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Efile 1040x Form

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Efile 1040x Form

Efile 1040x form 16. Efile 1040x form   Cómo Declarar Ganancias y Pérdidas Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Cómo Declarar Ganancias y Pérdidas de CapitalExcepción 1. Efile 1040x form Excepción 2. Efile 1040x form Presente el Formulario 1099-B o el Formulario 1099-S al IRS. Efile 1040x form Pérdidas de Capital Tasas Impositivas sobre Ganancias de Capital Qué Hay de Nuevo Tasas máximas de ganancias de capital. Efile 1040x form  Para el año 2013, las tasas máximas de ganancias de capital son del 0%, 15%, 20%, 25% y 28%. Efile 1040x form Introduction En este capítulo se explica cómo declarar ganancias y pérdidas de capital provenientes de ventas, intercambios y otras enajenaciones de bienes de inversión en el Formulario 8949 y el Anexo D (Formulario 1040). Efile 1040x form Esta explicación abarca los siguientes temas: Cómo declarar ganancias y pérdidas a corto plazo. Efile 1040x form Cómo declarar ganancias y pérdidas a largo plazo. Efile 1040x form Cómo calcular pérdidas de capital que se van a trasladar al año siguiente. Efile 1040x form Cómo calcular los impuestos sobre una ganancia neta de capital. Efile 1040x form Si vende o de otro modo enajena bienes utilizados en una ocupación o negocio o en la producción de ingresos, vea la Publicación 544, Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés, antes de completar el Anexo D (Formulario 1040). Efile 1040x form Useful Items - You may want to see: Publicación 537 Installment Sales (Ventas a plazos), en inglés 544 Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversión), en inglés Formulario (e Instrucciones) 4797 Sales of Business Property (Ventas de bienes comerciales), en inglés 6252 Installment Sale Income (Ingresos de ventas a plazos), en inglés 8582 Passive Activity Loss Limitations (Limitaciones de pérdidas en actividades pasivas), en inglés 8949 Sales and Other Dispositions of Capital Assets (Ventas y otras enajenaciones de activos de capital, en inglés) Anexo D (Formulario 1040) Capital Gains and Losses (Ganancias y pérdidas de capital), en inglés Cómo Declarar Ganancias y Pérdidas de Capital Declare sus ganancias y pérdidas de capital en el Formulario 8949. Efile 1040x form Complete el Formulario 8949 antes de completar las líneas 1b, 2, 3, 8b, 9 ó 10 del Anexo D (Formulario 1040). Efile 1040x form Use el Formulario 8949 para declarar: La venta o intercambio de un activo de capital, la cual no se declaró en ningún otro formulario o anexo, Ganancias por canjes involuntarios (aparte de cuando se deba a un hecho fortuito o un robo) de activos de capital que no sirven para propósitos de negocio o lucro y Deudas incobrables que no provienen del negocio. Efile 1040x form Use el Anexo D (Formulario 1040): Para calcular la ganancia o pérdida total de las transacciones declaradas en el Formulario 8949; Para declarar una ganancia proveniente del Formulario 6252 o de la Parte I del Formulario 4797; Para declarar una ganancia o pérdida proveniente del Formulario 4684, 6781 u 8824; Para declarar distribuciones de ganancias de capital no declaradas directamente en el Formulario 1040 o en el Formulario 1040A; Para declarar una pérdida de capital trasladada del año tributario anterior al año tributario actual; Para declarar su parte de una ganancia (o pérdida) de una sociedad colectiva, sociedad anónima de tipo S, caudal hereditario o fideicomiso; Para declarar las transacciones informadas a usted en el Formulario 1099-B (o documento sustitutivo), el cual muestra las bases informadas al IRS y al cual no corresponde ninguno de los ajustes o códigos del Formulario 8949; y Para declarar ganancias de capital a largo plazo no distribuidas provenientes del Formulario 2439. Efile 1040x form Anote en el Formulario 8949 todas las ventas e intercambios de activos de capital (incluyendo acciones, bonos, etc. Efile 1040x form ) y de bienes raíces (si no se declararon en el Formulario 4684, 4797, 6252, 6781 u 8824 o la línea 1a