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Tax Forms 2007

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Tax Forms 2007

Tax forms 2007 Index A Abusive tax shelters (see Tax shelters) Accounting fees, Attorney or accounting fees. Tax forms 2007 Accrual method, Accrual method taxpayers. Tax forms 2007 , Accrual method. Tax forms 2007 , Holders must use accrual method. Tax forms 2007 , When To Deduct Investment Interest Accuracy-related penalty, Accuracy-related penalty. Tax forms 2007 Acquisition discount, Government obligations. Tax forms 2007 , Acquisition discount on short-term obligations. Tax forms 2007 Adjusted basis, Basis adjustment. Tax forms 2007 , Fair market value equal to or more than donor's adjusted basis. Tax forms 2007 , Adjusted Basis, Short sales. Tax forms 2007 Alaska Permanent Fund dividends, Alaska Permanent Fund dividends. Tax forms 2007 , Child's Alaska Permanent Fund dividends. Tax forms 2007 Amortization of bond premium, Bond Premium Amortization, Bonds acquired after October 22, 1986, but before 1988. Tax forms 2007 Annuities Borrowing on, Borrowing on insurance. Tax forms 2007 Interest on, Interest on annuity contract. Tax forms 2007 Life insurance proceeds used to buy, Annuity. Tax forms 2007 Sale of, Sale of Annuity Single-premium, Single-premium life insurance, endowment, and annuity contracts. Tax forms 2007 Trade for, Trade of investment property for an annuity. Tax forms 2007 , Insurance Policies and Annuities Applicable federal rate, Applicable federal rate. Tax forms 2007 Appreciated financial positions, Constructive Sales of Appreciated Financial Positions Arbitrage bonds, Arbitrage bonds. Tax forms 2007 Assistance (see Tax help) At-risk rules, At-risk rules. Tax forms 2007 , At-risk rules. Tax forms 2007 Attorneys' fees, Attorney or accounting fees. Tax forms 2007 Automatic investment service, Automatic investment service and dividend reinvestment plans. Tax forms 2007 , Automatic investment service. Tax forms 2007 , Automatic investment service. Tax forms 2007 Average basis, Average Basis Double-category method, Transition rule from double-category method. Tax forms 2007 Illustrated, Average basis method illustrated. Tax forms 2007 B Backup withholding, Backup withholding. Tax forms 2007 Bad debts, Nonbusiness bad debt. Tax forms 2007 , Nonbusiness Bad Debts Bankrupt financial institutions Deposit in, Deposit in Insolvent or Bankrupt Financial Institution Bargain purchases, Bargain purchases. Tax forms 2007 Basis, Basis of Investment Property, U. Tax forms 2007 S. Tax forms 2007 Treasury Notes or Bonds Adjusted, Basis adjustment. Tax forms 2007 , Fair market value equal to or more than donor's adjusted basis. Tax forms 2007 , Adjusted Basis, Short sales. Tax forms 2007 Average, Average Basis Cost, Cost Basis, Cost Basis Inherited property, Property Received as Inheritance Investment property, Basis of Investment Property Like-kind exchanges, Basis of property received. Tax forms 2007 Other than cost, Basis Other Than Cost REITs, Shares in a mutual fund or REIT. Tax forms 2007 REMIC, residual interest, Basis in the residual interest. Tax forms 2007 Replacement stock, Basis of replacement stock. Tax forms 2007 Shares acquired by reinvestment, Reinvestment right. Tax forms 2007 Stocks and bonds, Basis adjustment. Tax forms 2007 , Basis. Tax forms 2007 , Basis. Tax forms 2007 , Stocks and Bonds Bearer obligations, Bearer CDs. Tax forms 2007 , Bearer Obligations Below-market loans, Below-Market Loans Bonds Accrued interest on, Accrued interest on bonds. Tax forms 2007 Amortization of premium, Bond Premium Amortization Arbitrage, Arbitrage bonds. Tax forms 2007 Basis, Basis. Tax forms 2007 , Stocks and Bonds Capital asset, Stocks, stock rights, and bonds. Tax forms 2007 Convertible, Convertible stocks and bonds. Tax forms 2007 Coupon, Coupon bonds. Tax forms 2007 Enterprise zone facility, Enterprise zone facility bonds. Tax forms 2007 Federally guaranteed, Federally guaranteed bonds. Tax forms 2007 Identification, Identifying stock or bonds sold. Tax forms 2007 Market discount, Market discount. Tax forms 2007 , Limit on interest deduction for market discount bonds. Tax forms 2007 , Market discount on bonds. Tax forms 2007 , Market discount bonds. Tax forms 2007 , Market discount bonds. Tax forms 2007 New York Liberty bonds, New York Liberty bonds. Tax forms 2007 Par value, Bonds purchased at par value. Tax forms 2007 Premiums on, Bond premium. Tax forms 2007 , Premiums on bonds. Tax forms 2007 Private activity, Private activity bonds. Tax forms 2007 Redemption or retirement of, Redemption or retirement of bonds. Tax forms 2007 Sold between interest dates, Bonds Sold Between Interest Dates State and local government, Tax-exempt state and local government bonds. Tax forms 2007 Stripped, Stripped bonds or coupons. Tax forms 2007 , Stripped Bonds and Coupons, Stripped tax-exempt obligation. Tax forms 2007 Tax credit bonds, Tax credit bonds. Tax forms 2007 Tax-exempt, Tax-exempt state and local government bonds. Tax forms 2007 Traded flat, Bonds traded flat. Tax forms 2007 U. Tax forms 2007 S. Tax forms 2007 savings (see U. Tax forms 2007 S. Tax forms 2007 savings bonds) U. Tax forms 2007 S. Tax forms 2007 Treasury (see U. Tax forms 2007 S. Tax forms 2007 Treasury bills, notes, and bonds) Brokerage fees, Fees to buy or sell. Tax forms 2007 , Sale expenses. Tax forms 2007 C Calls and puts, Puts and Calls Table 4-3, Table 4-3. Tax forms 2007 Puts and Calls Capital assets, Capital Assets and Noncapital Assets Capital gain distributions, Capital Gain Distributions, Basis adjustment. Tax forms 2007 , Capital gain distributions. Tax forms 2007 , Child's capital gain distributions. Tax forms 2007 , Capital gain distributions received. Tax forms 2007 Capital gains and losses, Capital Gains and Losses, Loss on stock that paid qualified dividends. Tax forms 2007 Constructive ownership transactions, Gains From Certain Constructive Ownership Transactions Definition, Capital or Ordinary Gain or Loss Empowerment zone assets, Exclusion of Gain From DC Zone Assets Investment property, Investment property. Tax forms 2007 Long-term, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. Tax forms 2007 Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). Tax forms 2007 Losses, limit on, Limit on deduction. Tax forms 2007 Passive activities, Passive activity gains and losses. Tax forms 2007 Qualified covered call options, Capital loss on qualified covered call options. Tax forms 2007 Qualified small business stock, Gains on Qualified Small Business Stock Reporting requirements, How To Report Gains and Losses (Form 6781), How to report gain. Tax forms 2007 Rollover of gain from sale of securities, Rollover of Gain From Publicly Traded Securities Short-term, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. Tax forms 2007 Tax rates, Capital Gain Tax Rates, Table 4-4. Tax forms 2007 What Is Your Maximum Capital Gain Rate? Table 4-4, Table 4-4. Tax forms 2007 What Is Your Maximum Capital Gain Rate? Capital loss carryover, Capital loss carryover. Tax forms 2007 , Capital Losses Worksheet 4-1, Worksheet 4-1. Tax forms 2007 Capital Loss Carryover Worksheet Cash method, Cash method taxpayers. Tax forms 2007 , Cash method. Tax forms 2007 , When To Deduct Investment Interest Reporting options for savings bond interest, Reporting options for cash method taxpayers. Tax forms 2007 Cash-settled options, Cash-settled options. Tax forms 2007 Casualty losses, Ordinary loss or casualty loss. Tax forms 2007 CDOs (Collateralized debt obligations), Collateralized Debt Obligations (CDOs) Certificates of deposit (CDs), Certificates of Deposit (CDs) Children Alaska Permanent Fund dividends, Child's Alaska Permanent Fund dividends. Tax forms 2007 Capital gain distributions, Child's capital gain distributions. Tax forms 2007 Custodian account for, Custodian account for your child. Tax forms 2007 Gifts to, Income from property given to a child. Tax forms 2007 Investment income of, Tax on unearned income of certain children. Tax forms 2007 , Investment income of child reported on parent's return. Tax forms 2007 Qualified dividends, Child's qualified dividends. Tax forms 2007 Savings account with parent as trustee, Savings account with parent as trustee. Tax forms 2007 U. Tax forms 2007 S. Tax forms 2007 savings bond owner, Child as only owner. Tax forms 2007 Clerical help, Clerical help and office rent. Tax forms 2007 Co-owners of U. Tax forms 2007 S. Tax forms 2007 savings bonds, Co-owners. Tax forms 2007 Collateralized debt obligations (CDOs), Collateralized Debt Obligations (CDOs) Collectibles, Collectibles gain or loss. Tax forms 2007 Commissions, Commissions and load charges. Tax forms 2007 Commodity futures, Commodity Futures, Commodity futures. Tax forms 2007 Community property U. Tax forms 2007 S. Tax forms 2007 savings bonds, Community property. Tax forms 2007 Constructive ownership transactions, Constructive ownership of stock. Tax forms 2007 , Gains From Certain Constructive Ownership Transactions Constructive receipt, Constructive receipt. Tax forms 2007 Constructive sales, Constructive Sales of Appreciated Financial Positions Contractors, insolvency of, Insolvency of contractor. Tax forms 2007 Conversion transactions, Conversion Transactions Convertible stocks and bonds, Convertible stocks and bonds. Tax forms 2007 Cooperatives, sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Corporate distributions, Dividends and Other Distributions Capital gain, Capital gain distributions. Tax forms 2007 , Child's capital gain distributions. Tax forms 2007 , Capital gain distributions received. Tax forms 2007 Constructive, Constructive distributions. Tax forms 2007 Dividends (see Dividends) Fractional shares, Fractional shares. Tax forms 2007 Liquidating, Liquidating Distributions, Liquidating distributions. Tax forms 2007 Nondividend, Nondividend Distributions, Nondividend distributions. Tax forms 2007 Return of capital, Basis adjustment. Tax forms 2007 Stock rights, Distributions of Stock and Stock Rights Undistributed capital gains, Undistributed capital gains of mutual funds and REITs. Tax forms 2007 Corporate reorganizations, Corporate reorganizations. Tax forms 2007 Cost basis, Cost Basis, Cost Basis Coupon bonds, Coupon bonds. Tax forms 2007 D Day traders, Special Rules for Traders in Securities Dealer equity options, Dealer equity option. Tax forms 2007 Dealer securities futures contracts, Dealer securities futures contract. Tax forms 2007 Debt instruments, retirement of, Retirement of debt instrument. Tax forms 2007 Decedents, Appreciated property you gave the decedent. Tax forms 2007 , Decedent's capital loss. Tax forms 2007 U. Tax forms 2007 S. Tax forms 2007 savings bond interest, reporting of, Decedents. Tax forms 2007 Demutualization, Demutualization of Life Insurance Companies Deposits, loss on, Deposit in Insolvent or Bankrupt Financial Institution Discount on debt instruments, Discount on Debt Instruments Certificates of deposit, Certificates of Deposit (CDs) Election to report all interest as OID, Election To Report All Interest as OID Face-amount certificates, Face-Amount Certificates Gain or loss treatment, Discounted Debt Instruments Inflation-indexed, Inflation-Indexed Debt Instruments Market discount bonds (see Market discount bonds) Original issue discount (see Original issue discount (OID)) Short-term obligations, Discount on Short-Term Obligations, Short-term government obligations. Tax forms 2007 Stripped bonds and coupons, Stripped Bonds and Coupons Discounted debt instruments, Discount on Debt Instruments Discounted tax-exempt obligations, Discounted tax-exempt obligations. Tax forms 2007 Dividends, Dividends and Other Distributions, Form 1099-DIV. Tax forms 2007 (see also Form 1099-DIV) Alaska Permanent Fund, Alaska Permanent Fund dividends. Tax forms 2007 , Child's Alaska Permanent Fund dividends. Tax forms 2007 Exempt-interest, Exempt-interest dividends. Tax forms 2007 , Exempt-interest dividends. Tax forms 2007 , Exempt-interest dividends on mutual fund stock. Tax forms 2007 Extraordinary, Extraordinary dividends. Tax forms 2007 Holding period, Holding period. Tax forms 2007 Insurance policies, Dividends on insurance policies. Tax forms 2007 Money market funds, Money Market Funds Nominees, Nominees. Tax forms 2007 , Nominees. Tax forms 2007 Ordinary, Ordinary Dividends Patronage, Patronage dividends. Tax forms 2007 Payments in lieu of, Payments in lieu of dividends. Tax forms 2007 Qualified, Qualified Dividends, Qualified dividends. Tax forms 2007 , Child's qualified dividends. Tax forms 2007 Qualified foreign corporation, Qualified foreign corporation. Tax forms 2007 Received in January, Dividends received in January. Tax forms 2007 Reinvestment of, Reinvested distributions. Tax forms 2007 Reinvestment plans, Dividends Used To Buy More Stock, Automatic investment