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Year End Timeline for 2007/2008 FAQ
for MG Trust Year-End Taxes
This information is being provided to answer frequently asked questions
regarding the tax remittance process of MG Trust Company, LLC (MG
Trust).
MG Trust processes distribution checks for employer sponsored retirement
plans at the request of the Designated Representative – either
a Third Party Administrator or Recordkeeper - who services each plan.
MG Trust will withhold the specified amounts of Federal or State
Taxes from the distributions as instructed by the Designated Representative. Federal
tax is remitted daily. State tax is remitted according to individual
state schedules.
MG Trust Year End Timeline for 2007/2008
Who is MG Trust Company LLC and why did you send me a
1099 (R, DIV or B)?
Why did I receive a 1099-R for my account?
Why was money withheld from my retirement account redemption?
Where do I report this information on my individual
tax return?
What is a Form 1099?
What do I need to know about Form 945?
What is the Tax ID Number for MG Trust Company LLC?
Why did I receive a 1099- DIV for my account?
Why did I receive two copies of my 1099-R?
How do I reclaim federal or state taxes withheld from
my distribution?
When will year end statements be available on the website?
When will year end statements be mailed?
12/25/2007 – MG
Trust will be CLOSED for the holiday. No deposits
released this evening.
12/31/2007 – DEADLINE -
Disbursement files received by 12:30 MST will be processed and receive
1099 if applicable. There is a 2:00 MST deadline for disbursement
requests submitted on the Workflow Management System. (These
are normal deadlines for distributions)
- No federal or state taxes can be remitted for the 2007
tax year after this date
- No federal refunds can be processed after this date
01/01/2008 – MG
Trust will be CLOSED for the holiday. No deposits
released this evening.
01/09/2008 – Year-end STATEMENTS mailed
to Plans and available on website www.mgtrustonline.com TPA
and 3rd party copies to be completed and mailed by 1/16/2008.
- All Trustee accounts will receive an ANNUAL statement.
- If established, Custodial accounts will receive either an ANNUAL
or QUARTERLY statement (NOTE: if an account is set up to receive
quarterly statements AND an annual statement, they will receive
only the annual statement).
01/11/2008 – DEADLINE for changes/corrections
to make the 1099 PRINT file.
- All corrections from this point are billable to the TPA.
01/19/2008 – 1099
print file released to print vendor. All forms will be mailed by
the IRS deadline of 1/31/2008.
1/21/2008 – Martin Luther King
Jr. Day. MG Trust Closed.
01/31/2008 – 1099
forms available on website.
02/02/2008 – First PRINT
CORRECTION* file generated.
03/07/2008 – Last PRINT
CORRECTION* file run. After this all corrections processed
will be sent to the IRS as CORRECTED.
03/10/2008 – DEADLINE for
corrections/changes to be part of the original IRS 1099 file.
03/17/2008 – 1099
file released to IRS. Deadline for receipt is 3/31/2008.
03/21/2008 – Good Friday. MG
Trust Closed.
04/05/2008 – First TRUE
CORRECTION** file generated to the IRS.
05/19/2008 – 5498
forms mailed.
* PRINT CORRECTION – After the original print
file is sent for distribution and before the IRS file is submitted
for reporting, there is a period of time where corrections made to
forms will appear as original records to the IRS. We refer to these
as PRINT CORRECTIONS. The recipients of the forms will see the box
for CORRECTED is checked.
** TRUE CORRECTIONS – All corrections made
after the 1099 file is uploaded to the IRS will be marked CORRECTED
on the form and reported as corrections to the IRS.
A. MG Trust Company provides Trustee and Custodial services
for many qualified retirement plans and other defined contribution
plans. We process distributions and create the appropriate tax form
in accordance with instructions originated by your Plan Administrator
or record keeper. The plan name from which your distribution occured
is printed below our name and address on the 1099 form. For specific
questions regarding your distribution, please contact your Human
Resources department or Plan Administrator.
A. Federal regulations require that you report proceeds from redemptions
(including removals of excess deferrals/contributions) on your retirement
accounts. You are required to send in this form with your federal
income tax return.