u 8a del Anexo D). Efile 1040x form Declare estas transacciones aun si usted no recibió un Formulario 1099-B o 1099-S (u otra declaración sustitutiva) para la transacción. Efile 1040x form Declare las ganancias o pérdidas a corto plazo en la Parte I. Efile 1040x form Declare ganancias y pérdidas a largo plazo en la Parte II. Efile 1040x form Use cuantos Formularios 8949 sean necesarios. Efile 1040x form Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040). Efile 1040x form   Hay ciertas circunstancias bajo las cuales usted tal vez no tenga que presentar el Formulario 8949 ni el Anexo D (Formulario 1040). Efile 1040x form Excepción 1. Efile 1040x form   Usted no tiene que presentar el Formulario 8949 ni el Anexo D (Formulario 1040) si no tiene pérdidas de capital y sus únicas ganancias de capital son distribuciones de ganancia de capital correspondientes al (los) recuadro(s) 2a del (de los) Formulario(s) 1099-DIV (o declaraciones sustitutivas). Efile 1040x form (Si alguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibe indica una cifra en el recuadro 2b (ganancias no recuperadas conforme a la sección 1250), el recuadro 2c (ganancias conforme a la sección 1202) o el recuadro 2d (ganancias (tasas de 28%) por la venta de objetos coleccionables, usted no reúne los requisitos para esta excepción). Efile 1040x form Si reúne los requisitos para esta excepción, declare sus distribuciones de ganancia de capital directamente en la línea 13 del Formulario 1040 y marque el recuadro en la línea 13. Efile 1040x form También debe utillizar la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para impuestos sobre dividendos y ganancias de capital), que encontrará en las Instrucciones del Formulario 1040, para calcular su impuesto. Efile 1040x form Usted pede declarar sus distribuciones de ganancias de capital en la línea 10 del Formulario 1040A, en vez del Formulario 1040, si ninguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibió indica una cifra en los recuadros 2b, 2c o 2d y usted no tiene que presentar el Formulario 1040. Efile 1040x form Excepción 2. Efile 1040x form   Usted tiene que presentar el Anexo D (Formulario 1040), pero por lo general no tiene que presentar el Formulario 8949 si la Excepción 1 no le corresponde y sus únicas ganancias y pérdidas de capital son: Distribuciones de ganancias de capital; Una pérdida de capital trasladada de un año anterior; Una ganancia correspondiente al Formulario 2439 ó 6252, o de la Parte I del Formulario 4797; Una ganancia o pérdida correspondiente al Formulario 4684, 6781 u 8824; Una ganancia o pérdida de una sociedad colectiva, sociedad anónima de tipo S, un caudal hereditario o fideicomiso; Ganancias y pérdidas de transacciones por las cuales usted recibió el Formulario 1099-B (o un documento sustitutivo), el cual muestra las bases informadas al IRS y por lo cual no necesita hacer ningún ajuste en la columna (g) del Formulario 8949 ni anotar ningún código en la columna (f) del Formulario 8949. Efile 1040x form Ventas a plazos. Efile 1040x form   No puede utilizar el método de pago a plazos para declarar una ganancia proveniente de la venta de acciones o valores bursátiles cotizados en un mercado de valores bursátiles establecido. Efile 1040x form Tiene que declarar la totalidad de la ganancia en el año de la venta (el año en el que ocurra la fecha de canje). Efile 1040x form Ganancias y pérdidas provenientes de una actividad pasiva. Efile 1040x form    Si tiene pérdidas o ganancias provenientes de una actividad pasiva, es posible que tenga que declararlas también en el Formulario 8582. Efile 1040x form En ciertos casos, la pérdida puede ser limitada conforme a las reglas de actividad pasiva. Efile 1040x form Consulte el Formulario 8582 y sus instrucciones correspondientes por separado para obtener información adicional sobre la declaración de ganancias y pérdidas de capital producto de una actividad pasiva. Efile 1040x form Transacciones que se declaran en el Formulario 1099-B. Efile 1040x form   Si vendió bienes, como acciones, bonos o ciertos productos de consumo bursátiles, a