service and dividend reinvestment plans. Tax forms 2007 , Dividend reinvestment plans. Tax forms 2007 Reporting requirements, Form 1099-DIV. Tax forms 2007 , How To Report Dividend Income, Stripped Preferred Stock Restricted stock, Dividends received on restricted stock. Tax forms 2007 Sale or trade vs. Tax forms 2007 , Dividend versus sale or trade. Tax forms 2007 Scrip, Scrip dividends. Tax forms 2007 Sold stock, Dividends on stock sold. Tax forms 2007 Stock, Stock dividends. Tax forms 2007 , Stock dividends. Tax forms 2007 Underreported, Underreported interest and dividends. Tax forms 2007 Veterans' insurance, Interest on VA dividends. Tax forms 2007 , Dividends on veterans' insurance. Tax forms 2007 Divorce, Property Received From Your Spouse, Transfers Between Spouses E Education Savings Bond Program, Education Savings Bond Program Interest excluded under, Interest excluded under the Education Savings Bond Program. Tax forms 2007 Recordkeeping requirements, Education Savings Bond Program Employee stock options, Reminders Employee stock ownership plans (ESOPs), sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Employer identification numbers (EINs), Identifying number. Tax forms 2007 Empowerment zone, Exclusion of Gain From DC Zone Assets Endowment contracts, Single-premium life insurance, endowment, and annuity contracts. Tax forms 2007 Enterprise zone facility bonds, Enterprise zone facility bonds. Tax forms 2007 Equity option, Equity option. Tax forms 2007 Estate income received by beneficiary, Beneficiary of an estate or trust. Tax forms 2007 Exchanges of mutual fund shares, Exchange of Shares In One Mutual Fund For Shares In Another Mutual Fund Exclusion of gain DC zone assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends on mutual fund stock, Exempt-interest dividends on mutual fund stock. Tax forms 2007 Expenses of producing income, Expenses of Producing Income F Face-amount certificates, Face-Amount Certificates Fair market value, Fair market value. Tax forms 2007 , Fair market value less than donor's adjusted basis. Tax forms 2007 , Fair market value. Tax forms 2007 Federal guarantee on bonds, Federally guaranteed bonds. Tax forms 2007 Fees to buy or sell, Fees to buy or sell. Tax forms 2007 Financial asset securitization investment trusts (FASITs), FASITs First-in first-out (FIFO), First-in first-out (FIFO). Tax forms 2007 Foreign currency transactions, Foreign currency contract. Tax forms 2007 Foreign income, Reminders Form 1040, Form 1040. Tax forms 2007 , Form 1040A or Form 1040. Tax forms 2007 Form 1040, Schedule B, Schedule B (Form 1040A or 1040). Tax forms 2007 Form 1040, Schedule D, How to report gain. Tax forms 2007 Form 1040A, Form 1040A. Tax forms 2007 Form 1040X, Filing a claim for refund. Tax forms 2007 Form 1041, Filing requirement. Tax forms 2007 Form 1065, Filing requirement. Tax forms 2007 Schedule K-1, Schedule K-1 (Form 1065). Tax forms 2007 Form 1066, Schedule Q, Schedule Q (Form 1066). Tax forms 2007 , Investment expenses from pass-through entities. Tax forms 2007 Form 1096, File Form 1099-INT with the IRS. Tax forms 2007 , File Form 1099-DIV with the IRS. Tax forms 2007 , File Form 1099-B or Form 1099-S with the IRS. Tax forms 2007 Form 1099-B, Form 1099-B. Tax forms 2007 , Form 1099-B transactions. Tax forms 2007 , File Form 1099-B or Form 1099-S with the IRS. Tax forms 2007 Form 1099-CAP, Form 1099-CAP transactions. Tax forms 2007 Form 1099-DIV, General Information, Form 1099-DIV. Tax forms 2007 , Form 1099-DIV. Tax forms 2007 , File Form 1099-DIV with the IRS. Tax forms 2007 Form 1099-INT, General Information, Form 1099-INT. Tax forms 2007 , Form 1099-INT for U. Tax forms 2007 S. Tax forms 2007 savings bond interest. Tax forms 2007 , Form 1099-INT. Tax forms 2007 , File Form 1099-INT with the IRS. Tax forms 2007 , Forms 1099-INT and 1099-OID. Tax forms 2007 , Forms 1099-INT and 1099-OID. Tax forms 2007 Form 1099-MISC, Form 1099-MISC. Tax forms 2007 , Reporting Substitute Payments Form 1099-OID, Form 1099-OID. Tax forms 2007 , Form 1099-OID, Form 1099-OID. Tax forms 2007 , Forms 1099-INT and 1099-OID. Tax forms 2007 , Forms 1099-INT and 1099-OID. Tax forms 2007 Form 1099-S, Form 1099-S transactions. Tax forms 2007 , File Form 1099-B or Form 1099-S with the IRS. Tax forms 2007 Form 1120, Filing requirement. Tax forms 2007 Form 2439, Undistributed capital gains of mutual funds and REITs. Tax forms 2007 Form 3115, Change from method 2. Tax forms 2007 , Choosing To Amortize, How To Make the Mark-to-Market Election Form 4684, Ordinary loss or casualty loss. Tax forms 2007 Form 4797, How to report. Tax forms 2007 , Losses on Section 1244 (Small Business) Stock, How to report. Tax forms 2007 Form 4952, Form 4952 Form 6198, At-risk rules. Tax forms 2007 Form 6781, Form 6781. Tax forms 2007 , How to report. Tax forms 2007 , How To Report Gains and Losses (Form 6781), Section 1256 contracts and straddles. Tax forms 2007 Form 8275, Negligence or disregard of rules or regulations. Tax forms 2007 Form 8275-R, Negligence or disregard of rules or regulations. Tax forms 2007 Form 8582, Form 8582. Tax forms 2007 Form 8615, Tax on unearned income of certain children. Tax forms 2007 Form 8815, Form 8815. Tax forms 2007 , Figuring the interest part of the proceeds (Form 8815, line 6). Tax forms 2007 , Interest excluded under the Education Savings Bond Program. Tax forms 2007 Form 8824, How to report. Tax forms 2007 Form 8832, Clubs formed before 1997. Tax forms 2007 Form 8886, Reportable Transaction Disclosure Statement, Negligence or disregard of rules or regulations. Tax forms 2007 Form 8949 Bad debts, How to report bad debts. Tax forms 2007 Basis adjustment, Basis adjustment. Tax forms 2007 Capital Gains, Reporting Capital Gains and Losses Capital Losses, Reporting Capital Gains and Losses Cooperative, sale to certain, Sales of Stock to ESOPs or Certain Cooperatives Copyrights in musical works, Capital asset treatment for self-created musical works. Tax forms 2007 Employee stock ownership plan, sale to, Sales of Stock to ESOPs or Certain Cooperatives Empowerment Zone Assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends, Exempt-interest dividends on mutual fund stock. Tax forms 2007 Form 1099-B, Form 1099-B. Tax forms 2007 , Form 1099-B transactions. Tax forms 2007 Form 1099-CAP, Form 1099-CAP transactions. Tax forms 2007 Form 1099-S, Form 1099-S transactions. Tax forms 2007 Fractional shares, Fractional shares. Tax forms 2007 Gain, qualified small business stock, How to report gain. Tax forms 2007 How to fill in, generally, Reporting Capital Gains and Losses Long-term gains and losses, Long-term gains and losses. Tax forms 2007 Marked-to-market election, Mark-to-market election made. Tax forms 2007 Market discount bonds, Market discount bonds. Tax forms 2007 , Market discount bonds. Tax forms 2007 Musical compositions, Capital asset treatment for self-created musical works. Tax forms 2007 Nominees, Nominees. Tax forms 2007 Nonbusiness bad debt, Nonbusiness bad debt. Tax forms 2007 Nondividend distributions, Nondividend distributions. Tax forms 2007 Option, How to report. Tax forms 2007 Property bought at various times, Sale of property bought at various times. Tax forms 2007 Rollover, publicly traded securities, Rollover of Gain From Publicly Traded Securities Rollover, qualified small business stock, How to report gain. Tax forms 2007 Sale expenses, Sale expenses. Tax forms 2007 Short-term gains and losses, Short-term gains and losses. Tax forms 2007 Software, Stocks and Bonds Worthless securities, How to report loss. Tax forms 2007 Form SS-4, Identifying number. Tax forms 2007 Form W-8BEN, Nonresident aliens. Tax forms 2007 Form W-9, Certification. Tax forms 2007 Fractional shares, Fractional shares. Tax forms 2007 , Automatic investment service. Tax forms 2007 Free tax services, Free help with your tax return. Tax forms 2007 Frozen deposits, Interest income on frozen deposits. Tax forms 2007 , Frozen deposits. Tax forms 2007 Futures contracts Regulated, Regulated futures contract. Tax forms 2007 Securities, Securities futures contract. Tax forms 2007 , Securities futures contract to sell. Tax forms 2007 , Securities Futures Contracts Futures, commodity, Commodity Futures, Commodity futures. Tax forms 2007 Wash sales, Options and futures contracts. Tax forms 2007 G Gains on qualified small business stock, Gains on Qualified Small Business Stock Gains on sales or trades, How To Figure Gain or Loss, Gain on Sale or Trade of Depreciable Property, Property received from a related party. Tax forms 2007 (see also Capital gains and losses) Gifts, What's New, Income from property given to a child. Tax forms 2007 , Property Received as a Gift, Property received as a gift. Tax forms 2007 Gifts of shares, Shares received as gift. Tax forms 2007 Government obligations, Government obligations. Tax forms 2007 H Hedging transactions, Hedging exception. Tax forms 2007 , Hedging Transactions, Hedging transaction. Tax forms 2007 Help (see Tax help) Holding period Investment property, Holding Period Replacement stock, Holding period of replacement stock. Tax forms 2007 Shares acquired by reinvestment, Reinvested distributions. Tax forms 2007 Straddles, Holding Period and Loss Treatment Rules I Income from sources outside U. Tax forms 2007 S. Tax forms 2007 , Reminders Income tax treaties (Table 1-3), Qualified Dividends Indian tribal government, Indian tribal government. Tax forms 2007 Individual retirement arrangements (IRAs) Interest income, Individual retirement arrangements (IRAs). Tax forms 2007 Inflation-indexed debt instruments, Inflation-Indexed Debt Instruments, Stripped inflation-indexed debt instruments. Tax forms 2007 Inherited property Basis, Property Received as Inheritance Holding period, Inherited property. Tax forms 2007 Transfer by inheritance, Transfer by inheritance. Tax forms 2007 Insolvency of contractors, Insolvency of contractor. Tax forms 2007 Installment sales, Installment sales. Tax forms 2007 Insurance Borrowing on, Borrowing on insurance. Tax forms 2007 Dividends, interest on, Interest on insurance dividends. Tax forms 2007 , Dividends on insurance policies. Tax forms 2007 Interest option on, Interest option on insurance. Tax forms 2007 Life insurance companies, demutualization, Demutualization of Life Insurance Companies Life, paid to beneficiary, Insurance Prepaid premiums, Prepaid insurance premiums. Tax forms 2007 Single-premium life, Single-premium life insurance, endowment, and annuity contracts. Tax forms 2007 Trades, Insurance Policies and Annuities Veterans' dividends, interest on, Interest on VA dividends. Tax forms 2007 , Dividends on veterans' insurance. Tax forms 2007 Interest expenses Allocation of, Allocation of Interest Expense Investment interest, Investment Interest Limit on, Limit on interest deduction for market discount bonds. Tax forms 2007 , Limit on Deduction When to deduct, When To Deduct Investment Interest Margin accounts, Interest on margin accounts. Tax forms 2007 Paid in advance, Interest paid in advance. Tax forms 2007 Straddles, Interest expense and carrying charges on straddles. Tax forms 2007 Interest income, Interest Income Annuity contracts, Interest on annuity contract. Tax forms 2007 Bonds traded flat, Bonds traded flat. Tax forms 2007 Certificates of deposits, Certificates of deposit and other deferred interest accounts. Tax forms 2007 Condemnation awards, Interest on condemnation award. Tax forms 2007 Deferred interest accounts, Certificates of deposit and other deferred interest accounts. Tax forms 2007 Dividends on deposit or share accounts, Dividends that are actually interest. Tax forms 2007 Frozen deposits, Interest income on frozen deposits. Tax forms 2007 , Frozen deposits. Tax forms 2007 Gift for opening account, Gift for opening account. Tax forms 2007 Individual retirement arrangements (IRAs), Individual retirement arrangements (IRAs). Tax forms 2007 Installment sale payments, Installment sale payments. Tax forms 2007 Insurance dividends, Interest on insurance dividends. Tax forms 2007 Money market funds, Money market funds. Tax forms 2007 Nominee distributions, Nominees. Tax forms 2007 Prepaid insurance premiums, Prepaid insurance premiums. Tax forms 2007 Reporting, When To Report Interest Income, Penalty on early withdrawal of savings. Tax forms 2007 Seller-financed mortgage, Form 1040A. Tax forms 2007 , Interest on seller-financed mortgage. Tax forms 2007 Tax refunds, Interest on tax refunds. Tax forms 2007 Tax-exempt, Tax-Exempt Interest, Reporting tax-exempt interest. Tax forms 2007 Taxable, Taxable Interest — General, Bonds traded flat. Tax forms 2007 , Taxation of interest. Tax forms 2007 , Taxable Interest U. Tax forms 2007 S. Tax forms 2007 savings bonds, person responsible for tax (Table 1-2), Table 1-2. Tax forms 2007 Who Pays the Tax on U. Tax forms 2007 S. Tax forms 2007 Savings Bond Interest