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N
netty6169
February 6, 2025
Question

Why is our employer issued 1099-R for a new ESOP program stating we would have to pay tax this one time, but there is no reduction in refund when info is entered?

  • February 6, 2025
  • 1 reply
  • 0 views
We did not receive any distributions, but employer stated that we needed to file in order to pre-pay tax

    1 reply

    D
    dmertz
    Employee
    February 6, 2025

    Is this a Roth ESOP?  An employer contribution to a Roth ESOP is a tax deduction for the employer but is taxable to the employee since it will not be taxed again when distributed from the Roth ESOP to the employee.

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