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Irs 2012 Tax Forms 1040 Ez

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Irs 2012 Tax Forms 1040 Ez

Irs 2012 tax forms 1040 ez 1. Irs 2012 tax forms 1040 ez   Canceled Debts Table of Contents General RulesForm 1099-C Discounts and loan modifications Sales or other dispositions (such as foreclosures and repossessions) Abandonments Stockholder debt This chapter discusses the tax treatment of canceled debts. Irs 2012 tax forms 1040 ez General Rules Generally, if a debt for which you are personally liable is forgiven or discharged for less than the full amount owed, the debt is considered canceled in whatever amount it remained unpaid. Irs 2012 tax forms 1040 ez There are exceptions to this rule, discussed under Exceptions , later. Irs 2012 tax forms 1040 ez Generally, you must include the canceled debt in your income. Irs 2012 tax forms 1040 ez However, you may be able to exclude the canceled debt. Irs 2012 tax forms 1040 ez See Exclusions , later. Irs 2012 tax forms 1040 ez Example. Irs 2012 tax forms 1040 ez John owed $1,000 to Mary. Irs 2012 tax forms 1040 ez Mary agreed to accept and John paid $400 in satisfaction of the entire debt. Irs 2012 tax forms 1040 ez John has canceled debt of $600. Irs 2012 tax forms 1040 ez Example. Irs 2012 tax forms 1040 ez Margaret owed $1,000 to Henry. Irs 2012 tax forms 1040 ez Henry and Margaret agreed that Margaret would provide Henry with services (instead of money) in full satisfaction of the debt. Irs 2012 tax forms 1040 ez Margaret does not have canceled debt. Irs 2012 tax forms 1040 ez Instead, she has income from services. Irs 2012 tax forms 1040 ez A debt includes any indebtedness: For which you are liable, or Subject to which you hold property. Irs 2012 tax forms 1040 ez Debt for which you are personally liable is recourse debt. Irs 2012 tax forms 1040 ez All other debt is nonrecourse debt. Irs 2012 tax forms 1040 ez If you are not personally liable for the debt, you do not have ordinary income from the cancellation of debt unless you retain the collateral and either: The lender offers a discount for the early payment of the debt, or The lender agrees to a loan modification that results in the reduction of the principal balance of the debt. Irs 2012 tax forms 1040 ez See Discounts and loan modifications , later. Irs 2012 tax forms 1040 ez However, upon the disposition of the property securing a nonrecourse debt, the amount realized includes the entire unpaid amount of the debt, not just the FMV of the property. Irs 2012 tax forms 1040 ez As a result, you may realize a gain or loss if the outstanding debt immediately before the disposition is more or less than your adjusted basis in the property. Irs 2012 tax forms 1040 ez For more details on figuring your gain or loss, see chapter 2 of this publication or see Publication 544. Irs 2012 tax forms 1040 ez There are several exceptions and exclusions that may result in part or all of a canceled debt being nontaxable. Irs 2012 tax forms 1040 ez See Exceptions and Exclusions, later. Irs 2012 tax forms 1040 ez You must report any taxable canceled debt as ordinary income on: Form 1040 or Form 1040NR, line 21, if the debt is a nonbusiness debt; Schedule C (Form 1040), line 6 (or Schedule C-EZ (Form 1040), line 1), if the debt is related to a nonfarm sole proprietorship; Schedule E (Form 1040), line 3, if the debt is related to nonfarm rental of real property; Form 4835, line 6, if the debt is related to a farm rental activity for which you use Form 4835 to report farm rental income based on crops or livestock produced by a tenant; or Schedule F (Form 1040), line 8, if the debt is farm debt and you are a farmer. Irs 2012 tax forms 1040 ez Form 1099-C If you receive a Form 1099-C, that means an applicable entity has reported an identifiable event to the IRS regarding a debt you owe. Irs 2012 tax forms 1040 ez The identifiable event may be an actual cancellation of the debt or it may be an event the applicable entity is required, solely for purposes of reporting to the