Examples of the retirement plan records contemplated under the second rule include participant census information (i.e., dates of hire, termination, and re-hire, compensation, hours of service, etc.); participant election and beneficiary forms; actuarial valuations (if applicable); distribution amounts and dates, completed distribution forms (including, if applicable, spousal consents), and Forms 1099R
; annual accounting reports (specifically individual participant account records); trust accountings; and executed plan documents and documents for associated funding arrangements (i.e., trust agreements or annuity contracts).
In addition to using Forms 1099R
and Form 1040, we also use Form 5498, which tracks contributions to IRAs, makes it possible to observe when taxpayers receive a (potentially taxable) distribution, but then avoid the tax and early withdrawal consequences by rolling the money directly into another qualified account within 60 days.