401k Information to Have During an Audit

You will need information on your 401k during an audit to show you have correctly reported the retirement account to the IRS. Since 401k accounts receive beneficial tax treatment, it is essential to show you reported the information right and received the appropriate benefits.

Contributions

You should have at least a five-year record of contributions to your retirement account. You can request this record from your plan provider; or, you can use 1099 statements given to you by your provider in the past five years to confirm the amount you deposited.

Distributions

If you took any distribution, required, qualified or otherwise, you will need to have information on this distribution. A required distribution should be shown to prove you did not violate excess accumulation regulation. A qualified distribution may be subject to taxes, and you must show you paid these taxes. Finally, an in-service withdrawal is subject to taxes and penalties, and you must have record of your payment of both.

Reported Information

It is not enough to simply show the information from your account. You should also prove you reported this information and paid all taxes you owed at the time. Records of your 1040 forms will show what you reported and how much you paid. If you have copies of checks you wrote to the IRS or the state tax board, this information is also useful.

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