A. MG Trust provides Trustee and Custodial services for many qualified
retirement plans and other defined contribution plans. We process
distributions and create the appropriate tax form in accordance with
instructions originated by your Plan Administrator or record keeper.
The plan name from which your distribution occured is printed below
our name and address on the 1099-R form. For specific questions regarding
your distribution, please contact your Human Resources department
or Plan Administrator.
(For your information: Federal law requires 10% withholding
on distributions from retirement accounts, unless instructed otherwise
by the participant. This serves as a prepayment of your income tax
and is not to be confused with any IRS penalties for premature withdrawals.
Additionally, if this was a distribution from a qualified plan, federal
law requires 20% withholding on most distributions that are not direct
rollovers to another custodian; this 20% withholding should not be
confused with any IRS penalties.)
A. You may need to obtain IRS Form 5239 if this was a premature
distribution. Consult your tax advisor if you need assistance deciding
if this applies to your situation.
Generally, all distributions from pensions, annuities, profit-sharing
and retirement plans (including section 457 state and local
government plans), IRAs, insurance contracts, etc., are reported
to recipients on Form 1099-R. The plan custodian sends the form
to the owner of a plan if he or she has made distributions
of $10 or more from the plan in a given year. The
form is mailed to recipients by January 31 of the year after the
distribution was made. In some cases, the individual may
need to attach a copy of Form 1099-R to his or her tax
return. The plan owner, the IRS and the municipal or state tax department
(if applicable) all receive a copy of the form. Please consult
a tax advisor regarding how to report the information received or
a 1099R.
A. 1099 forms are created and issued by January 31st each year and
mailed to each participant receiving a distribution for that tax
year. Copies of all 1099’s are filed with the IRS by March
31st of each tax year. All 1099 forms are uploaded electronically
to the IRS. A 1096 form is not prepared as this form is only
required for manual form submission.
All tax reported on the 1099 forms is reconciled to the Form 945
information return and to the tax remittances submitted to the IRS.
A. All tax payments for taxes withheld by MG Trust are submitted
under MG Trust’s tax ID number to the IRS and or state tax
agencies. Information Returns are also filed with each tax agency
under MG Trust’s tax ID number, including the Federal Form
945. All tax forms are filed showing MG Trust as the payor. Annually,
a single Form 945 is filed with the IRS for all tax remitted by MG
Trust. Separate 945 forms per plan are not prepared. A plan
can notify the IRS in writing stating our capacity (ex: agent, custodian,
trustee); further explaining our use of an omnibus account (MG Trust
TIN) resulting in a combined Form 945 instead of an individual form
for their plan.
Please note: Form 945 filed for plan years 2002, 2003, and
2004 were reported under the EIN of Matrix Capital Bank Trust Services,
01-0609808. MG Trust filed two Forms 945 for 2005. All
distributions and withholdings processed in 2006 were done under
our new EIN, 75-3182674.
A. The Tax ID Number for MG Trust LLC is 75-3182674.
A. Dividends or distributions under section 404(k) on stock held
by an employee stock ownership plan (ESOP) or a tax credit ESOP are
reported on Form 1099-DIV. If a section 404(k) distribution is made
in the same year as a total distribution from the ESOP, you will
receive the dividends on Form 1099-DIV and the remaining amount on
Form 1099-R.
A. You receive two copies of your 1099-R so that you may provide
those copies to different agencies. The first copy is filed with
your federal taxes. The second copy is for your own records, or should
be used if you are required to file taxes with your particular state.
A. Please consult your tax advisor. Taxes withheld on your behalf
can only be refunded to you by the IRS, or appropriate state, as
part of your annual return. MG Trust is unable to recover or refund
taxes withheld for previous tax years.
A. Year end statements are scheduled to be available on http://www.mgtrustonline.com by
1/14/08.
A. Year end statements are scheduled to be mailed by 1/16/08.
If additional information is needed, questions may be addressed
to MG Trust at: service@mgtrustonline.com or
call our service line at 1-888-947-3472.
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