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 federal government retirement plan.

2. Do I report tax deferred income?

Yes. You need to report dividends, interest, and other income that accrued on your defined contribution plan’s assets even though this income is tax deferred.

3. Do I report withdrawal payments from my defined contribution plan?

No. Do not report such payments. Any payments withdrawn from a defined contribution plan are merely distributions from investment income.

4. I was not required to report my defined contribution plan in Schedule A because all of the underlying assets were below the value ($1,000) and income reporting thresholds ($200). Do I still need to report my defined contribution plan in Schedule C, Part II?

Yes. Schedule A and Schedule C, Part II have different and independent reporting thresholds. Continued participation in a defined contribution plan is reportable in Schedule C, Part II regardless of the value of the underlying assets.

5. All of the underlying assets of my defined contribution plan are below the value and income reporting thresholds; however, I still want to report the plan in Schedule A. How would I do that?

This over reporting is not necessary. However, you would report this plan, as follows:

Block A: 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).” Below that general description, write “underlying assets below reporting thresholds.”

Block B: Mark the column that corresponds to the value of your interest in the overall plan.

Block C: Mark the “Amount” column that corresponds to the amount of income produced during the reporting period. If the amount of income is more than $200, you also need to report the type of income by marking the applicable “Type” column(s). 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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