través de un agente corredor bursátil, éste debe entregarle un Formulario 1099-B o documento sustitutivo. Efile 1040x form Utilice el Formulario 1099-B o el documento sustitutivo para completar el Formulario 8949. Efile 1040x form Si usted vendió un valor bursátil garantizado en 2013, su agente corredor bursátil le mandará un Formulario 1099-B (o declaración sustitutiva) que le indica la base. Efile 1040x form Esto le ayudará a completar el Formulario 8949. Efile 1040x form Por lo general, los valores bursátiles garantizados son aquéllos que usted adquirió después del año 2010. Efile 1040x form   Declare las ganancias brutas que aparezcan en el recuadro 2a del Formulario 1099-B como el precio de venta en la columna (d) de la Parte I o la Parte II del Formulario 8949, según le corresponda a su caso. Efile 1040x form No obstante, si el agente corredor bursátil indica, en el recuadro 2a del Formulario 1099-B, haber declarado al IRS las ganancias brutas (precio de venta) menos comisiones y primas de opciones, anote el precio neto de venta resultante en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. Efile 1040x form   Incluya en la columna (g) todo gasto de venta, tal como honorarios de agente corredor bursátil, comisiones, impuestos de traspaso locales y estatales y primas de opciones, a menos que usted haya declarado el precio neto de venta en la columna (d). Efile 1040x form Si incluye un gasto de venta en la columna (g), anote “E” en la columna (f). Efile 1040x form Transacciones que se declaran en el Formulario 1099-CAP. Efile 1040x form   Si es dueño de acciones de una sociedad anónima en cuyo control o estructura de capital haya habido cambios importantes, dicha sociedad debe enviarle el Formulario 1099-CAP o documento sustitutivo. Efile 1040x form Utilice el Formulario 1099-CAP o documento sustitutivo para completar el Formulario 8949. Efile 1040x form Si sus cálculos indican que, debido al cambio, usted tendría una pérdida, no anote ninguna cantidad en el Formulario 8949 ni en el Anexo D (Formulario 1040). Efile 1040x form Esta transacción no le da la posibilidad de declarar una pérdida en el Anexo D (Formulario 1040). Efile 1040x form   Declare el total de la cantidad recibida indicado en el recuadro 2 del Formulario 1099-CAP como el precio de venta en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. Efile 1040x form Transacciones que se declaran en el Formulario 1099-S. Efile 1040x form   Si vendió o canjeó bienes raíces que han de declararse, normalmente la persona encargada de comunicar transacciones de bienes raíces debe entregarle un Formulario 1099-S en el que se indiquen las ganancias brutas. Efile 1040x form    “Bienes raíces que han de declararse” son toda participación en una propiedad actual o futura en cualesquiera de los siguientes casos: Terrenos con o sin mejoras, incluido el espacio aéreo; Estructuras intrínsecamente permanentes, incluido todo edificio residencial, comercial o industrial; Una unidad de condominio y sus instalaciones accesorias y elementos comunes, incluido el terreno; y Acciones de cooperativa de viviendas en sociedad anónima (como se define en la sección 216 del Código de Impuestos Internos). Efile 1040x form   Una “persona encargada de comunicar transacciones de bienes raíces” puede ser el abogado del comprador, el abogado de usted, una compañía de escrituras de propiedad o de cuentas en depósito, un prestamista hipotecario, el agente corredor bursátil de usted, el agente corredor bursátil del comprador o la persona que adquiera la mayor participación en la propiedad. Efile 1040x form   El Formulario 1099-S indicará las ganancias brutas de la venta o el intercambio en el recuadro 2. Efile 1040x form Consulte las Instrucciones para el Formulario 8949 y las Instrucciones para el Anexo D (Formulario 1040) para saber cómo se declaran estas transacciones e incluirlas en la Parte I o Parte II del Formulario 8949, tal como le corresponda a su caso. Efile 1040x form No obstante, declare los intercambios por bienes del mismo tipo en el Formulario 8824. Efile 1040x form   Es