Search results
I.R.C. § 4974 (d) (1) —. the shortfall described in subsection (a) in the amount distributed during any taxable year was due to reasonable error, and. I.R.C. § 4974 (d) (2) —. reasonable steps are being taken to remedy the shortfall, the Secretary may waive the tax imposed by subsection (a) for the taxable year.
19 sie 2024 · Voluntary Correction Program (VCP) – Unlike under SCP, you may request a waiver of the IRC Section 4974 excise tax for RMD failures using VCP. Learn more by reviewing Tips for VCP Submissions for Required Minimum Distributions .
GENERAL APPLICABILITY OF THE PENALTY. The 10% penalty is an income tax rather than an excise tax. It applies to any early distribution includable in the recipient’s gross income from a qualified retirement plan, defined in IRC section 4974 (c) to include. Section 401 (a) qualified pension, profit-sharing or stock bonus plans.
26 lip 2024 · The general rule is that the account owner must pay a 10% penalty on any distribution from a qualified retirement plan [defined in IRC 4974 (c).] The IRC 4974 (c) definition includes all types of retirement plans, including 401 (k) plans and IRAs [IRC 408.]
Section 4974(c) provides, in part, that the term “qualified retirement plan” means (1) a plan described in § 401 (including a trust exempt from tax under § 501(a)), (2) an annuity plan described in § 403(a), (3) a tax-
See Code Section 4974—excise tax on certain accumulations in qualified retirement plans. Find IRS publication info and the full-text Sec. 4974 on Tax Notes.
