On October 18, 2024, the IRS issued final regulations on withholding for qualified retirement plan payments made to United States taxpayers living outside of the country. The final regulations come five years after the IRS issued proposed regulations on the topic and almost four decades after the IRS issued Notice
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IRS Updates Guidance on Qualified Plan Distributions to State Unclaimed Property Funds
By S. Michael Chittenden & Julie Edmond on
The IRS recently published new guidance on the tax withholding and reporting consequences associated with qualified retirement plan distributions to state unclaimed property funds. In Revenue Ruling 2020-24, the IRS clarified that distributions from qualified retirement plans to state unclaimed property funds are subject to both federal income tax withholding and 1099-R reporting requirements. In a companion revenue procedure, Rev. Proc. 2020-46, the IRS permitted taxpayers to self-certify for a waiver of the 60-day deadline for rolling over funds between qualified plans when the funds had been distributed to a state unclaimed property fund.
Continue Reading IRS Updates Guidance on Qualified Plan Distributions to State Unclaimed Property Funds