Did You Know That There Are Events In Life That May Have A Significant Tax Impact?

Many Times We Experience Significant Life Events That Have A Tax Impact. This Page Is Designed To Help You While Explaining To Individuals The Tax Impact Of These Events.

ILA Members May Eligible To Take Tax Credit For Contributions To HRSA-ILA Savings & Annuity Plan.

IRS Tax Topic 610. With The Passage Of The Pension Protection Act, The Savers Tax Credit Has Been Made Permanent. ILA Members Can Take A Credit Of Up To $2000 For Contributions To The HRSA-ILA Savings And Annuity Plan.

This Credit Is In Addition To Other Tax Benefits Which May Result From Voluntary Contributions To The HRSA-ILA Savings And Annuity Plan. Contributions To A 401(K) Plan Are Not Subject To Income Tax Until Withdrawn.

The Retirement Savings Contributions Credit Applies To Individuals With Incomes Up To $25,000 ($37,500 For A Head Of Household) And Married Couples, Filing Jointly With Incomes Up To $50,000. This Is Subject To Revision For Inflation In The 2006 Tax Year.

For more information, review IRS Publication 590 Individual Retirement Arrangements (IRAs) and Form 8880 , Credit For Qualified Retirement Savings Contributions Which Include The Instructions. The Publication And Forms Can Be Downloaded At IRS.Gov Or Ordered By Calling 1-800-TAX-FORM (1-800-829-3676).

ILA Members Are Subject To Additional Tax When Taking Retirement Prior To Age 59 1/2.

To Discourage The Use Of Pension Funds For Purposes Other Than Normal Retirement, The Law Imposes An Additional 10% Tax On Certain Early Distributions Of These Funds. Early Distributions Are Those You Receive From A Qualified Retirement Plan Or Deferred Annuity Contract Before Reaching Age 59 1/2. For More Information, Review IRS Tax Topic 558 Tax on Early Distributions from Retirement Plans and Publication 575 Pension and Annuity Income.

ILA Members Could Be Subject To Additional Tax When Taking Rollovers Or Lump Sum Distributions
From Pension Plan Or Savings & Annuity Plan.

A Rollover Occurs When You Withdraw Cash Or Other Assets From One Eligible Retirement Plan And Contribute All Or Part Of It Within 60 Days To Another Eligible Retirement Plan. This Transaction Is Not Taxable But It Is Reportable On Your Federal Tax Return. You Can Roll Over Most Distributions Except For:

1. The Nontaxable Part Of A Distribution, Such As Your After­Tax Contributions To A Retirement Plan (In Certain Situations After, Tax Contributions Can Be Rolled Over),
2. A Distribution That Is One Of A Series Of Payments Based On Your Life Expectancy Or The Joint Life Expectancy Of You And Your Beneficiary Or Paid Over A Period Of Ten Years Or More,
3. A Required Minimum Distribution, Or
4. A Hardship Distribution.

For Further Information About Rollovers And Transfers, Refer To Publication 575 .

ILA Members Are Subject To Income Limitations For Traditional And Roth IRAs In 2010 Tax Year.

Information on IRA Contribution Limits Here. For more information, review IRS Publication 590 Individual Retirement Arrangements (IRAs)

Forms:

The following forms are in PDF format which can be opened only by Adobe Acrobat. If you do not currently have Adobe Acrobat or Acrobat Reader on your computer you can obtain a free copy of Acrobat Reader by clicking on the yellow button below. Follow the instructions that are on Adobe's page. Once you have Acrobat Reader on your computer, click on the link for the form.

The following forms are used by of our members. Download direct from the IRS or VA / NC Department of Taxation web site.

Federal Forms:

Form W-4 Federal Withholding Certificate.
Form W-4P Federal Withholding Certificate For Pension or Annuity.
Form W-4S Federal Withholding Certificate For Sick Pay.
Form W-4V Voluntary Federal Withholding Certificate.
Form W-9 Request for Social Security Number. This form is used when you need to submit a Social Security Number to receive a benefit payment, such as a Pension, Life Insurance or other benefit.
Form 8880 Credit for Qualified Retirement Savings Contributions.

Federal Instructions:

Instruction 4972 Tax on Lump-Sum Distributions From Qualified Retirement Plans.
Instruction 5329 Additional Taxes Attributable to IRAs, Annuities, or Other Qualified Retirement Plans.
Publication 579 Pension and Annuity Income.
Publication 590 Individual Retirement Arrangements (IRAs).
Publication 915 Social Security and Equivalent Railroad Retirement Benefits.
Publication 939 General Rule for Pension and Annuities.

Virginia State Forms & Instructions:

Virginia VA-4 Virginia State Personal Exemption Worksheet.
Virginia VA-4P Virginia State Personal Exemption Worksheet For Pension.
Form 760 Virginia Individual Income Tax Return.
Form 763 Nonresident Individual Income Tax Return.

File Your Virginia Taxes Online Welcome to VATAX Online for Individuals .

North Carolina State Forms & Instructions:

North Carolina NC-4 North Carolina State Withholding Allowance Certificate.
North Carolina NC-4P North Carolina State Withholding Allowance Certificate For Pension.
D-400 North Carolina Individual Income Tax Return.

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This Page Last Updated On 11/01/09, And Is Current As Of