Pension Plan Trust ends and is Distributed: how to report

Apr 18, 2006 1 Replies

The company for which I worked decided to end its pension plan ("Defined Benefit Plan and Trust") so they distributed the money. I received a distribution: where do I put that? As 'other income" on line 21 of the 1040? And what do I do



-- if anything -- with the Fed. taxes taken out (as cited on the 1099-R): just ignore them, or deduct them from the gross amount that I report? Thought I was going to get this done on time but, alas, forgot about this one piece of paperwork :) Thank you, people: I know it must be a busy day.



HarryTruman



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If you're still within 60 days of the distribution, you can roll it into an IRA account and not have any current tax effect. If the date on the check is more than 60 days ago then you'll need to include in income and pay penalties if you're under age 59.5 yrs. It's not line 21 but line 16, if you owe the penalty, see line 60. You may get some relief if you're affected by Hurricane Katrina.

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