Topic: Deemed Distribution
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Answers to Common Questions
What does deemed distribution means?
It means that if you do not pay it back it will be considered a distribution and you will get hit with taxes and penalties. Read More »
Source: http://answers.yahoo.com/question/index?qid=20071026195617AAUhGhU
What does "deemed distribution" on a 401k mean?
it might mean if you take a loan and later leave the company before you've paid it back, the unpaid balance will be considered a distribution, that would be taxable income to you, plus 10% early withdrawal fee if you're under 59-1/2 Read More »
Source: http://answers.yahoo.com/question/index?qid=20070715202227AAxoetm
What can be done to remedy a default after there has been a deeme...
If a participant failed to make payments on a plan loan, the missed payments can still be made even after a deemed distribution has occurred. In that case, the participant’s or beneficiary’s tax basis under the plan is increased by the amou... Read More »
Source: http://www.irs.gov/retirement/article/0,,id=162415,00.html
More Common Questions
Answers to Other Common Questions
Section 414(u)(12)(B) applies only for purposes of the provisions of §§ 401(k), 403(b), and 457(d) that permit distributions on severance from employment. Thus, for example, in the event an individual is treated as severed from employment u...
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Source: http://apps.irs.gov/irb/2010-06_IRB/ar09.html
a) Difference between deemed distribution and plan loan offset amount.
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Source: http://www.fdic.gov/regulations/examinations/trustmanual/appendix...
The amount includible in income as a result of a deemed distribution under section 72(p) is required to be reported on Form 1099-R (or any other form prescribed by the Commissioner).
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Source: http://www.fdic.gov/regulations/examinations/trustmanual/appendix...
a) In general. A loan to a participant or beneficiary from a qualified employer plan will not be a deemed distribution to the participant or beneficiary if the loan satisfies the repayment term requirement of section 72(p)(2)(B) , the level...
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Source: http://www.fdic.gov/regulations/examinations/trustmanual/appendix...
a) Deemed distribution. For purposes of section 72, a deemed distribution occurs at the first time that the requirements of Q&A-3 of this section are not satisfied, in form or in operation. This may occur at the time the loan is made or at ...
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Source: http://www.fdic.gov/regulations/examinations/trustmanual/appendix...
a) Timing of deemed distribution. Failure to make any installment payment when due in accordance with the terms of the loan violates section 72(p)(2)(C) and, accordingly, results in a deemed distribution at the time of such failure. However...
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Source: http://www.fdic.gov/regulations/examinations/trustmanual/appendix...