ilegal que una persona encargada de comunicar transacciones de bienes raíces le cobre un cargo por separado por cumplir con el requisito de presentación del Formulario 1099-S. Efile 1040x form Nominatarios. Efile 1040x form   Si recibe ganancias brutas como nominatario (es decir, las ganancias brutas están a nombre suyo pero en realidad pertenecen a otra persona), vea las Instrucciones para el Formulario 8949, para saber cómo declarar estas cantidades en el Formulario 8949. Efile 1040x form Presente el Formulario 1099-B o el Formulario 1099-S al IRS. Efile 1040x form   Si recibió ganancias brutas en calidad de nominatario en 2013, tiene que presentar al IRS el Formulario 1099-B o el Formulario 1099-S correspondiente a dichas ganancias. Efile 1040x form Envíe el Formulario 1099-B o el Formulario 1099-S junto con el Formulario 1096, Annual Summary and Transmittal of U. Efile 1040x form S. Efile 1040x form Information Returns (Resumen e informe anual de declaraciones informativas de los Estados Unidos), en inglés, al Centro de Servicio del Servicio de Impuestos Internos que le corresponda a más tardar el 28 de febrero de 2014 (31 de marzo de 2014, si presenta el Formulario 1099-B o el Formulario 1099-S por vía electrónica). Efile 1040x form Entregue la Copia B del Formulario 1099-B o del Formulario 1099-S al verdadero dueño de dichas ganancias a más tardar el 18 de febrero de 2014. Efile 1040x form En el Formulario 1099-B, usted debe constar como “Payer” (Pagador). Efile 1040x form El otro dueño debe constar como “Recipient” (Destinatario). Efile 1040x form En el Formulario 1099-S, usted debe constar como “Filer” (Declarante). Efile 1040x form El otro dueño debe constar como “Transferor” (Cesionista). Efile 1040x form No obstante, usted no tiene que presentar el Formulario 1099-B ni el Formulario 1099-S para mostrar las ganancias de su cónyuge. Efile 1040x form Para más información acerca de los requisitos de presentación de ciertas declaraciones informativas y las multas por no presentar (o facilitar) dichas declaraciones, vea las General Instructions for Certain Information Returns (Instrucciones generales para determinadas declaraciones informativas), en inglés. Efile 1040x form Si presenta la declaración electrónicamente, vea la Publicación 1220, en inglés. Efile 1040x form Venta de bienes comprados en diferentes ocasiones. Efile 1040x form   Si vende un paquete de acciones u otros bienes que haya comprado en diferentes ocasiones, declare la pérdida o ganancia a corto plazo procedente de la venta en una fila de la Parte I del Formulario 8949 y anote la pérdida o ganancia a largo plazo en una fila de la Parte II del Formulario 8949. Efile 1040x form Escriba “Various” (Varios) en la columna (b) para la “Date acquired” (Fecha de adquisición). Efile 1040x form Gastos de venta. Efile 1040x form    En la columna (g) del Formulario 8949, incluya todo gasto de venta, como honorarios de agentes corredores bursátiles, comisiones, impuestos estatales y locales sobre traspasos y primas de opciones, a menos que usted haya declarado el precio neto de ventas en la columna (d). Efile 1040x form Si usted incluyó un gasto de venta en la columna (g), anote “E” en la columna (f). Efile 1040x form   Para más información sobre los ajustes a la base, vea el capítulo 13. Efile 1040x form Ganancias y pérdidas a corto plazo. Efile 1040x form   Las ganancias o pérdidas de capital sobre la venta o canje de bienes de inversión que haya tenido por 1 año o menos se consideran pérdidas o ganancias de capital a corto plazo. Efile 1040x form Declárelas en la Parte I del Formulario 8949. Efile 1040x form   Sume su parte de pérdidas o ganancias de capital a corto plazo provenientes de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos, además de toda pérdida de capital a corto plazo que se haya trasladado de un año anterior, con las demás ganancias y pérdidas de capital a corto plazo para calcular la pérdida o ganancia de capital neta a corto plazo en la línea 7 del Anexo D (Formulario 1040). Efile 1040x form Ganancias y pérdidas a largo plazo. Efile 1040x