Underreported, Underreported interest and dividends. Tax forms 2007 Unstated, Unstated interest. Tax forms 2007 Usurious interest, Usurious interest. Tax forms 2007 VA insurance dividends, Interest on VA dividends. Tax forms 2007 Investment clubs, Investment Clubs, Filing requirement. Tax forms 2007 Investment counsel and advice, Investment counsel and advice. Tax forms 2007 Investment expenses, Investment Expenses Allocated, Allocated investment expenses. Tax forms 2007 At-risk rules, At-risk rules. Tax forms 2007 Deductible, Expenses of Producing Income Interest, Investment interest deducted. Tax forms 2007 Limits on deductions, Limits on Deductions Nondeductible, Nondeductible Expenses Pass-through entities, Investment expenses from pass-through entities. Tax forms 2007 Reporting requirements, How To Report Investment Expenses Investment income, Investment Income Children, Tax on unearned income of certain children. Tax forms 2007 , Investment income of child reported on parent's return. Tax forms 2007 General Information, General Information Net income, Net Investment Income Records to keep, General Information Reporting of (Table 1-1), Table 1-1. Tax forms 2007 Where To Report Common Types of Investment Income Investment property, Investment property. Tax forms 2007 Basis, Basis of Investment Property Definition, Investment property. Tax forms 2007 Gain or loss treatment, Investment property. Tax forms 2007 Gift, received as, Property Received as a Gift Holding period, Holding Period Liquidation, received in, Investment property received in liquidation. Tax forms 2007 Nontaxable trades, received in, Property Received in Nontaxable Trades Sales and trades, Sales and Trades of Investment Property Services, received for, Property Received for Services Spouse, received from, Property Received From Your Spouse Taxable trades, received in, Property Received in Taxable Trades J Joint accounts, Joint accounts. Tax forms 2007 Joint and separate returns, Joint return. Tax forms 2007 , Joint and separate returns. Tax forms 2007 L Life insurance companies demutualization, Demutualization of Life Insurance Companies Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Basis of property received, Basis of property received. Tax forms 2007 Reporting requirements, How to report. Tax forms 2007 Liquidating distributions, Liquidating Distributions, Investment property received in liquidation. Tax forms 2007 Listed options, Listed option. Tax forms 2007 Load charges, Commissions and load charges. Tax forms 2007 Loans Below-market, Below-Market Loans, Effective dates. Tax forms 2007 Gift and demand, Gift and demand loans. Tax forms 2007 Guarantees, Loan guarantees. Tax forms 2007 Term, Term loans. Tax forms 2007 Local government obligations (see State or local government obligations) Long-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. Tax forms 2007 Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). Tax forms 2007 Losses on sales or trades, Property received from a related party. Tax forms 2007 (see also Capital gains and losses) Amount calculation, How To Figure Gain or Loss Carryback election, Loss carryback election. Tax forms 2007 , Loss carryback election. Tax forms 2007 Mutual fund or REIT stock held 6 months or less, Loss on mutual fund or REIT stock held 6 months or less. Tax forms 2007 Passive activities, Passive activity losses. Tax forms 2007 , Passive activity losses. Tax forms 2007 , Passive activity losses and credits. Tax forms 2007 , Losses from passive activities. Tax forms 2007 Related parties, Losses on Sales or Trades of Property Section 1244 (small business) stock, Losses on Section 1244 (Small Business) Stock Small business investment company stock, Losses on Small Business Investment Company Stock Wash sales, Coordination of Loss Deferral Rules and Wash Sale Rules M Mark-to-market election, Mark-to-market election made. Tax forms 2007 Marked-to-market rules, Marked-to-Market Rules, Mark-to-market election made. Tax forms 2007 Market discount bonds, Market discount. Tax forms 2007 , Market Discount Bonds, Partial principal payments. Tax forms 2007 , Limit on interest deduction for market discount bonds. Tax forms 2007 , Market discount on bonds. Tax forms 2007 , Market discount bonds. Tax forms 2007 , Market discount bonds. Tax forms 2007 Accrued market discount, Accrued market discount. Tax forms 2007 Maximum rate of capital gains (Table 4-4), Table 4-4. Tax forms 2007 What Is Your Maximum Capital Gain Rate? Mechanics' and suppliers' liens, Mechanics' and suppliers' liens. Tax forms 2007 Meetings, expenses of attending, Stockholders' meetings. Tax forms 2007 Missing children, photographs of, Reminders Mixed straddles, Mixed straddles. Tax forms 2007 , Mixed straddles. Tax forms 2007 Money market funds, Money Market Funds Interest income, Money market funds. Tax forms 2007 Mortgages Revenue bonds, Mortgage revenue bonds. Tax forms 2007 Secondary liability on home, Secondary liability on home mortgage. Tax forms 2007 Seller-financed, Interest on seller-financed mortgage. Tax forms 2007 Municipal bonds, State or Local Government Obligations, Reporting tax-exempt interest. Tax forms 2007 , Tax-exempt state and local government bonds. Tax forms 2007 (see also State or local government obligations) Mutual funds, Capital Gain Distributions, Other income (nonpassive income). Tax forms 2007 , Choosing to include net capital gain. Tax forms 2007 , Including mutual fund or REMIC expenses in income. Tax forms 2007 , Shares in a mutual fund or REIT. Tax forms 2007 , Special Rules for Mutual Funds, Loss on mutual fund or REIT stock held 6 months or less. Tax forms 2007 Individual retirement arrangements (IRAs), Qualified retirement plans and IRAs. Tax forms 2007 publicly offered, Publicly-offered mutual funds. Tax forms 2007 N Net Investment Income Tax, What's New, Net investment income tax (NIIT). Tax forms 2007 New York Liberty bonds, New York Liberty bonds. Tax forms 2007 NIIT, What's New, Net investment income tax (NIIT). Tax forms 2007 Nominee distributions Dividends, Nominees. Tax forms 2007 , Nominees. Tax forms 2007 Interest income, Nominees. Tax forms 2007 , Nominee distributions. Tax forms 2007 Original issue discount, Nominee. Tax forms 2007 Nonbusiness bad debts, Nonbusiness bad debt. Tax forms 2007 , Nonbusiness Bad Debts Noncapital assets, Capital Assets and Noncapital Assets Nondeductible investment expenses, Nondeductible Expenses Nondividend distributions, Nondividend Distributions Nonequity options, Nonequity option. Tax forms 2007 Nonqualified preferred stock, Nonqualified preferred stock. Tax forms 2007 Nonresident aliens Backup withholding, Nonresident aliens. Tax forms 2007 Nontaxable return of capital, Basis adjustment. Tax forms 2007 Nontaxable stock rights, Nontaxable stock rights. Tax forms 2007 Nontaxable trades, Nontaxable Trades, Nontaxable trades. Tax forms 2007 Notes Individuals, bought at discount, Notes of individuals. Tax forms 2007 U. Tax forms 2007 S. Tax forms 2007 Treasury (see U. Tax forms 2007 S. Tax forms 2007 Treasury bills, notes, and bonds) O Office expenses, Clerical help and office rent. Tax forms 2007 Options, Options Calls and puts, Puts and Calls Cash settlement, Cash-settled options. Tax forms 2007 , Cash settlement option. Tax forms 2007 Dealer equity, Dealer equity option. Tax forms 2007 Deep-in-the-money, Qualified covered call options and optioned stock. Tax forms 2007 Employee stock, Reminders Equity, Equity option. Tax forms 2007 Gain or loss, Options, Qualified covered call options and optioned stock. Tax forms 2007 Holding period, Option exercised. Tax forms 2007 Listed, Listed option. Tax forms 2007 Nonequity, Nonequity option. Tax forms 2007 Qualified covered call, Qualified covered call options and optioned stock. Tax forms 2007 Reporting requirements, How to report. Tax forms 2007 Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contract options. Tax forms 2007 Wash sales, Options and futures contracts. Tax forms 2007 Ordinary gains and losses, Capital or Ordinary Gain or Loss, Ordinary loss or casualty loss. Tax forms 2007 Original issue discount (OID), Original issue discount. Tax forms 2007 , Original Issue Discount (OID), Stripped tax-exempt obligations. Tax forms 2007 , Original issue discount (OID) on debt instruments. Tax forms 2007 Adjustment to, Original issue discount (OID) adjustment. Tax forms 2007 Reporting requirements, Exceptions to reporting OID. Tax forms 2007 , Form 1099-OID Rules, Applying the OID Rules P Pass-through entities Rollover of gain, Pass-through entity. Tax forms 2007 Passive activities Gains and losses, Passive activity losses. Tax forms 2007 , Passive activity losses. Tax forms 2007 , Passive activity losses and credits. Tax forms 2007 , Losses from passive activities. Tax forms 2007 , Passive activity gains and losses. Tax forms 2007 Patronage dividends, Patronage dividends. Tax forms 2007 Penalties Accuracy-related, Accuracy-related penalty. Tax forms 2007 , Accuracy-related penalties. Tax forms 2007 Backup withholding, Penalties. Tax forms 2007 Civil fraud, Civil fraud penalty. Tax forms 2007 Early withdrawal, Interest subject to penalty for early withdrawal. Tax forms 2007 , Penalty on early withdrawal of savings. Tax forms 2007 Failure to pay tax, Failure to pay tax. Tax forms 2007 Failure to supply SSN, Penalty for failure to supply SSN. Tax forms 2007 Substantial understatement, Substantial understatement of tax. Tax forms 2007 Valuation misstatement, Substantial valuation misstatement. Tax forms 2007 Political parties Debts owed by, Debts owed by political parties. Tax forms 2007 Preferred stock Nonqualified, Nonqualified preferred stock. Tax forms 2007 Redeemable at a premium, Preferred stock redeemable at a premium. Tax forms 2007 Stripped, Stripped Preferred Stock Premiums on bonds, Bond premium. Tax forms 2007 , Premiums on bonds. Tax forms 2007 Private activity bonds, Private activity bonds. Tax forms 2007 Public utility stock reinvestment, Public utilities. Tax forms 2007 Publications (see Tax help) Puts and calls, Puts and Calls Table 4-3, Table 4-3. Tax forms 2007 Puts and Calls Q Qualified dividends, Qualified dividends. Tax forms 2007 Qualified small business stock, Qualified small business stock. Tax forms 2007 , Qualified small business stock. Tax forms 2007 , Gains on Qualified Small Business Stock Gains on, Gains on Qualified Small Business Stock R Real estate investment trusts (REITs), Undistributed capital gains of mutual funds and REITs. Tax forms 2007 , Shares in a mutual fund or REIT. Tax forms 2007 , Loss on mutual fund or REIT stock held 6 months or less. Tax forms 2007 Real estate mortgage investment conduits (REMICs), REMICs, Expenses. Tax forms 2007 , Including mutual fund or REMIC expenses in income. Tax forms 2007 Regular interest, Regular Interest Residual interest, Residual Interest, Residual interests in a REMIC. Tax forms 2007 Recordkeeping requirements Education Savings Bond Program, Education Savings Bond Program Investment income, General Information Small business stock, Losses on Section 1244 (Small Business) Stock Redemption of stock, Redemption of stock. Tax forms 2007 Redemption or retirement of bonds, Redemption or retirement of bonds. Tax forms 2007 Regulated futures contract, Regulated futures contract. Tax forms 2007 Reinvestment rights, Commissions and load charges. Tax forms 2007 REITs (see Real estate investment trusts (REITs)) Related party transactions, Unpaid expenses owed to related party. Tax forms 2007 , Related Party Transactions, Property received from a related party. Tax forms 2007 Related persons, Related persons. Tax forms 2007 REMICs (see Real estate mortgage investment conduits (REMICs)) Reorganizations, corporate, Corporate reorganizations. Tax forms 2007 Reporting requirements Bad debts, How to report bad debts. Tax forms 2007 Bond premium amortization, How To Report Amortization Capital gains and losses, How To Report Gains and Losses (Form 6781), How to report gain. Tax forms 2007 , Reporting Capital Gains and Losses Dividend income, How To Report Dividend Income Exempt-interest dividends, Information reporting requirement. Tax forms 2007 Interest on U. Tax forms 2007 S. Tax forms 2007 savings bonds, Reporting options for cash method taxpayers. Tax forms 2007 , Choice to report interest each year. Tax forms 2007 Investment expenses, How To Report Investment Expenses Like-kind exchanges, How to report. Tax forms 2007 Options, How to report. Tax forms 2007 Original issue discount, Form 1099-OID S corporation income, deductions, and credits, Reporting S corporation income, deductions, and credits. Tax forms 2007 Section 1256 contracts, How To Report State or local government obligations, Information reporting requirement. Tax forms 2007 Straddles, Section 1256 contracts and straddles. Tax forms 2007 Substitute payments, Reporting Substitute