IRS reporting of SEPP

L1: IRS reporting of SEPPI started a SEPP in 2008. This will be my first year reporting it on my 1040 income tax form. Charles Schwab is handling my distributions from my IRA. On the 1099 they sent me, they show the total amount distributed and distribution code 2 on line 7.I am thinking I can just enter this total amount on form 1040 line 15b. I also had taxes taken out automatically. Is this all I need to enter on my 1040 form, or does a SEPP require additional paperwork sent in every year?Thanks for any help. I have learned so much from this web site.2009-01-23 23:09, By: kburl, IP: [72.47.188.84]
L2: IRS reporting of SEPPAll you need to do is enter the gross distribution on line 15a and the taxable amount on line 15b. If you ever made non deductible IRA contributions and filed Form 8606, part of your distribution will be tax free and in that case line 15b would be less than 15a.For purposes of your SEPP, 15a is the critical amount that the IRS looks at. The portion that is taxable does not affect your SEPP in any way.With respect to the distribution code, Schwab is one of the few firms that still provide the exception coding on the 1099R. Not only does this eliminate the need for you to file a 5329 to claim the exception, but it somewhat reduces the chance of an IRS inquiry. That said, you should be sure that your documentation is in order regarding your original calculations in case you ever need them. They do not have to be submitted unless the IRS inquires about the amount of your distribution or some other concern surfaces about your plan.2009-01-24 04:16, By: Alan S., IP: [24.116.165.60]

L3: IRS reporting of SEPP>That said, you should be sure that your documentation is in order regarding >your original calculations in case you ever need them. They do not have to be >submitted unless the IRS inquires about the amount of your distribution or >some other concern surfaces about your plan.Exactly so. If you are ever audited or questioned by the IRS, be sure to make copies of your documentation to send them. Never turn over your original documentation, expecting it to be returned. 2009-01-24 23:50, By: Ed_B, IP: [24.20.24.188]