Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

a lump-sum distribution is reported on form 1099-r. what is the significance of box 7 having a code a

Sagot :

qwarrow

The lump-sum distribution includes employer securities and the payer reported an amount in box 7.

A lump-sum distribution is when all of a plan participant's remaining balance from all of the employer's eligible plans of one kind are distributed or paid to them in one tax year (for example, pension, profit-sharing, or stock bonus plans).

The net unrealized appreciation (NUA) in employer securities is typically not subject to tax until you sell the securities, even if the lump-sum distribution includes employer securities and the payer reported a sum in box 7 of your Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. for NUA in employer securities. You may, however, decide to include the NUA in your income in the year that you receive the securities.

To know more about lump-sum payments here

https://brainly.com/question/23220127

#SPJ4

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.