Payments Tax-exempt interest income, Reporting tax-exempt interest. Tax forms 2007 Trades, How To Report Repossession of real property, Real property repossessed. Tax forms 2007 Restricted property, Restricted property. Tax forms 2007 Restricted stock, Dividends received on restricted stock. Tax forms 2007 Retirement of debt instrument, Retirement of debt instrument. Tax forms 2007 Return of capital (see Nondividend distributions) Revocable trust, trustee's commissions for, Trustee's commissions for revocable trust. Tax forms 2007 Rollover of gain from sale Securities, Rollover of Gain From Publicly Traded Securities, Rollover of Gain S S corporations, S Corporations, S corporation stock. Tax forms 2007 Safe deposit box, Safe deposit box rent. Tax forms 2007 Sales and trades of investment property, Sales and Trades of Investment Property Definition, What Is a Sale or Trade? Savings bonds (see U. Tax forms 2007 S. Tax forms 2007 savings bonds) SBIC stock (see Small business investment company stock) Scrip dividends, Scrip dividends. Tax forms 2007 Section 1202 gain, Section 1202 Exclusion, Gain on qualified small business stock. Tax forms 2007 Section 1244 stock, Losses on Section 1244 (Small Business) Stock Section 1250 gain, Unrecaptured section 1250 gain. Tax forms 2007 Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contracts. Tax forms 2007 , Section 1256 contract options. Tax forms 2007 , Section 1256 contracts and straddles. Tax forms 2007 Net gain on, Net section 1256 contracts gain. Tax forms 2007 Net loss on, Net section 1256 contracts loss. Tax forms 2007 Reporting requirements, How To Report Securities Holding period, Holding Period Installment sales, Installment sales. Tax forms 2007 Lost, stolen, etc. Tax forms 2007 , cost of replacing, Cost of replacing missing securities. Tax forms 2007 Rollover of gain from sale, Rollover of Gain From Publicly Traded Securities, Rollover of Gain Traders in, Special Rules for Traders in Securities Worthless, Worthless Securities, Worthless securities. Tax forms 2007 Securities futures contracts, Dealer securities futures contract. Tax forms 2007 , Securities futures contract. Tax forms 2007 , Securities Futures Contracts Self-employment income, Self-Employment Income Self-employment tax, Self-employment tax. Tax forms 2007 Seller-financed mortgages, Interest on seller-financed mortgage. Tax forms 2007 Short sales, Short Sales, Extraordinary dividends. Tax forms 2007 Adjusted basis, Short sales. Tax forms 2007 Expenses of, Short-sale expenses. Tax forms 2007 Extraordinary dividends, Extraordinary dividends. Tax forms 2007 Puts, Put option as short sale. Tax forms 2007 Small business investment company stock, Short sale. Tax forms 2007 Short-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. Tax forms 2007 Short-term obligations, Discount on Short-Term Obligations, Choosing to include accrued discount and other interest in current income. Tax forms 2007 , Acquisition discount on short-term obligations. Tax forms 2007 , Short-term government obligations. Tax forms 2007 Interest deduction, limit on, Limit on interest deduction for short-term obligations. Tax forms 2007 Sixty/forty (60/40) rule, 60/40 rule. Tax forms 2007 Small business investment company stock, Losses on Small Business Investment Company Stock, SSBIC stock. Tax forms 2007 Reporting requirements, How to report. Tax forms 2007 Small business stock, Qualified small business stock. Tax forms 2007 , Losses on Section 1244 (Small Business) Stock, Qualified small business stock. Tax forms 2007 , Gains on Qualified Small Business Stock Social security number (SSN) Custodial accounts, Custodian account for your child. Tax forms 2007 Joint accounts, SSN for joint account. Tax forms 2007 Requirement to give, Social security number (SSN). Tax forms 2007 Specialized small business investment company stock, Specialized small business investment company stock or partnership interest. Tax forms 2007 , SSBIC stock. Tax forms 2007 Spouses Transfers between, Property Received From Your Spouse, Transfers Between Spouses (see also Related party transactions) State or local government obligations, State or Local Government Obligations, Taxable Interest Market discount bonds (see Market discount bonds) Private activity bonds, Private activity bonds. Tax forms 2007 Registration requirement, Registration requirement. Tax forms 2007 Tax-exempt interest, Tax-Exempt Interest Taxable interest, Taxable Interest Stock Basis, Basis adjustment. Tax forms 2007 , Basis adjustment. Tax forms 2007 , Basis. Tax forms 2007 , Stocks and Bonds, Basis of replacement stock. Tax forms 2007 Capital asset, Stocks, stock rights, and bonds. Tax forms 2007 Constructive ownership, Constructive ownership of stock. Tax forms 2007 Convertible, Convertible stocks and bonds. Tax forms 2007 Corporate, Corporate Stocks Dividends (see Dividends) Fractional shares, Fractional shares. Tax forms 2007 , Automatic investment service. Tax forms 2007 Identification, Identifying stock or bonds sold. Tax forms 2007 Installment sales, Installment sales. Tax forms 2007 Nonqualified preferred stock, Nonqualified preferred stock. Tax forms 2007 Options for employees, Reminders Public utility, reinvestment, Public utilities. Tax forms 2007 Redemption of, Redemption of stock. Tax forms 2007 Replacement stock, Basis of replacement stock. Tax forms 2007 Restricted stock, Dividends received on restricted stock. Tax forms 2007 Rights, Distributions of Stock and Stock Rights, Stock rights. Tax forms 2007 , Nontaxable stock rights. Tax forms 2007 S corporations, S corporation stock. Tax forms 2007 Sales to ESOPs or cooperatives, Sales of Stock to ESOPs or Certain Cooperatives Small business, Qualified small business stock. Tax forms 2007 , Qualified small business stock. Tax forms 2007 Specialized small business investment company, Specialized small business investment company stock or partnership interest. Tax forms 2007 Splits, Stock splits. Tax forms 2007 Straddles (see Straddles) Stripped preferred stock, Stripped Preferred Stock Surrender of, Surrender of stock. Tax forms 2007 Trades, Stock for stock of the same corporation. Tax forms 2007 Trust instruments treated as, Certain trust instruments treated as stock. Tax forms 2007 Straddles, Straddles, Interest expense and carrying charges relating to mixed straddle account positions. Tax forms 2007 Holding period, Holding Period and Loss Treatment Rules Interest expense and carrying charges, Interest expense and carrying charges on straddles. Tax forms 2007 Loss deferral rules, Loss Deferral Rules Mixed, Mixed straddles. Tax forms 2007 , Mixed straddles. Tax forms 2007 , Mixed Straddle Elections Reporting requirements, Section 1256 contracts and straddles. Tax forms 2007 Stripped bonds and coupons, Stripped bonds or coupons. Tax forms 2007 , Stripped Bonds and Coupons, Stripped tax-exempt obligation. Tax forms 2007 Stripped preferred stock, Stripped Preferred Stock Substitute payments, Reporting Substitute Payments T Tables Capital gains maximum rate (Table 4-4), Table 4-4. Tax forms 2007 What Is Your Maximum Capital Gain Rate? Income tax treaties (Table 1-3), Qualified Dividends Investment income, reporting of (Table 1-1), Table 1-1. Tax forms 2007 Where To Report Common Types of Investment Income Puts and calls (Table 4-3), Table 4-3. Tax forms 2007 Puts and Calls U. Tax forms 2007 S. Tax forms 2007 savings bonds, person responsible for tax (Table 1-2), Table 1-2. Tax forms 2007 Who Pays the Tax on U. Tax forms 2007 S. Tax forms 2007 Savings Bond Interest Tax credit bonds, Tax credit bonds. Tax forms 2007 Tax help, How To Get Tax Help Tax rates, What's New Capital gain and losses, Capital Gain Tax Rates Tax refunds Interest on, Interest on tax refunds. Tax forms 2007 Tax shelters, Tax Shelters and Other Reportable Transactions, Whether To Invest Penalties, Penalties Reporting requirements, Investor Reporting Rules to curb abuse, Rules To Curb Abusive Tax Shelters Tax-exempt bonds, Tax-exempt state and local government bonds. Tax forms 2007 Tax-exempt income Expenses of, Tax-exempt income. Tax forms 2007 Interest, Tax-Exempt Interest, Reporting tax-exempt interest. Tax forms 2007 Tax-exempt obligations, Tax-Exempt Interest, Stripped tax-exempt obligations. Tax forms 2007 , Discounted tax-exempt obligations. Tax forms 2007 Taxable income, expenses of, Expenses for both tax-exempt and taxable income. Tax forms 2007 Taxes State and local transfer, State and local transfer taxes. Tax forms 2007 State income, State income taxes. Tax forms 2007 Term loans, Term loans. Tax forms 2007 Trade or business, Passive activity. Tax forms 2007 Traders in securities, Special Rules for Traders in Securities Trades Insurance, Insurance Policies and Annuities Investment property, Sales and Trades of Investment Property Like-kind, Like-Kind Exchanges, Like-Kind Exchanges Nontaxable, Property Received in Nontaxable Trades, Nontaxable Trades, Nontaxable trades. Tax forms 2007 Reporting requirements, How To Report Stock, Stock for stock of the same corporation. Tax forms 2007 Taxable, Property Received in Taxable Trades U. Tax forms 2007 S. Tax forms 2007 Treasury notes or bonds, U. Tax forms 2007 S. Tax forms 2007 Treasury Notes or Bonds Treasury bills, notes, and bonds (see U. Tax forms 2007 S. Tax forms 2007 Treasury bills, notes, and bonds) Treasury inflation-indexed securities, Inflation-Indexed Debt Instruments Treasury inflation-protected securities (TIPS), Treasury inflation-protected securities (TIPS). Tax forms 2007 , Inflation-Indexed Debt Instruments Treaties, income tax (Table 1-3), Qualified Dividends Trust income received by beneficiary, Beneficiary of an estate or trust. Tax forms 2007 Trustee's commission for revocable trust, Trustee's commissions for revocable trust. Tax forms 2007 U U. Tax forms 2007 S. Tax forms 2007 savings bonds, U. Tax forms 2007 S. Tax forms 2007 obligations. Tax forms 2007 , U. Tax forms 2007 S. Tax forms 2007 Savings Bonds Reporting interest on, U. Tax forms 2007 S. Tax forms 2007 obligations. Tax forms 2007 , U. Tax forms 2007 S. Tax forms 2007 Savings Bonds Retirement or profit-sharing plan, distributed from, Savings bonds distributed from a retirement or profit-sharing plan. Tax forms 2007 Worksheet, Worksheet for savings bonds distributed from a retirement or profit-sharing plan. Tax forms 2007 Tax, responsible person (Table 1-2), Table 1-2. Tax forms 2007 Who Pays the Tax on U. Tax forms 2007 S. Tax forms 2007 Savings Bond Interest U. Tax forms 2007 S. Tax forms 2007 Treasury bills, notes, and bonds, U. Tax forms 2007 S. Tax forms 2007 obligations. Tax forms 2007 , U. Tax forms 2007 S. Tax forms 2007 Treasury Bills, Notes, and Bonds, U. Tax forms 2007 S. Tax forms 2007 Treasury Notes or Bonds, U. Tax forms 2007 S. Tax forms 2007 Treasury notes and bonds. Tax forms 2007 Undistributed capital gains, Undistributed capital gains. Tax forms 2007 Usurious interest, Usurious interest. Tax forms 2007 V Veterans' insurance Dividends on, Dividends on veterans' insurance. Tax forms 2007 W Warrants, Warrants. Tax forms 2007 Wash sales, Wash Sales, Securities Futures Contracts Holding period, Wash sales. Tax forms 2007 Loss deferral rules, straddles, Coordination of Loss Deferral Rules and Wash Sale Rules Withholding, backup, Backup withholding. Tax forms 2007 Worksheets Capital loss carryover, Worksheet 4-1. Tax forms 2007 Capital Loss Carryover Worksheet Worthless securities, Worthless Securities, Worthless securities. Tax forms 2007 Prev  Up     Home   More Online Publications
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Know the Facts

When you borrow money to buy a car or truck, the lender can take your vehicle back if you miss a payment or in some other way violate the contract. You should also be aware that the lender:

  • Can repossess with cause without advance notice;
  • Can insist you pay off the entire loan balance in order to get the repossessed vehicle back;
  • Can sell the vehicle at auction;
  • Might be able to sue you for the difference between the vehicle's auction price and what you owe
  • Cannot break into your home or physically threaten someone while taking the vehicle

If you know you're going to be late with a payment, talk to the lender to try to work things out. If you and the lender reach an agreement, be sure you get the agreement in writing. Contact your state or local consumer protection office to find out whether your state gives you any additional rights.

Beware of Car Title Loans

Chances are you have seen or heard an ad for a car title loan to help you make ends meet. In a title loan, a consumer in need of quick cash uses the car title as collateral for a short term loan. No job or postdated checks are required. Sounds simple enough, right? Wrong.