form    Una ganancia o pérdida de capital sobre la venta o canje de bienes de inversión que haya tenido durante más de 1 año se considera ganancia o pérdida de capital a largo plazo. Efile 1040x form Declárela en la Parte II del Formulario 8949. Efile 1040x form   Usted debe declarar lo siguiente en la Parte II del Anexo D (Formulario 1040): Ganancias de capital a largo plazo de un fondo mutuo (u otra sociedad inversionista reglamentada) o de una sociedad de inversión inmobiliaria (REIT, por sus siglas en inglés) que no hayan sido distribuidas; Su participación de las ganancias y pérdidas de capital a largo plazo de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos; Toda distribución de ganancia de capital proveniente de fondos mutuos y sociedades de inversión inmobiliaria (REIT) que no se haya declarado directamente en la línea 10 del Formulario 1040A o la línea 13 del Formulario 1040; y Pérdidas de capital a largo plazo trasladadas de un año anterior. Efile 1040x form    El resultado que se dé después de sumar dichas cantidades con las demás ganancias de capital a largo plazo y restar las pérdidas de capital a largo plazo es la ganancia o pérdida de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). Efile 1040x form Total de la ganancia o pérdida neta. Efile 1040x form   Para calcular el total de la ganancia o pérdida neta, sume la ganancia o pérdida de capital neta a corto plazo (línea 7 del Anexo D (Formulario 1040)) con la pérdida o ganancia de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). Efile 1040x form Anote el resultado en la línea 16 de la Parte III del Anexo D (Formulario 1040). Efile 1040x form Si tiene pérdidas que sobrepasen las ganancias, vea Pérdidas de Capital , que se encuentra a continuación. Efile 1040x form Si las líneas 15 y 16 del Anexo D (Formulario 1040) son ganancias y el ingreso sujeto a impuestos en su Formulario 1040 es mayor de cero, vea Tasas Impositivas sobre Ganancias de Capital , más adelante. Efile 1040x form Pérdidas de Capital Si las pérdidas de capital son mayores que las ganancias de capital, se puede declarar una deducción por pérdida de capital. Efile 1040x form Declare la cantidad de la deducción en la línea 13 del Formulario 1040, anotándola entre paréntesis. Efile 1040x form Límite sobre la deducción. Efile 1040x form   La deducción por ganancia de capital permisible, calculada en el Anexo D (Formulario 1040), es la cantidad que sea menor de las siguientes: $3,000 ($1,500 si es casado y presenta una declaración por separado) o El total de la pérdida neta tal como aparece en la línea 16 del Anexo D (Formulario 1040). Efile 1040x form   Puede usar el total de la pérdida neta para reducir sus ingresos en una cantidad equivalente, hasta el límite de $3,000. Efile 1040x form Traslado de pérdida de capital. Efile 1040x form   Si el total de la pérdida neta en la línea 16 del Anexo D (Formulario 1040) sobrepasa el límite anual de las deducciones de pérdida de capital, puede trasladar al año siguiente la parte sobrante y tratarla como si hubiera incurrido en la misma durante ese próximo año. Efile 1040x form Si una parte de la pérdida sigue sin usarse, puede trasladarla a años posteriores hasta que se agote. Efile 1040x form   Cuando calcule una cantidad de pérdida de capital que se trasladará al año siguiente, tiene que tener en cuenta la deducción permisible del año en curso, la haya reclamado o no, e independientemente de si presentó o no una declaración correspondiente al año en curso. Efile 1040x form   Cuando traslade una pérdida a un año posterior, ésta sigue siendo una pérdida a largo plazo o corto plazo. Efile 1040x form Una pérdida de capital a largo plazo que usted traslade al año tributario siguiente reducirá las ganancias de capital a largo plazo de dicho año antes de reducir las ganancias de capital a corto plazo de dicho año. Efile 1040x form Cálculo de la cantidad trasladada al año siguiente. Efile 1040x form   La cantidad de la pérdida de capital a trasladarse al año siguiente es la cantidad de pérdida neta total que sea mayor que la cantidad menor entre: