FAQs: Defined Contribution Plan (including a money purchase pension plan)
1. Do I report my federal Thrift Saving Plan (TSP) account?
No. Do not report participation in a United States Government retirement plan.
2. I was not required to report my defined contribution plan in Part 2 because all of the underlying assets were below the value threshold and I am not receiving distributions. Do I still report my defined contribution plan in Part 3?
Yes. Part 2 and Part 3 have different and independent reporting thresholds. Continued participation in a defined contribution plan is reportable in Part 3 regardless of the value of the underlying assets.
3. All of the underlying assets of my defined contribution plan are below the value threshold and I am not receiving distributions; however, I still want to report the plan in Part 2. How would I do that?
This over reporting is not necessary. However, you would report this plan, as follows:
Description: Provide the name of the employer. Write “defined contribution plan” or specify the type of defined contribution plan, such as “401(k)” or “403(b).” Following that general description, write “underlying assets below reporting thresholds.”
Value: Select the category that corresponds to the value of your interest in the overall plan.
Income Amount: Select the category for “None (or less than $201).”
Note that OGE does not treat tax-deferred income accruing within a retirement plan as having been received because of the limitations on withdrawal and other regulatory requirements governing such plans. You, however, would report distributions as having been received.
4. When I report my retirement account distributions, may I subtract the cost basis?
For purposes of measuring the amount of income received, you may subtract from the distribution any portion that constitutes an investment into the plan or account of previously received income. In most cases, though, filers will find it easiest to use the total amount of a distribution during the reporting period.