What the title lenders don't say in their ads is that you have to turn over your car title and keys when you get the loan. They'll loan you a small fraction of the car value at sky high interest rates- as much as 25% for one month (300% APR) !!! At the end of the month you are expected to pay the whole amount back, plus the interest.

If you can't pay the loan there are only two options. You could roll the loan over for another month, with more fees and interest. However, as the loan amount increases, it becomes almost impossible to repay the debt. The other option is for the lender to repossess your car. Unfortunately, there is no federal regulation of title loans now, but some states have put some rules in place to regulate the interest charged by these lenders.

The Tax Forms 2007

Tax forms 2007 4. Tax forms 2007   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. Tax forms 2007 Loan secured by benefits. Tax forms 2007 Waiver of survivor benefits. Tax forms 2007 Waiver of 30-day waiting period before annuity starting date. Tax forms 2007 Involuntary cash-out of benefits not more than dollar limit. Tax forms 2007 Exception for certain loans. Tax forms 2007 Exception for QDRO. Tax forms 2007 SIMPLE and safe harbor 401(k) plan exception. Tax forms 2007 Setting Up a Qualified PlanAdopting a Written Plan Investing Plan Assets Minimum Funding RequirementDue dates. Tax forms 2007 Installment percentage. Tax forms 2007 Extended period for making contributions. Tax forms 2007 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. Tax forms 2007 Caution: Form 5500-EZ not required. Tax forms 2007 Form 5500. Tax forms 2007 Electronic filing of Forms 5500 and 5500-SF. Tax forms 2007 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. Tax forms 2007 dol. Tax forms 2007 gov/ebsa/pdf/2013-5500. Tax forms 2007 pdf www. Tax forms 2007 dol. Tax forms 2007 gov/ebsa/pdf/2013-5500-SF. Tax forms 2007 pdf W-2 Wage and Tax Statement Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Tax forms 2007 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Tax forms 2007 1040 U. Tax forms 2007 S. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 R. Tax forms 2007 10 plans. Tax forms 2007 A sole proprietor or a partnership can set up one of these plans. Tax forms 2007 A common-law employee or a partner cannot set up one of these plans. Tax forms 2007 The plans described here can also be set up and maintained by employers that are corporations. Tax forms 2007 All the rules discussed here apply to corporations except where specifically limited to the self-employed. Tax forms 2007 The plan must be for the exclusive benefit of employees or their beneficiaries. Tax forms 2007 These qualified plans can include coverage for a self-employed individual. Tax forms 2007 As an employer, you can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. Tax forms 2007 The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. Tax forms 2007 Kinds of Plans There are two basic kinds of qualified plans—defined contribution plans and defined benefit plans—and different rules apply to each. Tax forms 2007 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. Tax forms 2007 Defined Contribution Plan A defined contribution plan provides an individual account for each participant in the plan. Tax forms 2007 It provides benefits to a participant largely based on the amount contributed to that participant's account. Tax forms 2007 Benefits are also affected by any income, expenses, gains, losses, and forfeitures of other accounts that may be allocated to an account. Tax forms 2007 A defined contribution plan can be either a profit-sharing plan or a money purchase pension plan. Tax forms 2007 Profit-sharing plan. Tax forms 2007   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). Tax forms 2007 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. Tax forms 2007 An employer may even make no contribution to the plan for a given year. Tax forms 2007   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. Tax forms 2007   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). Tax forms 2007 Money purchase pension plan. Tax forms 2007   Contributions to a money purchase pension plan are fixed and are not based on your business profits. Tax forms 2007 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. Tax forms 2007 This applies even though the compensation of a self-employed individual as a participant is based on earned income derived from business profits. Tax forms 2007 Defined Benefit Plan A defined benefit plan is any plan that is not a defined contribution plan. Tax forms 2007 Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. Tax forms 2007 Actuarial assumptions and computations are required to figure these contributions. Tax forms 2007 Generally, you will need continuing professional help to have a defined benefit plan. Tax forms 2007 Qualification Rules To qualify for the tax benefits available to qualified plans, a plan must meet certain requirements (qualification rules) of the tax law. Tax forms 2007 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. Tax forms 2007 The following is a brief overview of important qualification rules that generally have not yet been discussed. Tax forms 2007 It is not intended to be all-inclusive. Tax forms 2007 See Setting Up a Qualified Plan , later. Tax forms 2007 Generally, the following qualification rules also apply to a SIMPLE 401(k) retirement plan. Tax forms 2007 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. Tax forms 2007 Plan assets must not be diverted. Tax forms 2007   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. Tax forms 2007 As a general rule, the assets cannot be diverted to the employer. Tax forms 2007 Minimum coverage requirement must be met. Tax forms 2007   To be a qualified plan, a defined benefit plan must benefit at least the lesser of the following. Tax forms 2007 50 employees, or The greater of: 40% of all employees, or Two employees. Tax forms 2007 If there is only one employee, the plan must benefit that employee. Tax forms 2007 Contributions or benefits must not discriminate. Tax forms 2007   Under the plan, contributions or benefits to be provided must not discriminate in favor of highly compensated employees. Tax forms 2007 Contributions and benefits must not be more than certain limits. Tax forms 2007   Your plan must not provide for contributions or benefits that are more than certain limits. Tax forms 2007 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. Tax forms 2007 These limits are discussed later in this chapter under Contributions. Tax forms 2007 Minimum vesting standard must be met. Tax forms 2007   Your plan must satisfy certain requirements regarding when benefits vest. Tax forms 2007 A benefit is vested (you have a fixed right to it) when it becomes nonforfeitable. Tax forms 2007 A benefit is nonforfeitable if it cannot be lost upon the happening, or failure to happen, of any event. Tax forms 2007 Special rules apply to forfeited benefit amounts. Tax forms 2007 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. Tax forms 2007   Forfeitures under a defined benefit plan cannot be used to increase the benefits any employee would otherwise receive under the plan. Tax forms 2007 Forfeitures must be used instead to reduce employer contributions. Tax forms 2007 Participation. Tax forms 2007   In general, an employee must be allowed to participate in your plan if he or she meets both the following requirements. Tax forms 2007 Has reached age 21. Tax forms 2007 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). Tax forms 2007 A plan cannot exclude an employee because he or she has reached a specified age. Tax forms 2007 Leased employee. Tax forms 2007   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. Tax forms 2007 These rules include those in all the following areas. Tax forms 2007 Nondiscrimination in coverage, contributions, and benefits. Tax forms 2007 Minimum age and service requirements. Tax forms 2007 Vesting. Tax forms 2007 Limits on contributions and benefits. Tax forms 2007 Top-heavy plan requirements. Tax forms 2007 Contributions or benefits provided by the leasing organization for services performed for you are treated as provided by you. Tax forms 2007 Benefit payment must begin when required. Tax forms 2007   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. Tax forms 2007 The plan year in which the participant reaches the earlier of age 65 or the normal retirement age specified in the plan. Tax forms 2007 The plan year in which the 10th anniversary of the year in which the participant began participating in the plan occurs. Tax forms 2007 The plan year in which the participant separates from service. Tax forms 2007 Early retirement. Tax forms 2007   Your plan can provide for payment of retirement benefits before the normal retirement age. Tax forms 2007 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. Tax forms 2007 Satisfies the service requirement for the early retirement benefit. Tax forms 2007 Separates from service with a nonforfeitable right to an accrued benefit. Tax forms 2007 The benefit, which may be actuarially reduced, is payable when the early retirement age requirement is met. Tax forms 2007 Required minimum distributions. Tax forms 2007   Special rules require minimum annual distributions from qualified plans, generally beginning after age  70½. Tax forms 2007 See Required Distributions , under Distributions, later. Tax forms 2007 Survivor benefits. Tax forms 2007   Defined benefit and money purchase pension plans must provide automatic survivor benefits in both the following forms. Tax forms 2007 A qualified joint and survivor annuity for a vested participant who does not die before the annuity starting date. Tax forms 2007 A qualified pre-retirement survivor annuity for a vested participant who dies before the annuity starting date and who has a surviving spouse. Tax forms 2007   The automatic survivor benefit also applies to any participant under a profit-sharing plan unless all the following conditions are met. Tax forms 2007 The participant does not choose benefits in the form of a life annuity. Tax forms 2007 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. Tax forms 2007 The plan is not a direct or indirect transferee of a plan that must provide automatic survivor benefits. Tax forms 2007 Loan secured by benefits. Tax forms 2007   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. Tax forms 2007 Waiver of survivor benefits. Tax forms 2007   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. Tax forms 2007 The plan also must allow the participant to withdraw the waiver. Tax forms 2007 The spouse's consent must be witnessed by a plan representative or notary public. Tax forms 2007 Waiver of 30-day waiting period before annuity starting date. Tax forms 2007    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. Tax forms 2007   The waiver is allowed only if the distribution begins more than 7 days after the written explanation is provided. Tax forms 2007 Involuntary cash-out of benefits not more than dollar limit. Tax forms 2007   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. Tax forms 2007   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. Tax forms 2007 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. Tax forms 2007   Benefits attributable to rollover contributions and earnings on them can be ignored in determining the present value of these benefits. Tax forms 2007   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. Tax forms 2007 A section 402(f) notice must be sent prior to an involuntary cash-out of an eligible rollover distribution. Tax forms 2007 See Section 402(f) Notice under Distributions, later, for more details. Tax forms 2007 Consolidation, merger, or transfer of assets or liabilities. Tax forms 2007   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. Tax forms 2007 (if the plan had then terminated). Tax forms 2007 Benefits must not be assigned or alienated. Tax forms 2007   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. Tax forms 2007 Exception for certain loans. Tax forms 2007   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. Tax forms 2007 A disqualified person is defined later in this chapter under Prohibited Transactions. Tax forms 2007 Exception for QDRO. Tax forms 2007   Compliance with a QDRO (qualified domestic relations order) does not result in a prohibited assignment or alienation of benefits. Tax forms 2007   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. Tax forms 2007 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. Tax forms 2007 No benefit reduction for social security increases. Tax forms 2007   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. Tax forms 2007 This rule also applies to plans supplementing the benefits provided by other federal or state laws. Tax forms 2007 Elective deferrals must be limited. Tax forms 2007   If your plan provides for elective deferrals, it