La deducción por pérdida de capital permisible durante el año o Sus ingresos sujetos a impuestos aumentados por la deducción por pérdida de capital permisible durante el año y la deducción por exenciones personales. Efile 1040x form   Si las deducciones son mayores que sus ingresos brutos del año tributario, utilice los ingresos negativos sujetos a impuestos al calcular la cantidad en el punto (2). Efile 1040x form    Complete la Capital Loss Carryover Worksheet (Hoja de trabajo para calcular la pérdida de capital a trasladarse a años posteriores) en las Instrucciones del Anexo D o la Publicación 550, en inglés, para calcular la parte de la pérdida de capital que se pueda trasladar. Efile 1040x form Ejemplo. Efile 1040x form Roberto y Gloria vendieron valores bursátiles en 2013. Efile 1040x form Las ventas dieron por resultado una pérdida de capital de $7,000. Efile 1040x form No hicieron otras transacciones de capital. Efile 1040x form Sus ingresos sujetos a impuestos fueron $26,000. Efile 1040x form En la declaración conjunta de 2013, pueden deducir $3,000. Efile 1040x form La parte de la pérdida que no usaron, $4,000 ($7,000 − $3,000), se puede trasladar a 2014. Efile 1040x form Si la pérdida de capital hubiera sido $2,000, la deducción por pérdida de capital también habría sido $2,000. Efile 1040x form No tendrían cantidad alguna a trasladar al año siguiente. Efile 1040x form Utilice primero las pérdidas a corto plazo. Efile 1040x form   Cuando calcule la cantidad a trasladarse al año siguiente, utilice primero las pérdidas de capital a corto plazo, aunque haya incurrido en las mismas después de una pérdida de capital a largo plazo. Efile 1040x form Si no ha alcanzado el límite de la deducción por pérdidas de capital después de haber utilizado las pérdidas de capital a corto plazo, utilice las pérdidas de capital a largo plazo hasta alcanzar el límite. Efile 1040x form Pérdida de capital de un difunto. Efile 1040x form    Una pérdida de capital sufrida por una persona en su último año tributario antes de fallecer (o que se haya traspasado de un año anterior a dicho año) se puede deducir sólo en la última declaración del impuesto sobre el ingreso personal que se presente a nombre del difunto. Efile 1040x form Los límites de pérdida de capital explicados anteriormente aún corresponden en este caso. Efile 1040x form El caudal hereditario (patrimonio) del difunto no puede deducir ninguna parte de la pérdida ni trasladarla a años posteriores. Efile 1040x form Declaraciones conjuntas y separadas. Efile 1040x form   Si antes usted y su cónyuge presentaban declaraciones por separado y ahora presentan una declaración conjunta, sume las cantidades de pérdida de capital que cada uno de ustedes haya trasladado a un año siguiente. Efile 1040x form No obstante, si antes usted y su cónyuge presentaban una declaración conjunta y ahora presentan declaraciones por separado, toda pérdida de capital que se haya trasladado a un año siguiente se puede deducir sólo en la declaración del cónyuge que de hecho sufrió la pérdida. Efile 1040x form Tasas Impositivas sobre Ganancias de Capital Las tasas impositivas correspondientes a una ganancia neta de capital suelen ser más bajas que las que corresponden a otros ingresos. Efile 1040x form Estas tasas reducidas se conocen como las “tasas máximas de ganancias de capital”. Efile 1040x form El término “ganancia neta de capital” designa la cantidad por la que la ganancia neta de capital a largo plazo del año supera la pérdida de capital neta a corto plazo. Efile 1040x form Para el año 2013, las tasas máximas correspondientes a ganancias de capital son 0%, 15%, 20%, 25% y 28%. Efile 1040x form Vea la Tabla 16-1, para obtener información detallada. Efile 1040x form Si para calcular el impuesto utiliza las tasas máximas correspondientes a ganancias de capital y el cálculo normal de impuestos le resulta en unos impuestos más bajos, el cálculo normal de impuestos es el que le corresponde. Efile 1040x form Ejemplo. Efile 1040x form Su ganancia neta de capital proviene en su totalidad de la venta de artículos