the due date (including extensions) for filing your federal income tax return for the year. How to amend 2012 taxes Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions. How to amend 2012 taxes When To Deduct Contributions You can deduct SIMPLE IRA contributions in the tax year within which the calendar year for which contributions were made ends. How to amend 2012 taxes You can deduct contributions for a particular tax year if they are made for that tax year and are made by the due date (including extensions) of your federal income tax return for that year. How to amend 2012 taxes Example 1. How to amend 2012 taxes Your tax year is the fiscal year ending June 30. How to amend 2012 taxes Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2013 before July 1, 2013) are deductible in the tax year ending June 30, 2014. How to amend 2012 taxes Example 2. How to amend 2012 taxes You are a sole proprietor whose tax year is the calendar year. How to amend 2012 taxes Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2014 by April 15, 2014) are deductible in the 2013 tax year. How to amend 2012 taxes Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. How to amend 2012 taxes 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. How to amend 2012 taxes Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. How to amend 2012 taxes (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you receive from the partnership. How to amend 2012 taxes ) Tax Treatment of Contributions You can deduct your contributions and your employees can exclude these contributions from their gross income. How to amend 2012 taxes SIMPLE IRA plan contributions are not subject to federal income tax withholding. How to amend 2012 taxes However, salary reduction contributions are subject to social security, Medicare, and federal unemployment (FUTA) taxes. How to amend 2012 taxes Matching and nonelective contributions are not subject to these taxes. How to amend 2012 taxes Reporting on Form W-2. How to amend 2012 taxes   Do not include SIMPLE IRA plan contributions in the “Wages, tips, other compensation” box of Form W-2. How to amend 2012 taxes You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. How to amend 2012 taxes You must also include them in box 12. How to amend 2012 taxes Mark the “Retirement plan” checkbox in box 13. How to amend 2012 taxes For more information, see the Form W-2 instructions. How to amend 2012 taxes Distributions (Withdrawals) Distributions from a SIMPLE IRA are subject to IRA rules and generally are includible in income for the year received. How to amend 2012 taxes Tax-free rollovers can be made from one SIMPLE IRA into another SIMPLE IRA. How to amend 2012 taxes However, a rollover from a SIMPLE IRA to a non-SIMPLE IRA can be made tax free only after a 2-year participation in the SIMPLE IRA plan. How to amend 2012 taxes Generally, you or your employee must begin to receive distributions from a SIMPLE IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 70½. How to amend 2012 taxes Early withdrawals generally are subject to a 10% additional tax. How to amend 2012 taxes However, the additional tax is increased to 25% if funds are withdrawn within 2 years of beginning participation. How to amend 2012 taxes More information. How to amend 2012 taxes   See Publication 590 for information about IRA rules, including those on the tax treatment of distributions, rollovers, required distributions, and income tax withholding. How to amend 2012 taxes More Information on SIMPLE IRA Plans If you need help to set up or maintain a SIMPLE IRA plan, go to the IRS website and search SIMPLE IRA Plan. How to amend 2012 taxes SIMPLE 401(k) Plan You can adopt a SIMPLE plan as part of a 401(k) plan if you meet the 100-employee limit as discussed earlier under SIMPLE IRA Plan. How to amend 2012 taxes A SIMPLE 401(k) plan is a qualified retirement plan and generally must satisfy the rules discussed under Qualification Rules in chapter 4, including the required distribution rules. How to amend 2012 taxes However, a SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy rules discussed in chapter 4 if the plan meets the conditions listed below. How to amend 2012 taxes Under the plan, an employee can choose to have you make salary reduction contributions for the year to a trust in an amount expressed as a percentage of the employee's compensation, but not more than $12,000 for 2013 and 2014. How to amend 2012 taxes If permitted under the plan, an employee who is age 50 or over can also make a catch-up contribution of up to $2,500 for 2013 and 2014. How to amend 2012 taxes See Catch-up contributions , earlier under Contribution Limits. How to amend 2012 taxes You must make either: Matching contributions up to 3% of compensation for the year, or Nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 of compensation from you for the year. How to amend 2012 taxes No other contributions can be made to the trust. How to amend 2012 taxes No contributions are made, and no benefits accrue, for services during the year under any other qualified retirement plan sponsored by you on behalf of any employee eligible to participate in the SIMPLE 401(k) plan. How to amend 2012 taxes The employee's rights to any contributions are nonforfeitable. How to amend 2012 taxes No more than $255,000 of the employee's compensation can be taken into account in figuring matching contributions and nonelective contributions in 2013 ($260,000 in 2014). How to amend 2012 taxes Compensation is defined earlier in this chapter. How to amend 2012 taxes Employee notification. How to amend 2012 taxes   The notification requirement that applies to SIMPLE IRA plans also applies to SIMPLE 401(k) plans. How to amend 2012 taxes See Notification Requirement in this chapter. How to amend 2012 taxes Credit for startup costs. How to amend 2012 taxes   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE 401(k) plan that first became effective in 2013. How to amend 2012 taxes For more information, see Credit for startup costs under Reminders, earlier. How to amend 2012 taxes Note on Forms. How to amend 2012 taxes   Please note that Forms 5304-SIMPLE and 5305-SIMPLE can not be used to establish a SIMPLE 401(k) plan. How to amend 2012 taxes To set up a SIMPLE 401(k) plan, see Adopting a Written Plan in chapter 4. How to amend 2012 taxes Prev  Up  Next   Home   More Online Publications