Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

How To Fill Out The 1040ez

H & R Block Free File OnlineIrs Free Efile2008 Tax Return2012.taxhowFree 1040ez 2014Amended Tax ReturnsIrs Tax Forms For 20121040ez TelefileHow To File My 2012 Tax ReturnHrblockForm To Amend Tax ReturnFile A Tax Extension Online1040 Ez FormIrs 2012 TaxesHow To File A Tax AmendmentH And R Block OnlineNeed To File 2012 Tax ReturnsTax Act 2011 FreeFreestatetaxfiling2010 Tax Tables FederalCan I File 2012 Taxes In 20131040ez FormsIncome Tax Extension DeadlineIrs Gov Freefile State Taxes2009 Free Tax SoftwareForm 1040ez BookletIndividual Income Tax Return Resident 2012 N111040 Ez Forms And InstructionsOnline Tax Forms 1040ezFree Tax Forms 2011Go 2011 Taxes 2013Amended Federal Tax ReturnFree State Tax Return E-fileTax Act 2012 Login Return UserIrs Form 1040xWww Hrblock ComEarned Income Tax CreditTax Return Amendment FormFree E File 2012 Federal And StateTaxact2010

How To Fill Out The 1040ez

How to fill out the 1040ez Part Two -   Excise Taxes Other Than Fuel Taxes Table of Contents 3. How to fill out the 1040ez   Environmental TaxesOil Spill Liability Tax ODCs Imported Taxable Products Floor Stocks Tax 4. How to fill out the 1040ez   Communications and Air Transportation TaxesUncollected Tax Report Communications TaxLocal-only service. How to fill out the 1040ez Private communication service. How to fill out the 1040ez Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes 5. How to fill out the 1040ez   Manufacturers TaxesImporter. How to fill out the 1040ez Use considered sale. How to fill out the 1040ez Lease considered sale. How to fill out the 1040ez Bonus goods. How to fill out the 1040ez Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. How to fill out the 1040ez Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. How to fill out the 1040ez CoalExported. How to fill out the 1040ez Taxable TiresQualifying intercity or local bus. How to fill out the 1040ez Qualifying school bus. How to fill out the 1040ez Gas Guzzler TaxVehicles not subject to tax. How to fill out the 1040ez Imported automobiles. How to fill out the 1040ez VaccinesConditions to allowance. How to fill out the 1040ez Taxable Medical Devices 6. How to fill out the 1040ez   Retail Tax on Heavy Trucks, Trailers, and TractorsHighway vehicle. How to fill out the 1040ez Vehicles not considered highway vehicles. How to fill out the 1040ez Idling reduction device. How to fill out the 1040ez Separate purchase. How to fill out the 1040ez Leases. How to fill out the 1040ez Exported vehicle. How to fill out the 1040ez Tax on resale of tax-paid trailers and semitrailers. How to fill out the 1040ez Use treated as sale. How to fill out the 1040ez Sale. How to fill out the 1040ez Long-term lease. How to fill out the 1040ez Short-term lease. How to fill out the 1040ez Related person. How to fill out the 1040ez Exclusions from tax base. How to fill out the 1040ez Sales not at arm's length. How to fill out the 1040ez Installment sales. How to fill out the 1040ez Repairs and modifications. How to fill out the 1040ez Further manufacture. How to fill out the 1040ez Rail trailers and rail vans. How to fill out the 1040ez Parts and accessories. How to fill out the 1040ez Trash containers. How to fill out the 1040ez House trailers. How to fill out the 1040ez Camper coaches or bodies for self-propelled mobile homes. How to fill out the 1040ez Farm feed, seed, and fertilizer equipment. How to fill out the 1040ez Ambulances and hearses. How to fill out the 1040ez Truck-tractors. How to fill out the 1040ez Concrete mixers. How to fill out the 1040ez Registration requirement. How to fill out the 1040ez Further manufacture. How to fill out the 1040ez 7. How to fill out the 1040ez   Ship Passenger Tax 8. How to fill out the 1040ez   Foreign Insurance TaxesPremium. How to fill out the 1040ez 9. How to fill out the 1040ez   Obligations Not in Registered Form 10. How to fill out the 1040ez   Indoor Tanning Services Tax 11. How to fill out the 1040ez   Patient-Centered Outcomes Research Fee Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

IRS Extends Tax Relief to Some New Jersey and New York Victims of Hurricane Sandy; Return Filing and Tax Payment Deadline Extended to April 1, 2013

IRS YouTube Videos
Help for Disaster Victims: English | Spanish | ASL
How to Request a Copy of Your Tax Return: English | ASL

Podcast
Disaster Assistance: English | Spanish

IR-2013-16, Feb. 1, 2013

WASHINGTON –– In the aftermath of Hurricane Sandy, the Internal Revenue Service announced additional tax relief to affected individuals and businesses. The IRS today is further extending tax deadlines of that relief until April 1 for the following localities:

  • In New Jersey (starting Oct. 26): Monmouth and Ocean counties.
  • In New York (starting Oct. 27): Nassau, Queens, Richmond and Suffolk counties.

Beyond the relief provided by law to taxpayers in the FEMA-designated counties, the IRS will work with any taxpayer who resides outside the disaster area but whose books, records or tax professional are located in the areas affected by Hurricane Sandy. All workers assisting the relief activities in the covered disaster areas who are affiliated with a recognized government or philanthropic organization are eligible for relief. Taxpayers who live outside of the impacted area and think they may qualify for this relief need to contact the IRS at 866-562-5227.

The IRS also announced today that Taxpayer Assistance Centers in several New York and New Jersey locations will be open additional hours to provide help to taxpayers impacted by Hurricane Sandy. There will also be special assistance available at several New Jersey and New York locations on Saturday, February 23 from 9 a.m. until 2 p.m. More information will be available on irs.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting in late October. As a result, affected individuals and businesses will have until April 1, 2013, to file these returns and pay any taxes due. This includes the fourth quarter individual estimated tax payment, normally due Jan. 15, 2013. It also includes payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on Oct. 31, 2012 and Jan. 31, 2013 respectively, and calendar year corporate income tax returns due March 15. It also applies to tax-exempt organizations required to file Form 990 series returns with an original or extended deadline falling during this period.  

The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply. The IRS automatically provides this relief to any taxpayer located in the disaster area. Taxpayers need not contact the IRS to get this relief.

The tax relief is part of a coordinated federal response to the damage caused by the hurricane and is based on local damage assessments by FEMA. For information on disaster recovery, individuals should visit disasterassistance.gov

Follow the IRS on New Media
Subscribe to IRS Newswire

Page Last Reviewed or Updated: 05-Nov-2013

The How To Fill Out The 1040ez

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