coleccionables, por lo tanto, la tasa correspondiente a la ganancia de capital es 28%. Efile 1040x form Si de otro modo está sujeto a una tasa menor del 28%, la tasa del 28% no corresponde. Efile 1040x form Deducción de los intereses de inversiones. Efile 1040x form   Si declara una deducción de intereses de inversiones, tal vez tenga que reducir la cantidad de su ganancia neta de capital que reúna los requisitos para las tasas impositivas sobre ganancias de capital. Efile 1040x form Réstele la cantidad de la ganancia neta de capital que opte por incluir en los ingresos de inversiones al calcular el límite de la deducción de los mismos. Efile 1040x form Para hacer esto, se utiliza la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) en las Instrucciones para el Anexo D (Formulario 1040), en inglés, o la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital), que se encuentra en las instrucciones por separado correspondientes a los Formularios 1040 y 1040A, en inglés. Efile 1040x form Para más información acerca del límite de los intereses procedentes de inversiones, vea Interest Expenses (Gastos de intereses) en el capítulo 3 de la Publicación 550, en inglés. Efile 1040x form Tabla 16-1. Efile 1040x form ¿Cuál es la Tasa Máxima de Ganancias de Capital que le Corresponde? SI la ganancia neta de capital se deriva de . Efile 1040x form . Efile 1040x form . Efile 1040x form ENTONCES la  tasa máxima de  ganancia de capital es . Efile 1040x form . Efile 1040x form . Efile 1040x form una ganancia producto de artículos coleccionables 28% una ganancia, la cual reúne los requisitos, sobre acciones de pequeños negocios calificados menos la exclusión conforme a la sección 1202 28% una ganancia conforme a la sección 1250 no recuperada 25% otra ganancia1 y la tasa impositiva normal correspondiente es 39. Efile 1040x form 6% 20% otra ganancia1 y la tasa impositiva normal correspondiente es 25%, 28%, 33% o 35% 15% otra ganancia1 y la tasa impositiva normal correspondiente es 10% o 15% 0% 1 El término “otra ganancia” significa toda ganancia que no sea una ganancia procedente de artículos coleccionables, ganancia sobre acciones de pequeños negocios calificados o una ganancia conforme a la sección 1250 no recuperada. Efile 1040x form     Ganancia o pérdida procedente de artículos coleccionables. Efile 1040x form   Ésta es una ganancia o pérdida que se deriva de la venta o canje de una obra de arte, alfombra, antigüedad, metal (como oro, plata y platino en barras), piedra preciosa, estampilla o sello, moneda o bebida alcohólica que haya tenido más de 1 año. Efile 1040x form   Se considera que una ganancia procedente de artículos coleccionables abarca las ganancias resultantes de la venta de una participación en una sociedad colectiva, sociedad anónima de tipo S o fideicomiso, generadas por una plusvalía no realizada de dichos artículos coleccionables. Efile 1040x form Ganancia sobre acciones de pequeños negocios calificados. Efile 1040x form    Si obtuvo una ganancia de acciones de pequeños negocios calificados y fue dueño de dichas acciones durante más de 5 años, normalmente puede excluir de los ingresos una parte o la totalidad de su ganancia bajo la sección 1202. Efile 1040x form La ganancia que cumple los requisitos, menos la exclusión conforme a la sección 1202, es una ganancia con una tasa de 28%. Efile 1040x form Vea Gains on Qualified Small Business Stock (Ganancias de acciones de pequeños negocios calificados) en el capítulo 4 de la Publicación 550, en inglés. Efile 1040x form Ganancia conforme a la sección 1250 no recuperada. Efile 1040x form    Por lo general, ésta es toda parte de la ganancia de capital que se haya originado por la venta de bienes conforme a la sección 1250 (bienes raíces) debido a depreciación (pero no más que la ganancia neta conforme a la sección 1231) menos toda pérdida neta en el grupo del 28%. Efile 1040x form Use la Unrecaptured Section 1250 Gain Worksheet (Hoja de trabajo de ganancias no recuperadas conforme a la sección 1250) de las Instrucciones del Anexo D (Formulario 1040), en inglés, para calcular