IRS, to treat as a cancellation of debt. Irs 2012 tax forms 1040 ez For information on the reasons an applicable entity files Form 1099-C, see Identifiable event codes, later. Irs 2012 tax forms 1040 ez Unless you meet one of the exceptions or exclusions discussed later, this canceled debt is ordinary income and must be reported on the appropriate form discussed above. Irs 2012 tax forms 1040 ez An applicable entity includes: A federal government agency, A financial institution, A credit union, and Any organization a significant trade or business of which is lending money. Irs 2012 tax forms 1040 ez Identifiable event codes. Irs 2012 tax forms 1040 ez    Box 6 of Form 1099-C should indicate the reason the creditor filed this form. Irs 2012 tax forms 1040 ez The codes shown in box 6 are explained below. Irs 2012 tax forms 1040 ez Also see the chart after the explanation for a quick reference guide for the codes used in Box 6. Irs 2012 tax forms 1040 ez Note. Irs 2012 tax forms 1040 ez Codes A through G and I identify specific occurrences resulting from an actual discharge of indebtedness. Irs 2012 tax forms 1040 ez However, Code H, Expiration of nonpayment testing period, does not necessarily identify an actual discharge of indebtedness. Irs 2012 tax forms 1040 ez Code A — Bankruptcy. Irs 2012 tax forms 1040 ez Code A is used to identify cancellation of debt as a result of a title 11 bankruptcy case. Irs 2012 tax forms 1040 ez See Bankruptcy , later. Irs 2012 tax forms 1040 ez Code B — Other judicial debt relief. Irs 2012 tax forms 1040 ez Code B is used to identify cancellation of debt as a result of a receivership, foreclosure, or similar federal or state court proceeding other than bankruptcy. Irs 2012 tax forms 1040 ez Code C — Statute of limitations or expiration of deficiency period. Irs 2012 tax forms 1040 ez Code C is used to identify cancellation of debt either when the statute of limitations for collecting the debt expires or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Irs 2012 tax forms 1040 ez In the case of the expiration of a statute of limitations, an identifiable event occurs only if and when your affirmative defense of the statute of limitations is upheld in a final judgment or decision in a judicial proceeding, and the period for appealing the judgment or decision has expired. Irs 2012 tax forms 1040 ez Code D — Foreclosure election. Irs 2012 tax forms 1040 ez Code D is used to identify cancellation of debt when the creditor elects foreclosure remedies that statutorily end or bar the creditor's right to pursue collection of the debt. Irs 2012 tax forms 1040 ez This event applies to a mortgage lender or holder who is barred from pursuing debt collection after a power of sale in the mortgage or deed of trust is exercised. Irs 2012 tax forms 1040 ez Code E — Debt relief from probate or similar proceeding. Irs 2012 tax forms 1040 ez Code E is used to identify cancellation of debt as a result of a probate court or similar legal proceeding. Irs 2012 tax forms 1040 ez Code F — By agreement. Irs 2012 tax forms 1040 ez Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration. Irs 2012 tax forms 1040 ez Code G — Decision or policy to discontinue collection. Irs 2012 tax forms 1040 ez Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. Irs 2012 tax forms 1040 ez For purposes of this identifiable event, a defined policy includes both a written policy and the creditor's established business practice. Irs 2012 tax forms 1040 ez Code H — Expiration of nonpayment testing period. Irs 2012 tax forms 1040 ez Code H is used to indicate that the creditor has not received a payment on the debt during a testing period ending on December 31, 2013. Irs 2012 tax forms 1040 ez The testing period is a 36-month period increased by the number of months the creditor was prevented from engaging in collection activity by a stay in bankruptcy or similar bar under state or local law. Irs 2012 tax forms 1040 ez This identifiable event applies only for a creditor that is a financial institution or credit union (and certain