Form 1099-R Mandated Close of Corporate Pension

[lovetaxes]

Does the 10% Penalty on Early Withdrawal still apply if the Corporation mandated withdrawal of ALL pension funds for all employees? The fund was 100% paid for by the Corporation.

[IRonMaN]

They could have rolled it over.  But then again, if it was COVID related you might be exempt from the penalty.  Forms 5329 and 8915E could be your friends.

[lovetaxes · Accepted solution]

Many thanks IRonMaN, Ironically, I had another client already that is using Form 8915-E and spreading out the tax over 3 years. I believe I can use the same technique but pay the tax in 2020. As long as this takes the 10% penalty away everyone should be happy.

Very much appreciate your very quick response. Have a great tax season and a long vacation this summer.

Bob

lovetaxes

[IRonMaN]

You betcha!