must limit those deferrals to the amount in effect for that particular year. Tax forms 2007 See Limit on Elective Deferrals later in this chapter. Tax forms 2007 Top-heavy plan requirements. Tax forms 2007   A top-heavy plan is one that mainly favors partners, sole proprietors, and other key employees. Tax forms 2007   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. Tax forms 2007 Additional requirements apply to a top-heavy plan primarily to provide minimum benefits or contributions for non-key employees covered by the plan. Tax forms 2007   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. Tax forms 2007 These qualification requirements for top-heavy plans are explained in section 416 and its regulations. Tax forms 2007 SIMPLE and safe harbor 401(k) plan exception. Tax forms 2007   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. Tax forms 2007 QACAs (discussed later) also are not subject to top-heavy requirements. Tax forms 2007 Setting Up a Qualified Plan There are two basic steps in setting up a qualified plan. Tax forms 2007 First you adopt a written plan. Tax forms 2007 Then you invest the plan assets. Tax forms 2007 You, the employer, are responsible for setting up and maintaining the plan. Tax forms 2007 If you are self-employed, it is not necessary to have employees besides yourself to sponsor and set up a qualified plan. Tax forms 2007 If you have employees, see Participation, under Qualification Rules, earlier. Tax forms 2007 Set-up deadline. Tax forms 2007   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). Tax forms 2007 Credit for startup costs. Tax forms 2007   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. Tax forms 2007 For more information, see Credit for startup costs under Reminders, earlier. Tax forms 2007 Adopting a Written Plan You must adopt a written plan. Tax forms 2007 The plan can be an IRS-approved master or prototype plan offered by a sponsoring organization. Tax forms 2007 Or it can be an individually designed plan. Tax forms 2007 Written plan requirement. Tax forms 2007   To qualify, the plan you set up must be in writing and must be communicated to your employees. Tax forms 2007 The plan's provisions must be stated in the plan. Tax forms 2007 It is not sufficient for the plan to merely refer to a requirement of the Internal Revenue Code. Tax forms 2007 Master or prototype plans. Tax forms 2007   Most qualified plans follow a standard form of plan (a master or prototype plan) approved by the IRS. Tax forms 2007 Master and prototype plans are plans made available by plan providers for adoption by employers (including self-employed individuals). Tax forms 2007 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. Tax forms 2007 Under a prototype plan, a separate trust or custodial account is established for each employer. Tax forms 2007 Plan providers. Tax forms 2007   The following organizations generally can provide IRS-approved master or prototype plans. Tax forms 2007 Banks (including some savings and loan associations and federally insured credit unions). Tax forms 2007 Trade or professional organizations. Tax forms 2007 Insurance companies. Tax forms 2007 Mutual funds. Tax forms 2007 Individually designed plan. Tax forms 2007   If you prefer, you can set up an individually designed plan to meet specific needs. Tax forms 2007 Although advance IRS approval is not required, you can apply for approval by paying a fee and requesting a determination letter. Tax forms 2007 You may need professional help for this. Tax forms 2007 See Rev. Tax forms 2007 Proc. Tax forms 2007 2014-6, 2014-1 I. Tax forms 2007 R. Tax forms 2007 B. Tax forms 2007 198, available at www. Tax forms 2007 irs. Tax forms 2007 gov/irb/2014-1_IRB/ar10. Tax forms 2007 html, as annually updated, that may help you decide whether to apply for approval. Tax forms 2007 Internal Revenue Bulletins are available on the IRS website at IRS. Tax forms 2007 gov They are also available at most IRS offices and at certain libraries. Tax forms 2007 User fee. Tax forms 2007   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. Tax forms 2007 At least one of them must be a non-highly compensated employee participating in the plan. Tax forms 2007 The fee does not apply to requests made by the later of the following dates. Tax forms 2007 The end of the 5th plan year the plan is in effect. Tax forms 2007 The end of any remedial amendment period for the plan that begins within the first 5 plan years. Tax forms 2007 The request cannot be made by the sponsor of a prototype or similar plan the sponsor intends to market to participating employers. Tax forms 2007   For more information about whether the user fee applies, see Rev. Tax forms 2007 Proc. Tax forms 2007 2014-8, 2014-1 I. Tax forms 2007 R. Tax forms 2007 B. Tax forms 2007 242, available at www. Tax forms 2007 irs. Tax forms 2007 gov/irb/2014-1_IRB/ar12. Tax forms 2007 html, as may be annually updated; Notice 2003-49, 2003-32 I. Tax forms 2007 R. Tax forms 2007 B. Tax forms 2007 294, available at www. Tax forms 2007 irs. Tax forms 2007 gov/irb/2003-32_IRB/ar13. Tax forms 2007 html; and Notice 2011-86, 2011-45 I. Tax forms 2007 R. Tax forms 2007 B. Tax forms 2007 698, available at www. Tax forms 2007 irs. Tax forms 2007 gov/irb/2011-45_IRB/ar11. Tax forms 2007 html. Tax forms 2007 Investing Plan Assets In setting up a qualified plan, you arrange how the plan's funds will be used to build its assets. Tax forms 2007 You can establish a trust or custodial account to invest the funds. Tax forms 2007 You, the trust, or the custodial account can buy an annuity contract from an insurance company. Tax forms 2007 Life insurance can be included only if it is incidental to the retirement benefits. Tax forms 2007 You set up a trust by a legal instrument (written document). Tax forms 2007 You may need professional help to do this. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 If anyone other than a trustee holds them, however, the contracts or certificates must state they are not transferable. Tax forms 2007 Other plan requirements. Tax forms 2007   For information on other important plan requirements, see Qualification Rules , earlier in this chapter. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 For information on this funding requirement, see section 412 and its regulations. Tax forms 2007 Quarterly installments of required contributions. Tax forms 2007   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. Tax forms 2007 If you do not pay the full installments timely, you may have to pay interest on any underpayment for the period of the underpayment. Tax forms 2007 Due dates. Tax forms 2007   The due dates for the installments are 15 days after the end of each quarter. Tax forms 2007 For a calendar-year plan, the installments are due April 15, July 15, October 15, and January 15 (of the following year). Tax forms 2007 Installment percentage. Tax forms 2007   Each quarterly installment must be 25% of the required annual payment. Tax forms 2007 Extended period for making contributions. Tax forms 2007   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. Tax forms 2007 Contributions A qualified plan is generally funded by your contributions. Tax forms 2007 However, employees participating in the plan may be permitted to make contributions, and you may be permitted to make contributions on your own behalf. Tax forms 2007 See Employee Contributions and Elective Deferrals later. Tax forms 2007 Contributions deadline. Tax forms 2007   You can make deductible contributions for a tax year up to the due date of your return (plus extensions) for that year. Tax forms 2007 Self-employed individual. Tax forms 2007   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. Tax forms 2007 Your net earnings must be from your personal services, not from your investments. Tax forms 2007 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. Tax forms 2007 Employer Contributions There are certain limits on the contributions and other annual additions you can make each year for plan participants. Tax forms 2007 There are also limits on the amount you can deduct. Tax forms 2007 See Deduction Limits , later. Tax forms 2007 Limits on Contributions and Benefits Your plan must provide that contributions or benefits cannot exceed certain limits. Tax forms 2007 The limits differ depending on whether your plan is a defined contribution plan or a defined benefit plan. Tax forms 2007 Defined benefit plan. Tax forms 2007   For 2013, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of the following amounts. Tax forms 2007 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Tax forms 2007 $205,000 ($210,000 for 2014). Tax forms 2007 Defined contribution plan. Tax forms 2007   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. Tax forms 2007 100% of the participant's compensation. Tax forms 2007 $51,000 ($52,000 for 2014). Tax forms 2007   Catch-up contributions (discussed later under Limit on Elective Deferrals) are not subject to the above limit. Tax forms 2007 Employee Contributions Participants may be permitted to make nondeductible contributions to a plan in addition to your contributions. Tax forms 2007 Even though these employee contributions are not deductible, the earnings on them are tax free until distributed in later years. Tax forms 2007 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. Tax forms 2007 See Regulations sections 1. Tax forms 2007 401(k)-2 and 1. Tax forms 2007 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). Tax forms 2007 When Contributions Are Considered Made You generally apply your plan contributions to the year in which you make them. Tax forms 2007 But you can apply them to the previous year if all the following requirements are met. Tax forms 2007 You make them by the due date of your tax return for the previous year (plus extensions). Tax forms 2007 The plan was established by the end of the previous year. Tax forms 2007 The plan treats the contributions as though it had received them on the last day of the previous year. Tax forms 2007 You do either of the following. Tax forms 2007 You specify in writing to the plan administrator or trustee that the contributions apply to the previous year. Tax forms 2007 You deduct the contributions on your tax return for the previous year. Tax forms 2007 A partnership shows contributions for partners on Form 1065. Tax forms 2007 Employer's promissory note. Tax forms 2007   Your promissory note made out to the plan is not a payment that qualifies for the deduction. Tax forms 2007 Also, issuing this note is a prohibited transaction subject to tax. Tax forms 2007 See Prohibited Transactions , later. Tax forms 2007 Employer Deduction You can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. Tax forms 2007 The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. Tax forms 2007 Deduction Limits The deduction limit for your contributions to a qualified plan depends on the kind of plan you have. Tax forms 2007 Defined contribution plans. Tax forms 2007   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. Tax forms 2007 If you are self-employed, you must reduce this limit in figuring the deduction for contributions you make for your own account. Tax forms 2007 See Deduction Limit for Self-Employed Individuals , later. Tax forms 2007   When figuring the deduction limit, the following rules apply. Tax forms 2007 Elective deferrals (discussed later) are not subject to the limit. Tax forms 2007 Compensation includes elective deferrals. Tax forms 2007 The maximum compensation that can be taken into account for each employee in 2013 is $255,000 ($260,000 for 2014). Tax forms 2007 Defined benefit plans. Tax forms 2007   The deduction for contributions to a defined benefit plan is based on actuarial assumptions and computations. Tax forms 2007 Consequently, an actuary must figure your deduction limit. Tax forms 2007    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. Tax forms 2007 Table 4–1. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 Compensation is your net earnings from self-employment, defined in chapter 1. Tax forms 2007 This definition takes into account both the following items. Tax forms 2007 The deduction for the deductible part of your self-employment tax. Tax forms 2007 The deduction for contributions on your behalf to the plan. Tax forms 2007 The deduction for your own contributions and your net earnings depend on each other. Tax forms 2007 For this reason, you determine the deduction for your own contributions indirectly by reducing the contribution rate called for in your plan. Tax forms 2007 To do this, use either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed in chapter 5. Tax forms 2007 Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. Tax forms 2007 Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. Tax forms 2007 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. Tax forms 2007 Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. Tax forms 2007 (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you get from the partnership. Tax forms 2007 ) 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. Tax forms 2007 Your combined deduction in a later year is limited to 25% of the participating employees' compensation for that year. Tax forms 2007 For purposes of this limit, a SEP is treated as a profit-sharing (defined contribution) plan. Tax forms 2007 However, this percentage limit must be reduced to figure your maximum deduction for contributions you make for yourself. Tax forms 2007 See Deduction Limit for Self-Employed Individuals, earlier. Tax forms 2007 The amount you carry over and deduct may be subject to the excise tax discussed next. Tax forms 2007 Table 4-1, earlier, illustrates the carryover of excess contributions to a profit-sharing plan. Tax forms 2007 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. Tax forms 2007 In general, a 10% excise tax applies to nondeductible contributions made to qualified pension and profit-sharing plans and to SEPs. Tax forms 2007 Special rule for self-employed individuals. Tax forms 2007   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. Tax forms 2007 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. Tax forms 2007 See Minimum Funding Requirement , earlier. Tax forms 2007 Reporting the tax. Tax forms 2007   You must report the tax on your nondeductible contributions on Form 5330. Tax forms 2007 Form 5330 includes a computation of the tax. Tax forms 2007 See the separate instructions for completing the form. Tax forms 2007 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. Tax forms 2007 A plan with this type of arrangement is popularly known as a “401(k) plan. Tax forms 2007 ” (As a self-employed individual participating in the plan, you can contribute part of your before-tax net earnings from the business. Tax forms 2007 ) This contribution is called an “elective deferral” because participants choose (elect) to defer receipt of the money. Tax forms 2007 In general, a qualified plan can include a cash or deferred arrangement only if the qualified plan is one of the following plans. Tax forms 2007 A profit-sharing plan. Tax forms 2007 A money purchase pension plan in existence on June 27, 1974, that included a salary reduction arrangement on that date. Tax forms 2007 Partnership. Tax forms 2007   A partnership can have a 401(k) plan. Tax forms 2007 Restriction on conditions of participation. Tax forms 2007   The plan cannot require, as a condition of participation, that an employee complete more than 1 year of service. Tax forms 2007 Matching contributions. Tax forms 2007   If your plan permits, you can make matching contributions for an employee who makes an elective deferral to your 401(k) plan. Tax forms 2007 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. Tax forms 2007 Matching contributions are generally subject to the ACP test discussed earlier under Employee Contributions. Tax forms 2007 Nonelective contributions. Tax forms 2007   You can also make contributions (other than matching contributions) for your participating employees without giving them the choice to take cash instead. Tax forms 2007 These are called nonelective contributions. Tax forms 2007 Employee compensation limit. Tax forms 2007   No more than $255,000 of the employee's compensation can be taken into account when figuring contributions other than elective deferrals in 2013. Tax forms 2007 This limit is $260,000 in 2014. Tax forms 2007 SIMPLE 401(k) plan. Tax forms 2007   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. Tax forms 2007 A SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy plan requirements discussed earlier under Qualification Rules. Tax forms 2007 For details about SIMPLE 401(k) plans, see SIMPLE 401(k) Plan in chapter 3. Tax forms 2007 Distributions. Tax forms 2007   Certain rules apply to distributions from 401(k) plans. Tax forms 2007 See Distributions From 401(k) Plans , later. Tax forms 2007 Limit on Elective Deferrals There is a limit on the amount an employee can defer each year under these plans. Tax forms 2007 This limit applies without regard to community property laws. Tax forms 2007 Your plan must provide that your employees cannot defer more than the limit that applies for a particular year. Tax forms 2007 For 2013 and 2014, the basic limit on elective deferrals is $17,500. Tax forms 2007 This limit applies to all salary reduction contributions and elective deferrals. Tax forms 2007 If, in conjunction with other plans, the deferral limit is exceeded, the difference is included in the employee's gross income. Tax forms 2007 Catch-up contributions. Tax forms 2007   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. Tax forms 2007 The catch-up contribution limit for 2013 and 2014 is $5,500. Tax forms 2007 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). Tax forms 2007 However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. Tax forms 2007 The catch-up contribution limit. Tax forms 2007 The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Tax forms 2007 Treatment of contributions. Tax forms 2007   Your contributions to your own 401(k) plan are generally deductible by you for the year they are contributed to the plan. Tax forms 2007 Matching or nonelective contributions made to the plan are also deductible by you in the year of contribution. Tax forms 2007 Your employees' elective deferrals other than designated Roth contributions are tax free until distributed from the plan. Tax forms 2007 Elective deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. Tax forms 2007 Forfeiture. Tax forms 2007   Employees have a nonforfeitable right at all times to their accrued benefit attributable to elective deferrals. Tax forms 2007 Reporting on Form W-2. Tax forms 2007   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. Tax forms 2007 You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. Tax forms 2007 You must also include them in box 12. Tax forms 2007 Mark the “Retirement plan” checkbox in box 13. Tax forms 2007 For more information, see the Form W-2 instructions. Tax forms 2007 Automatic Enrollment Your 401(k) plan can have an automatic enrollment feature. Tax forms 2007 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. Tax forms 2007 These contributions are elective deferrals. Tax forms 2007 An automatic enrollment feature will encourage employees' saving for retirement and will help your plan pass nondiscrimination testing (if applicable). Tax forms 2007 For more information, see Publication 4674, Automatic Enrollment 401(k) Plans for Small Businesses. Tax forms 2007 Eligible automatic contribution arrangement. Tax forms 2007   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. Tax forms 2007 This automatic election will remain in place until the participant specifically elects not to have such deferral percentage made (or elects a different percentage). Tax forms 2007 There is no required deferral percentage. Tax forms 2007 Withdrawals. Tax forms 2007   Under an EACA, you may allow participants to withdraw their automatic contributions to the plan if certain conditions are met. Tax forms 2007 The participant must elect the withdrawal no later than 90 days after the date of the first elective contributions under the EACA. Tax forms 2007 The participant must withdraw the entire amount of EACA default contributions, including any earnings thereon. Tax forms 2007   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. Tax forms 2007 The additional 10% tax on early distributions will not apply to the distribution. Tax forms 2007 Notice requirement. Tax forms 2007   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. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 The notice also must explain how contributions will be invested in the absence of an investment election by the employee. Tax forms 2007 Qualified automatic contribution arrangement. Tax forms 2007    A qualified automatic contribution arrangement (QACA) is a type of safe harbor plan. Tax forms 2007 It contains an automatic enrollment feature, and mandatory employer contributions are required. Tax forms 2007 If your plan includes a QACA, it will not be subject to the ADP test (discussed later) nor the top-heavy requirements (discussed earlier). Tax forms 2007 Additionally, your plan will not be subject to the actual contribution percentage (ACP) test if certain additional requirements are met. Tax forms 2007 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. Tax forms 2007 In order to not have default elective deferrals made, an employee must make an affirmative election specifying a deferral percentage (including zero, if desired). Tax forms 2007 If an employee does not make an affirmative election, the default deferral percentage must meet the following conditions. Tax forms 2007 It must be applied uniformly. Tax forms 2007 It must not exceed 10%. Tax forms 2007 It must be at least 3% in the first plan year it applies to an employee and through the end of the following year. Tax forms 2007 It must increase to at least 4% in the following plan year. Tax forms 2007 It must increase to at least 5% in the following plan year. Tax forms 2007 It must increase to at least 6% in subsequent plan years. Tax forms 2007 Matching or nonelective contributions. Tax forms 2007   Under the terms of the QACA, you must make either matching or nonelective contributions according to the following terms. Tax forms 2007 Matching contributions. Tax forms 2007 You must make matching contributions on behalf of each non-highly compensated employee in the following amounts. Tax forms 2007 An amount equal to 100% of elective deferrals, up to 1% of compensation. Tax forms 2007 An amount equal to 50% of elective deferrals, from 1% up to 6% of compensation. Tax forms 2007 Other formulas may be used as long as they are at least as favorable to non-highly compensated employees. Tax forms 2007 The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. Tax forms 2007 Nonelective contributions. Tax forms 2007 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. Tax forms 2007 Vesting requirements. Tax forms 2007   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. Tax forms 2007 These contributions are subject to special withdrawal restrictions, discussed later. Tax forms 2007 Notice requirements. Tax forms 2007   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. Tax forms 2007 The notice must be written in a manner calculated to be understood by the average employee, and it must be accurate and comprehensive. Tax forms 2007 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. Tax forms 2007 Additionally, the notice must explain how contributions will be invested in the absence of any investment election by the employee. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 The plan must then pay the employee that amount, plus earnings on the amount through the end of 2013, by April 15, 2014. Tax forms 2007 Excess withdrawn by April 15. Tax forms 2007   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. Tax forms 2007 However, any income earned in 2013 on the excess deferral taken out is taxable in the tax year in which it is taken out. Tax forms 2007 The distribution is not subject to the additional 10% tax on early distributions. Tax forms 2007   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. Tax forms 2007   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. Tax forms 2007 Excess not withdrawn by April 15. Tax forms 2007   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. Tax forms 2007 In effect, an excess deferral left in the plan is taxed twice, once when contributed and again when distributed. Tax forms 2007 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. Tax forms 2007 Reporting corrective distributions on Form 1099-R. Tax forms 2007   Report corrective distributions of excess deferrals (including any earnings) on Form 1099-R. Tax forms 2007 For specific information about reporting corrective distributions, see the Instructions for Forms 1099-R and 5498. Tax forms 2007 Tax on excess contributions of highly compensated employees. Tax forms 2007   The law provides tests to detect discrimination in a plan. Tax forms 2007 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. Tax forms 2007 Report the tax on Form 5330. Tax forms 2007 The ADP test does not apply to a safe harbor 401(k) plan (discussed next) nor to a QACA. Tax forms 2007 Also, the ACP test does not apply to these plans if certain additional requirements are met. Tax forms 2007   The tax for the year is 10% of the excess contributions for the plan year ending in your tax year. Tax forms 2007 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. Tax forms 2007   See Regulations sections 1. Tax forms 2007 401(k)-2 and 1. Tax forms 2007 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). Tax forms 2007    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. Tax forms 2007 Safe harbor 401(k) plan. Tax forms 2007 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. Tax forms 2007 For your plan to be a safe harbor plan, you must meet the following conditions. Tax forms 2007 Matching or nonelective contributions. Tax forms 2007 You must make matching or nonelective contributions according to one of the following formulas. Tax forms 2007 Matching contributions. Tax forms 2007 You must make matching contributions according to the following rules. Tax forms 2007 You must contribute an amount equal to 100% of each non-highly compensated employee's elective deferrals, up to 3% of compensation. Tax forms 2007 You must contribute an amount equal to 50% of each non-highly compensated employee's elective deferrals, from 3% up to 5% of compensation. Tax forms 2007 The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. Tax forms 2007 Nonelective contributions. Tax forms 2007 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. Tax forms 2007 These mandatory matching and nonelective contributions must be immediately 100% vested and are subject to special withdrawal restrictions. Tax forms 2007 Notice requirement. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 Elective deferrals designated as Roth contributions must be maintained in a separate Roth account. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 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. Tax forms 2007 An employee's nonexclusion period for a plan is the 5-tax-year period beginning with the earlier of the following tax years. Tax forms 2007 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. Tax forms 2007 Rollover. Tax forms 2007   Beginning September 28, 2010, a rollover from another account can be made to a designated Roth account in the same plan. Tax forms 2007 For additional information on these in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Tax forms 2007 R. Tax forms 2007 B. Tax forms 2007 872, available at www. Tax forms 2007 irs. Tax forms 2007 gov/irb/2010-51_IRB/ar11. Tax forms 2007 html, and Notice 2013-74. Tax forms 2007 A distribution from a designated Roth account can only be rolled over to another designated Roth account or a Roth IRA. Tax forms 2007 Rollover amounts do not apply toward the annual deferral limit. Tax forms 2007 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. Tax forms 2007 See the Form W-2 and 1099-R instructions for detailed information. Tax forms 2007 Distributions Amounts paid to plan participants from a qualified plan are called distributions. Tax forms 2007 Distributions may be nonperiodic, such as lump-sum distributions, or periodic, such as annuity payments. Tax forms 2007 Also, certain loans may be treated as distributions. Tax forms 2007 See Loans Treated as Distributions in Publication 575. Tax forms 2007 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). Tax forms 2007 These distribution rules apply individually to each qualified plan. Tax forms 2007 You cannot satisfy the requirement for one plan by taking a distribution from another. Tax forms 2007 The plan must provide that these rules override any inconsistent distribution options previously offered. Tax forms 2007 Minimum distribution. Tax forms 2007   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. Tax forms 2007 This minimum is figured by dividing the account balance by the applicable life expectancy. Tax forms 2007 The plan administrator can use the life expectancy tables in Appendix C of Publication 590 for this purpose. Tax forms 2007 For more information on figuring the minimum distribution, see Tax on Excess Accumulation in Publication 575. Tax forms 2007 Required beginning date. Tax forms 2007   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. Tax forms 2007   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. Tax forms 2007 Calendar year in which he or she reaches age 70½. Tax forms 2007 Calendar year in which he or she retires from employment with the employer maintaining the plan. Tax forms 2007 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. Tax forms 2007   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. Tax forms 2007 For more information, see Tax on Excess Accumulation in Publication 575. Tax forms 2007 Distributions after the starting year. Tax forms 2007   The distribution required to be made by April 1 is treated as a distribution for the starting year. Tax forms 2007 (The starting year is the year in which the participant meets (1) or (2) above, whichever applies. Tax forms 2007 ) After the starting year, the participant must receive the required distribution for each year by December 31 of that year. Tax forms 2007 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). Tax forms 2007 Distributions after participant's death. Tax forms 2007   See Publication 575 for the special rules covering distributions made after the death of a participant. Tax forms 2007 Distributions From 401(k) Plans Generally, distributions cannot be made until one of the following occurs. Tax forms 2007 The employee retires, dies, becomes disabled, or otherwise severs employment. Tax forms 2007 The plan ends and no other defined contribution plan is established or continued. Tax forms 2007 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. Tax forms 2007 For the rules on hardship distributions, including the limits on them, see Regulations section 1. Tax forms 2007 401(k)-1(d). Tax forms 2007 The employee becomes eligible for a qualified reservist distribution (defined next). Tax forms 2007 Certain distributions listed above may be subject to the tax on early distributions discussed later. Tax forms 2007 Qualified reservist distributions. Tax forms 2007   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. Tax forms 2007 All or part of a qualified reservist distribution can be recontributed to an IRA. Tax forms 2007 The additional 10% tax on early distributions does not apply to a qualified reservist distribution. Tax forms 2007 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. Tax forms 2007 Since most recipients have no cost basis, a distribution is generally fully taxable. Tax forms 2007 An exception is a distribution that is properly rolled over as discussed under Rollover, next. Tax forms 2007 The tax treatment of distributions depends on whether they are made periodically over several years or life (periodic distributions) or are nonperiodic distributions. Tax forms 2007 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. Tax forms 2007 Note. Tax forms 2007 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. Tax forms 2007 Also, a distribution from a designated Roth account is entirely tax-free if certain conditions are met. Tax forms 2007 See Qualified distributions under Qualified Roth Contribution Program, earlier. Tax forms 2007 Rollover. Tax forms 2007   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. Tax forms 2007 However, it may be subject to withholding as discussed under Withholding requirement, later. Tax forms 2007 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. Tax forms 2007 Eligible rollover distribution. Tax forms 2007   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. Tax forms 2007 A required minimum distribution. Tax forms 2007 See Required Distributions , earlier. Tax forms 2007 Any of a series of substantially equal payments made at least once a year over any of the following periods. Tax forms 2007 The employee's life or life expectancy. Tax forms 2007 The joint lives or life expectancies of the employee and beneficiary. Tax forms 2007 A period of 10 years or longer. Tax forms 2007 A hardship distribution. Tax forms 2007 The portion of a distribution that represents the return of an employee's nondeductible contributions to the plan. Tax forms 2007 See Employee Contributions , earlier, and Rollover of nontaxable amounts, next. Tax forms 2007 Loans treated as distributions. Tax forms 2007 Dividends on employer securities. Tax forms 2007 The cost of any life insurance coverage provided under a qualified retirement plan. Tax forms 2007 Similar items designated by the IRS in published guidance. Tax forms 2007 See, for example, the Instructions for Forms 1099-R and 5498. Tax forms 2007 Rollover of nontaxable amounts. Tax forms 2007   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. Tax forms 2007 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. Tax forms 2007 If the rollover is to an IRA, the transfer can be made by any rollover method. Tax forms 2007 Note. Tax forms 2007 A distribution from a designated Roth account can be rolled over to another designated Roth account or to a Roth IRA. Tax forms 2007 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). Tax forms 2007 More information. Tax forms 2007   For more information about rollovers, see Rollovers in Pubs. Tax forms 2007 575 and 590. Tax forms 2007 Withholding requirement. Tax forms 2007   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. Tax forms 2007 Exceptions. Tax forms 2007   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. Tax forms 2007   If the distribution is not an eligible rollover distribution, defined earlier, the 20% withholding requirement does not apply. Tax forms 2007 Other withholding rules apply to distributions that are not eligible rollover distributions, such as long-term periodic distributions and required distributions (periodic or nonperiodic). Tax forms 2007 However, the participant can choose not to have tax withheld from these distributions. Tax forms 2007 If the participant does not make this choice, the following withholding rules apply. Tax forms 2007 For periodic distributions, withholding is based on their treatment as wages. Tax forms 2007 For nonperiodic distributions, 10% of the taxable part is withheld. Tax forms 2007 Estimated tax payments. Tax forms 2007   If no income tax is withheld or not enough tax is withheld, the recipient of a distribution may have to make estimated tax payments. Tax forms 2007 For more information, see Withholding Tax and Estimated Tax in Publication 575. Tax forms 2007 Section 402(f) Notice. Tax forms 2007   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. Tax forms 2007 That the distribution may be directly transferred to an eligible retirement plan and information about which distributions are eligible for this direct transfer. Tax forms 2007 That tax will be withheld from the distribution if it is not directly transferred to an eligible retirement plan. Tax forms 2007 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. Tax forms 2007 Certain other rules that may be applicable. Tax forms 2007   Notice 2009-68, 2009-39 I. Tax forms 2007 R. Tax forms 2007 B. Tax forms 2007 423, available at www. Tax forms 2007 irs. Tax forms 2007 gov/irb/2009-39_IRB/ar14. Tax forms 2007 html, contains two updated safe harbor section 402(f) notices that plan administrators may provide recipients of eligible rollover distributions. Tax forms 2007 If the plan allows in-plan Roth rollovers, the 402(f) notice must be amended to reflect this. Tax forms 2007 Notice 2010-84 contains guidance on how to modify a 402(f) notice for in-plan Roth rollovers. Tax forms 2007 Timing of notice. Tax forms 2007   The notice generally must be provided no less than 30 days and no more than 180 days before the date of a distribution. Tax forms 2007 Method of notice. Tax forms 2007   The written notice must be provided individually to each distributee of an eligible rollover distribution. Tax forms 2007 Posting of the notice is not sufficient. Tax forms 2007 However, the written requirement may be satisfied through the use of electronic media if certain additional conditions are met. Tax forms 2007 See Regulations section 1. Tax forms 2007 401(a)-21. Tax forms 2007 Tax on failure to give notice. Tax forms 2007   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. Tax forms 2007 The tax will not be imposed if it is shown that such failure is due to reasonable cause and not to willful neglect. Tax forms 2007 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. Tax forms 2007 This tax applies to the amount received that the employee must include in income. Tax forms 2007 Exceptions. Tax forms 2007   The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances. Tax forms 2007 Made to a beneficiary (or to the estate of the employee) on or after the death of the employee. Tax forms 2007 Made due to the employee having a qualifying disability. Tax forms 2007 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. Tax forms 2007 (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. Tax forms 2007 ) Made to an employee after separation from service if the separation occurred during o