of their subsidiaries), the Federal Deposit Insurance Corporation (FDIC), Resolution Trust Corporation (RTC), National Credit Union Administration (NCUA), and other Federal executive agencies. Irs 2012 tax forms 1040 ez Expiration of the nonpayment testing period does not necessarily result from an actual discharge of indebtedness. Irs 2012 tax forms 1040 ez Code I — Other actual discharge before identifiable event. Irs 2012 tax forms 1040 ez Code I is used to identify an actual cancellation of debt that occurs before any of the identifiable events described in codes A through H. Irs 2012 tax forms 1040 ez Form 1099-C Reference Guide for Box 6 Identifiable Event Codes A Bankruptcy B Other judicial debt relief C Statute of limitations or expiration of deficiency period D Foreclosure election E Debt relief from probate or similar proceeding F By agreement G Decision or policy to discontinue collection H Expiration of nonpayment testing period I Other actual discharge before identifiable event Even if you did not receive a Form 1099-C, you must report canceled debt as gross income on your tax return unless one of the exceptions or exclusions described later applies. Irs 2012 tax forms 1040 ez Amount of canceled debt. Irs 2012 tax forms 1040 ez    The amount in box 2 of Form 1099-C may represent some or all of the debt that has been canceled or treated as canceled. Irs 2012 tax forms 1040 ez The amount in box 2 will include principal and may include interest and other nonprincipal amounts (such as fees or penalties). Irs 2012 tax forms 1040 ez Unless you meet one of the exceptions or exclusions discussed later, the amount of the debt that has been canceled is ordinary income and must be reported on the appropriate form as discussed earlier. Irs 2012 tax forms 1040 ez Interest included in canceled debt. Irs 2012 tax forms 1040 ez    If any interest is included in the amount of canceled debt in box 2, it will be shown in box 3. Irs 2012 tax forms 1040 ez Whether the interest portion of the canceled debt must be included in your income depends on whether the interest would be deductible if you paid it. Irs 2012 tax forms 1040 ez See Deductible Debt under Exceptions, later. Irs 2012 tax forms 1040 ez Persons who each receive a Form 1099-C showing the full amount of debt. Irs 2012 tax forms 1040 ez    If you and another person were jointly and severally liable for a canceled debt, each of you may get a Form 1099-C showing the entire amount of the canceled debt. Irs 2012 tax forms 1040 ez However, you may not have to report that entire amount as income. Irs 2012 tax forms 1040 ez The amount, if any, you must report depends on all the facts and circumstances, including: State law, The amount of debt proceeds each person received, How much of any interest deduction from the debt was claimed by each person, How much of the basis of any co-owned property bought with the debt proceeds was allocated to each co-owner, and Whether the canceled debt qualifies for any of the exceptions or exclusions described in this publication. Irs 2012 tax forms 1040 ez See Example 3 under Insolvency, later. Irs 2012 tax forms 1040 ez Discounts and loan modifications If a lender discounts (reduces) the principal balance of a loan because you pay it off early, or agrees to a loan modification (a “workout”) that includes a reduction in the principal balance of a loan, the amount of the discount or the amount of principal reduction is canceled debt. Irs 2012 tax forms 1040 ez However, if the debt is nonrecourse and you did not retain the collateral, you do not have cancellation of the debt income. Irs 2012 tax forms 1040 ez The amount of the canceled debt must be included in income unless one of the exceptions or exclusions described later applies. Irs 2012 tax forms 1040 ez For more details, see Exceptions and Exclusions, later. Irs 2012 tax forms 1040 ez Sales or other dispositions (such as foreclosures and repossessions) Recourse debt. Irs 2012 tax forms 1040 ez   If you owned property that was subject to a recourse debt in excess of the FMV of