Save time with our cheat sheets, fact sheets, checklists & books!

February 23, 2009

Gap Income

Your Guide

Print

Definition

Also referred to as gap-period income.

Income accrued after the close of the plan year and prior to the distribution being processed to the participant.

Referring Cite

Treas Reg §§1.401(k)-2(b)(2)(iv)(D), 1.401(k)-2(b)(2)(viii),

Additional Helpful Information

  • Safe harbor method of allocating gap period income. –A plan may use the safe harbor method in this paragraph to determine income on excess contributions for the gap period.
  • Alternative method for allocating plan year and gap period income. –A plan may determine the allocable gain or loss for the aggregate of the plan year and the gap period by applying the alternative method .
More

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules
Change