The benefits provided. The time and method of making employee elections. Salary reduction contributions are subject to Social Security, Medicare, railroad retirement and federal unemployment tax. Within 30 days after the end of each calendar year, a trustee must give each participant a statement showing the account activity during the year and the account balance at the close of the year. Form 5498 has been modified accordingly.
Special rules apply to self-employed individuals, including partners in a partnership.
Far Out Corporation's tax year ends on November 30. Far Out may claim a deduction for its contribution on its federal income tax return for the taxable year ending on November 30, 2000. Complexity Corporation's tax year ends on November 30. Complexity filed Form 8736 and received an automatic six-month extension to file its federal income tax return.