the property, the lender's foreclosure or repossession of the property is treated as a sale or disposition of the property by you and may result in your realization of gain or loss. Irs 2012 tax forms 1040 ez The gain or loss on the disposition of the property is measured by the difference between the FMV of the property at the time of the disposition and your adjusted basis (usually your cost) in the property. Irs 2012 tax forms 1040 ez The character of the gain or loss (such as ordinary or capital) is determined by the character of the property. Irs 2012 tax forms 1040 ez If the lender forgives all or part of the amount of the debt in excess of the FMV of the property, the cancellation of the excess debt may result in ordinary income. Irs 2012 tax forms 1040 ez The ordinary income from the cancellation of debt (the excess of the canceled debt over the FMV of the property) must be included in your gross income reported on your tax return unless one of the exceptions or exclusions described later applies. Irs 2012 tax forms 1040 ez For more details, see Exceptions and Exclusions, later. Irs 2012 tax forms 1040 ez Nonrecourse debt. Irs 2012 tax forms 1040 ez   If you owned property that was subject to a nonrecourse debt in excess of the FMV of the property, the lender's foreclosure on the property does not result in ordinary income from the cancellation of debt. Irs 2012 tax forms 1040 ez The entire amount of the nonrecourse debt is treated as an amount realized on the disposition of the property. Irs 2012 tax forms 1040 ez The gain or loss on the disposition of the property is measured by the difference between the total amount realized (the entire amount of the nonrecourse debt plus the amount of cash and the FMV of any property received) and your adjusted basis in the property. Irs 2012 tax forms 1040 ez The character of the gain or loss is determined by the character of the property. Irs 2012 tax forms 1040 ez More information. Irs 2012 tax forms 1040 ez    See Publications 523, 544, and 551, and chapter 2 of this publication for more details. Irs 2012 tax forms 1040 ez Abandonments Recourse debt. Irs 2012 tax forms 1040 ez   If you abandon property that secures a debt for which you are personally liable (recourse debt) and the debt is canceled, you will realize ordinary income equal to the canceled debt. Irs 2012 tax forms 1040 ez You must report this income on your tax return unless one of the exceptions or exclusions described later applies. Irs 2012 tax forms 1040 ez For more details, see Exceptions and Exclusions, later. Irs 2012 tax forms 1040 ez This income is separate from any amount realized from the abandonment of the property. Irs 2012 tax forms 1040 ez For more details, see chapter 3. Irs 2012 tax forms 1040 ez Nonrecourse debt. Irs 2012 tax forms 1040 ez   If you abandon property that secures a debt for which you are not personally liable (nonrecourse debt), you may realize gain or loss but will not have cancellation of indebtedness income. Irs 2012 tax forms 1040 ez Stockholder debt If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution. Irs 2012 tax forms 1040 ez For more information, see Publication 542, Corporations. Irs 2012 tax forms 1040 ez Prev  Up  Next   Home   More Online Publications
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Irs 2012 tax forms 1040 ez Publication 560 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSEP plans. Irs 2012 tax forms 1040 ez SIMPLE plans. Irs 2012 tax forms 1040 ez Qualified plans. Irs 2012 tax forms 1040 ez Ordering forms and publications. Irs 2012 tax forms 1040 ez Tax questions. Irs 2012 tax forms 1040 ez Future Developments For the latest information about developments related to Publication 560, such as legislation enacted after we release it, go to www. Irs 2012 tax forms 1040 ez irs. Irs 2012 tax forms 1040 ez gov/pub560. Irs 2012 tax forms 1040 ez What's New Compensation limit increased for 2013 and 2014. Irs 2012 tax forms 1040 ez  For 2013 the maximum compensation used for figuring contributions and benefits increases to $255,000. Irs 2012 tax forms 1040 ez This limit increases to $260,000 for 2014. Irs 2012 tax forms 1040 ez Elective deferral limit for 2013 and 2014. Irs 2012 tax forms 1040 ez  The limit on elective deferrals, other than catch-up contributions, increases to $17,500 for 2013 and remains at $17,500 for 2014. Irs 2012 tax forms 1040 ez These limits apply for participants in SARSEPs, 401(k) plans (excluding SIMPLE plans), section 403(b) plans and section 457(b) plans. Irs 2012 tax forms 1040 ez Defined contribution limit increased for 2013 and 2014. Irs 2012 tax forms 1040 ez  The limit on contributions, other than catch-up contributions, for a participant in a defined contribution plan increases to $51,000 for 2013. Irs 2012 tax forms 1040 ez This limit increases to $52,000 for 2014. Irs 2012 tax forms 1040 ez SIMPLE plan salary reduction contribution limit for 2013 and 2014. Irs 2012 tax forms 1040 ez  The limit on salary reduction contributions, other than catch-up contributions, increases to $12,000 for 2013 and remains at $12,000 for 2014. Irs 2012 tax forms 1040 ez Catch-up contribution limit remains unchanged for 2013 and 2014. Irs 2012 tax forms 1040 ez  A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. Irs 2012 tax forms 1040 ez The catch-up contribution limitation for defined contribution plans other than SIMPLE plans remains unchanged at $5,500 for 2013 and 2014. Irs 2012 tax forms 1040 ez The catch-up contribution limitation for SIMPLE plans remains unchanged at $2,500 for 2013 and 2014. Irs 2012 tax forms 1040 ez The catch-up contributions a participant can make for a year cannot exceed the lesser of the following amounts. Irs 2012 tax forms 1040 ez The catch-up contribution limit. Irs 2012 tax forms 1040 ez The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Irs 2012 tax forms 1040 ez See “Catch-up contributions” under Contribution Limits and Limit on Elective Deferrals in chapters 3 and 4, respectively, for more information. Irs 2012 tax forms 1040 ez All section references are to the Internal Revenue Code, unless otherwise stated. Irs 2012 tax forms 1040 ez Reminders In-plan Roth rollovers. Irs 2012 tax forms 1040 ez  Section 402A(c)(4) provides for a distribution from an individual's account in a 401(k) plan, other than from a designated Roth account, that is rolled over to the individual's designated Roth account in the same plan. Irs 2012 tax forms 1040 ez An in-plan Roth rollover is not treated as a distribution for most purposes. Irs 2012 tax forms 1040 ez Section 402A(c)(4) was added by the Small Business Jobs Act of 2010 and applies to distributions made after September 27, 2010. Irs 2012 tax forms 1040 ez For additional guidance on in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Irs 2012 tax forms 1040 ez R. Irs 2012 tax forms 1040 ez B. Irs 2012 tax forms 1040 ez 872, available at  www. Irs 2012 tax forms 1040 ez irs. Irs 2012 tax forms 1040 ez gov/irb/2010-51_IRB/ar11. Irs 2012 tax forms 1040 ez html. Irs 2012 tax forms 1040 ez In-plan Roth rollovers expanded. Irs 2012 tax forms 1040 ez  Beginning in 2013, a plan with designated Roth accounts can permit a participant to roll over amounts into a designated Roth account from his or her other accounts in the same plan, regardless of whether the participant is eligible for a distribution from the other accounts. Irs 2012 tax forms 1040 ez Section 402A(c)(4) was amended by the American Taxpayer Relief Act of 2012. Irs 2012 tax forms 1040 ez For more information, see Notice 2013-74, 2013-52 I. Irs 2012 tax forms 1040 ez R. Irs 2012 tax forms 1040 ez B. Irs 2012 tax forms 1040 ez 819, available at www. Irs 2012 tax forms 1040 ez irs. Irs 2012 tax forms 1040 ez gov/irb/2013-52_IRB/ar11. Irs 2012 tax forms 1040 ez html. Irs 2012 tax forms 1040 ez Credit for startup costs. Irs 2012 tax forms 1040 ez  You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan. Irs 2012 tax forms 1040 ez The credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. Irs 2012 tax forms 1040 ez You can choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective. Irs 