This message has been cross posted to the following Discussions: NASSAUSUFFOLK and Federal Tax .
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I have a client that is a member of the NYC Electrician's Union
He collects from the "Deferred Salary Plan of the Electrical Industry' monies when is is "furloughed" or "laid off" during the year (so other union electricians can work) or when on vacation
The plan issues a 1099-R showing gross distributions and federal withholding tax (No NYS withholding) each year which shows in box 7 "distribution code" one "early distribution, no known exception".
Is this the correct form that should be issued?
I think that these funds should be reported on a W-2
If this is compensation, not a pension/profit sharing distribution, why is this reported on a 1099-R
Should I and my client speak to the union in the morning?
Any suggestions
David J Rothfeld
516-433-2128
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David Rothfeld
DAVID J. ROTHFELD, CPA
Hicksville NY
516-433-2129
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