401k hasty withdrawal?
I took out an early renunciation from my 401k when i quit my job within 11-2006. The amount was for $2, 500.00. I needed the money to support me and my two children until I could find another opportunity. Now I am getting ready to do this years taxes and I contacted Merrill Lynch who processed the check and be told by my rep that this is a "non-reporting" 401k. In short the do not process a 1099R form for me. She says what happen is my former employers' accountant supposedly processes the amount as income for me and I claim it as income on my taxes. Is this true? I have never hear of anything like this and I own no paperwork to verify any of this except a copy of the check I received from Merrill Lynch stating this was a 401K disbursement. Nothing to right to be heard I already paid a 20% rates on the money I received either. I don't know what to do from here and if I clutch this info to an accountant how will I be able to verify the facts? Any back is appreciated.
Answers: the situation you describe is one where Merrill Lynch simply act as the custodian of the assets. Your employer has another company surrounded by the mix that acts as the Third Party Administrator. You mention the accountant so they are acting within this capacity. This firm would cart care of adjectives of the filings including the preparation of the 1099-R. You need to contact your ex-employer and share them that you did not receive a 1099-R. There is a penalty for dud to provide a 1099-R but it's minor (only $50). Ask them to send you one via overnight correspondence.
You still have to allege this income...and you are supposed to attach the 1099-R to your filing so what you necessitate to do is call the irs record information line at 1-8OO-829-4477 and when prompted you want the info from portion 154. The number and section is from the instruction on the 1040 if you want to verify.
you dont hold the other half of the check?..i did equal thing and own the other half of the check to show what i did earnings
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Answers: the situation you describe is one where Merrill Lynch simply act as the custodian of the assets. Your employer has another company surrounded by the mix that acts as the Third Party Administrator. You mention the accountant so they are acting within this capacity. This firm would cart care of adjectives of the filings including the preparation of the 1099-R. You need to contact your ex-employer and share them that you did not receive a 1099-R. There is a penalty for dud to provide a 1099-R but it's minor (only $50). Ask them to send you one via overnight correspondence.
You still have to allege this income...and you are supposed to attach the 1099-R to your filing so what you necessitate to do is call the irs record information line at 1-8OO-829-4477 and when prompted you want the info from portion 154. The number and section is from the instruction on the 1040 if you want to verify.
you dont hold the other half of the check?..i did equal thing and own the other half of the check to show what i did earnings