2012 tax forms 1040 ez You must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year. Irs 2012 tax forms 1040 ez At least one participant must be a non-highly compensated employee. Irs 2012 tax forms 1040 ez The employees generally cannot be substantially the same employees for whom contributions were made or benefits accrued under a plan of any of the following employers in the 3-tax-year period immediately before the first year to which the credit applies. Irs 2012 tax forms 1040 ez You. Irs 2012 tax forms 1040 ez A member of a controlled group that includes you. Irs 2012 tax forms 1040 ez A predecessor of (1) or (2). Irs 2012 tax forms 1040 ez The credit is part of the general business credit, which can be carried back or forward to other tax years if it cannot be used in the current year. Irs 2012 tax forms 1040 ez However, the part of the general business credit attributable to the small employer pension plan startup cost credit cannot be carried back to a tax year beginning before January 1, 2002. Irs 2012 tax forms 1040 ez You cannot deduct the part of the startup costs equal to the credit claimed for a tax year, but you can choose not to claim the allowable credit for a tax year. Irs 2012 tax forms 1040 ez To take the credit, use Form 8881, Credit for Small Employer Pension Plan Startup Costs. Irs 2012 tax forms 1040 ez Retirement savings contributions credit. Irs 2012 tax forms 1040 ez  Retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. Irs 2012 tax forms 1040 ez The maximum contribution eligible for the credit is $2,000. Irs 2012 tax forms 1040 ez To take the credit, use Form 8880, Credit for Qualified Retirement Savings Contributions. Irs 2012 tax forms 1040 ez For more information on who is eligible for the credit, retirement plan contributions eligible for the credit and how to figure the credit, see Form 8880 and its instructions or go to the IRS website and search Retirement Topics-Retirement Savings Contributions Credit (Saver's Credit). Irs 2012 tax forms 1040 ez Photographs of missing children. Irs 2012 tax forms 1040 ez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Irs 2012 tax forms 1040 ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs 2012 tax forms 1040 ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Irs 2012 tax forms 1040 ez Introduction This publication discusses retirement plans you can set up and maintain for yourself and your employees. Irs 2012 tax forms 1040 ez In this publication, “you” refers to the employer. Irs 2012 tax forms 1040 ez See chapter 1 for the definition of the term employer and the definitions of other terms used in this publication. Irs 2012 tax forms 1040 ez This publication covers the following types of retirement plans. Irs 2012 tax forms 1040 ez SEP (simplified employee pension) plans. Irs 2012 tax forms 1040 ez SIMPLE (savings incentive match plan for employees) plans. Irs 2012 tax forms 1040 ez Qualified plans (also called H. Irs 2012 tax forms 1040 ez R. Irs 2012 tax forms 1040 ez 10 plans or Keogh plans when covering self-employed individuals), including 401(k) plans. Irs 2012 tax forms 1040 ez SEP, SIMPLE, and qualified plans offer you and your employees a tax-favored way to save for retirement. Irs 2012 tax forms 1040 ez You can deduct contributions you make to the plan for your employees. Irs 2012 tax forms 1040 ez If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. Irs 2012 tax forms 1040 ez You can also deduct trustees' fees if contributions to the plan do not cover them. Irs 2012 tax forms 1040 ez Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Irs 2012 tax forms 1040 ez Under a 401(k) plan, employees can have you contribute limited amounts of their before-tax (after-tax, in the case of a qualified Roth contribution program) pay to the plan. Irs 2012 tax forms 1040 ez These amounts (and the earnings on them) are generally tax free until your employees receive distributions from the plan or, in the case of a qualified distribution from a designated Roth account, completely tax free. Irs 2012 tax forms 1040 