la ganancia no recuperada conforme a la sección 1250. Efile 1040x form Para más información sobre bienes conforme a la sección 1250 y ganancias conforme a la sección 1231, vea el capítulo 3 de la Publicación 544, en inglés. Efile 1040x form Cálculo de los impuestos a base de las tasas máximas de ganancias de capital. Efile 1040x form   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital) o la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D), la que corresponda, para calcular su impuesto si ha recibido dividendos calificados o ganancia neta de capital. Efile 1040x form Tiene ganancia neta de capital si las cantidades de las líneas 15 y 16 del Anexo D ambas son ganancias. Efile 1040x form Hoja de trabajo para los impuestos del Anexo D. Efile 1040x form   Utilice la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) que se encuentra en las Instrucciones del Anexo D (Formulario 1040) para calcular el impuesto si se dan las siguientes condiciones: Tiene que presentar el Anexo D (Formulario 1040) y La cantidad de la línea 18 (ganancia a una tasa de 28%) o la línea 19 (ganancia no recuperada conforme a la sección 1250) del Anexo D (Formulario 1040) es mayor de cero. Efile 1040x form Hoja de trabajo para el impuesto sobre dividendos calificados y ganancias de capital. Efile 1040x form   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para el impuesto sobre los dividendos calificados y ganancias de capital) de las instrucciones del Formulario 1040 o Formulario 1040A (el que presente) para calcular el impuesto si no tiene que utilizar la Hoja de trabajo para los impuestos del Anexo D (como se explica anteriormente) y corresponde cualquiera de los siguientes puntos: Recibió dividendos calificados. Efile 1040x form (Vea Dividendos Calificados en el capítulo 8). Efile 1040x form No tiene que presentar el Anexo D (Formulario 1040) y recibió distribuciones de ganancias de capital. Efile 1040x form (Vea Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040) , anteriormente). Efile 1040x form Las cantidades de las líneas 15 y 16 del Anexo D (Formulario 1040) son mayores de cero. Efile 1040x form Impuesto mínimo alternativo. Efile 1040x form   Estas tasas de ganancias de capital se utilizan también para calcular el impuesto mínimo alternativo. Efile 1040x form Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Severe Storms in Illinois

IL/KS/MO-2013-50, Nov. 27, 2013

ST. LOUIS — Victims of severe storms, straight-line winds and tornadoes that began on Nov. 17, 2013 in parts of Illinois may qualify for tax relief from the Internal Revenue Service.

Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Illinois will receive tax relief, and other locations may be added in coming days based on additional damage assessments by FEMA.

The President has declared the counties of Champaign, Douglas, Fayette, Grundy, Jasper, La Salle, Massac, Pope, Tazewell, Vermilion, Wabash, Washington, Wayne, Will and Woodford a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Nov. 17, and on or before Feb. 28, 2014, have been postponed to Feb. 28, 2014.

The IRS is also waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Nov. 17, and on or before Dec. 2, as long as the deposits are made by Dec. 2, 2013.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Feb. 28, 2014, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Nov. 17 and on or before Feb. 28, 2014.

The IRS also gives affected taxpayers until Feb. 28, 2014, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Nov. 17 and on or before Feb. 28, 2014.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Nov. 17 and on or before Dec. 2 provided the taxpayer makes these deposits by Dec. 2.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Illinois/ Severe Storms, Straight-line Winds, and Tornadoes” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Disaster Assistance and Emergency Relief for Individuals and Businesses

Recent IRS Disaster Relief Announcements

Page Last Reviewed or Updated: 27-Nov-2013

The Efile 1040x Form

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