ez What this publication covers. Irs 2012 tax forms 1040 ez   This publication contains the information you need to understand the following topics. Irs 2012 tax forms 1040 ez What type of plan to set up. Irs 2012 tax forms 1040 ez How to set up a plan. Irs 2012 tax forms 1040 ez How much you can contribute to a plan. Irs 2012 tax forms 1040 ez How much of your contribution is deductible. Irs 2012 tax forms 1040 ez How to treat certain distributions. Irs 2012 tax forms 1040 ez How to report information about the plan to the IRS and your employees. Irs 2012 tax forms 1040 ez Basic features of SEP, SIMPLE, and qualified plans. Irs 2012 tax forms 1040 ez The key rules for SEP, SIMPLE, and qualified plans are outlined in Table 1. Irs 2012 tax forms 1040 ez SEP plans. Irs 2012 tax forms 1040 ez   SEPs provide a simplified method for you to make contributions to a retirement plan for yourself and your employees. Irs 2012 tax forms 1040 ez Instead of setting up a profit-sharing or money purchase plan with a trust, you can adopt a SEP agreement and make contributions directly to a traditional individual retirement account or a traditional individual retirement annuity (SEP-IRA) set up for yourself and each eligible employee. Irs 2012 tax forms 1040 ez SIMPLE plans. Irs 2012 tax forms 1040 ez   Generally, if you had 100 or fewer employees who received at least $5,000 in compensation last year, you can set up a SIMPLE plan. Irs 2012 tax forms 1040 ez Under a SIMPLE plan, employees can choose to make salary reduction contributions rather than receiving these amounts as part of their regular pay. Irs 2012 tax forms 1040 ez In addition, you will contribute matching or nonelective contributions. Irs 2012 tax forms 1040 ez The two types of SIMPLE plans are the SIMPLE IRA plan and the SIMPLE 401(k) plan. Irs 2012 tax forms 1040 ez Qualified plans. Irs 2012 tax forms 1040 ez   The qualified plan rules are more complex than the SEP plan and SIMPLE plan rules. Irs 2012 tax forms 1040 ez However, there are advantages to qualified plans, such as increased flexibility in designing plans and increased contribution and deduction limits in some cases. Irs 2012 tax forms 1040 ez Table 1. Irs 2012 tax forms 1040 ez Key Retirement Plan Rules for 2013 Type  of  Plan Last Date for Contribution Maximum Contribution Maximum Deduction When To Set Up Plan SEP Due date of employer's return (including extensions). Irs 2012 tax forms 1040 ez Smaller of $51,000 or 25%1 of participant's compensation. Irs 2012 tax forms 1040 ez 2 25%1 of all participants' compensation. Irs 2012 tax forms 1040 ez 2 Any time up to the due date of employer's return (including extensions). Irs 2012 tax forms 1040 ez SIMPLE IRA and SIMPLE 401(k) Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made. Irs 2012 tax forms 1040 ez 4  Matching or nonelective contributions: Due date of employer's return (including extensions). Irs 2012 tax forms 1040 ez Employee contribution: Salary reduction contribution up to $12,000, $14,500 if age 50 or over. Irs 2012 tax forms 1040 ez   Employer contribution:  Either dollar-for-dollar matching contributions, up to 3% of employee's compensation,3 or fixed nonelective contributions of 2% of compensation. Irs 2012 tax forms 1040 ez 2 Same as maximum contribution. Irs 2012 tax forms 1040 ez Any time between 1/1 and 10/1 of the calendar year. Irs 2012 tax forms 1040 ez   For a new employer coming into existence after 10/1, as soon as administratively feasible. Irs 2012 tax forms 1040 ez Qualified Plan: Defined Contribution Plan  Elective deferral: Due date of employer's return (including extensions). Irs 2012 tax forms 1040 ez 4   Employer contribution: Money Purchase or Profit-Sharing: Due date of employer's return (including extensions). Irs 2012 tax forms 1040 ez  Employee contribution: Elective deferral up to $17,500, $23,000 if age 50 or over. Irs 2012 tax forms 1040 ez   Employer contribution: Money Purchase: Smaller of $51,000 or 100%1 of participant's compensation. Irs 2012 tax forms 1040 ez 2  Profit-Sharing: Smaller of $51,000 or 100%1 of participant's compensation. Irs 2012 tax forms 1040 ez 2  25%1 of all participants' compensation2, plus amount of elective deferrals made. Irs 2012 tax forms 1040 ez   By the end of the tax year. Irs 2012 tax forms 1040 ez Qualified Plan: Defined Benefit Plan Contributions generally must be paid in quarterly installments, due 15 days after the end of each quarter. Irs 2012 tax forms 1040 ez See Minimum Funding Requirement in chapter 4. Irs 2012 tax forms 1040 ez Amount needed to provide an annual benefit no larger than the smaller of $205,000 or 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Irs 2012 tax forms 1040 ez Based on actuarial assumptions and computations. Irs 2012 tax forms 1040 ez By the end of the tax year. Irs 2012 tax forms 1040 ez 1Net earnings from self-employment must take the contribution into account. Irs 2012 tax forms 1040 ez See Deduction Limit for Self-Employed Individuals in chapters 2 and 4 . Irs 2012 tax forms 1040 ez  2Compensation is generally limited to $255,000 in 2013. Irs 2012 tax forms 1040 ez  3Under a SIMPLE 401(k) plan, compensation is generally limited to $255,000 in 2013. Irs 2012 tax forms 1040 ez  4Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions and elective deferrals. Irs 2012 tax forms 1040 ez What this publication does not cover. Irs 2012 tax forms 1040 ez   Although the purpose of this publication is to provide general information about retirement plans you can set up for your employees, it does not contain all the rules and exceptions that apply to these plans. Irs 2012 tax forms 1040 ez You may also need professional help and guidance. Irs 2012 tax forms 1040 ez   Also, this publication does not cover all the rules that may be of interest to employees. Irs 2012 tax forms 1040 ez For example, it does not cover the following topics. Irs 2012 tax forms 1040 ez The comprehensive IRA rules an employee needs to know. Irs 2012 tax forms 1040 ez These rules are covered in Publication 590, Individual Retirement Arrangements (IRAs). Irs 2012 tax forms 1040 ez The comprehensive rules that apply to distributions from retirement plans. Irs 2012 tax forms 1040 ez These rules are covered in Publication 575, Pension and Annuity Income. Irs 2012 tax forms 1040 ez The comprehensive rules that apply to section 403(b) plans. Irs 2012 tax forms 1040 ez These rules are covered in Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). Irs 2012 tax forms 1040 ez Comments and suggestions. Irs 2012 tax forms 1040 ez   We welcome your comments about this publication and your suggestions for future editions. Irs 2012 tax forms 1040 ez   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Irs 2012 tax forms 1040 ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs 2012 tax forms 1040 ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs 2012 tax forms 1040 ez   You can send your comments from www. Irs 2012 tax forms 1040 ez irs. Irs 2012 tax forms 1040 ez gov/formspubs. Irs 2012 tax forms 1040 ez Click on “More Information” and then on “Give us feedback. Irs 2012 tax forms 1040 ez ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs 2012 tax forms 1040 ez Ordering forms and publications. Irs 2012 tax forms 1040 ez   Visit www. Irs 2012 tax forms 1040 ez irs. Irs 2012 tax forms 1040 ez gov/formspubs to download forms  and publications, call 1-800-TAX-FORM  (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Irs 2012 tax forms 1040 ez Internal Revenue Service 1201 N. Irs 2012 tax forms 1040 ez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs 2012 tax forms 1040 ez   If you have a tax question, check the information available on IRS. Irs 2012 tax forms 1040 ez gov or call 1-800-829-1040. Irs 2012 tax forms 1040 ez We cannot answer tax questions sent to either of the above addresses. Irs 2012 tax forms 1040 ez Note. Irs 2012 tax forms 1040 ez Forms filed electronically with the Department of Labor are not available on the IRS website. Irs 2012 tax forms 1040 ez Instead, see www. Irs 2012 tax forms 1040 ez efast. 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