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Dos and Don'ts

When filling out the Maryland 746 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here are some dos and don'ts to keep in mind:

  • Do read the Safe Harbor Tax Notice carefully before completing the form.
  • Do provide accurate personal information, including your name and Social Security number.
  • Do consult with a tax advisor or financial professional if you have questions about your options.
  • Do sign and date the form to confirm your understanding and agreement.
  • Do keep a copy of the completed form for your records.
  • Don't rush through the form; take your time to ensure all information is correct.
  • Don't ignore the 30-day notice requirement if you plan to make a direct rollover.
  • Don't leave any sections blank; fill in all required fields.
  • Don't hesitate to reach out to a retirement benefits counselor if you have any uncertainties.

Misconceptions

Here are eight common misconceptions about the Maryland 746 form, along with clarifications for each:

  • Misconception 1: The Maryland 746 form is only for retirees.

    • This form is applicable to anyone receiving a distribution from the State Retirement Agency, not just retirees.

  • Misconception 2: You must wait 30 days after receiving the Safe Harbor Tax Notice before making a distribution.

    • The form allows for distributions to occur before the 30-day period has expired, as long as you provide your signed consent.

  • Misconception 3: Completing the Maryland 746 form guarantees a direct rollover.

    • The form is a request for distribution and does not automatically ensure a direct rollover; you must affirmatively choose that option.

  • Misconception 4: The Safe Harbor Tax Notice is optional.

    • Receiving the Safe Harbor Tax Notice is mandatory, as it informs you of your tax implications and options regarding the distribution.

  • Misconception 5: You cannot discuss the Safe Harbor Tax Notice with a financial advisor.

    • You are encouraged to review the notice with a tax advisor, accountant, or attorney to fully understand your options.

  • Misconception 6: The Maryland 746 form can be submitted without any prior review.

    • It is important to understand the implications of the form before signing. Review is highly recommended.

  • Misconception 7: The form is only relevant for traditional IRAs.

    • The Maryland 746 form applies to distributions to various eligible employer plans, not just traditional IRAs.

  • Misconception 8: You can only contact the agency during business hours.

    • The agency provides a toll-free number for inquiries, which may offer assistance outside of regular business hours.

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Key takeaways

When filling out and using the Maryland 746 form, keep these key points in mind:

  • Understand the Purpose: This form is used to acknowledge receipt of the Safe Harbor Tax Notice and to make an affirmative election regarding retirement distributions.
  • Review the Tax Notice: You should read the "SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS" carefully. It outlines important information about your options for receiving payments.
  • Consult a Professional: Take the time to discuss your options with a tax advisor or financial professional. This can help you make informed decisions about your retirement funds.
  • Timely Submission: Submit the completed form promptly. The Agency can process your distribution sooner if you provide this form, even if less than 30 days have passed since you received the tax notice.

Guidelines on Utilizing Maryland 746

Completing the Maryland 746 form is a straightforward process that helps you confirm your understanding of the Safe Harbor Tax Notice and your election regarding retirement distribution. Once filled out, this form allows the State Retirement Agency to proceed with your distribution request without making you wait the full 30 days after receiving the notice.

  1. Obtain the Form: Start by downloading or printing the Maryland 746 form from the State Retirement Agency's website or acquiring a physical copy from their office.
  2. Fill in Your Name: Write your full name in the designated space at the top of the form.
  3. Provide Your Social Security Number: Enter your Social Security number in the next section to identify your account.
  4. Review the Safe Harbor Tax Notice: Ensure you have received the "SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS" and take time to read through it carefully.
  5. Consult a Professional: If necessary, discuss the notice with your tax advisor, accountant, or attorney to clarify your options regarding the distribution.
  6. Make Your Election: Decide whether you want to make a direct rollover or not. Indicate your choice by executing the appropriate section on the form.
  7. Sign the Form: Add your signature at the bottom of the form to confirm your agreement with the information provided.
  8. Date the Form: Write the date next to your signature to indicate when you completed the form.
  9. Provide Your Address: Fill in your current address in the space provided to ensure the Agency can contact you if needed.
  10. Submit the Form: Send the completed form back to the State Retirement Agency, either by mail or in person, to initiate your distribution.

Form Preview Example

STATE RETIREMENT AGENCY 120 EAST BALTIMORE STREET BALTIMORE, MARYLAND 21202

ACKNOWLEDGEMENT OF RECEIPT OF SAFE HARBOR NOTICE AND AFFIRMATIVE ELECTION

FOR RETIREMENT USE ONLY FORM 746 (REV. 4/03)

Name:

 

Soc. Sec. No. :

The Internal Revenue Service has advised the State Retirement Agency (the "Agency") that it must provide you with the Safe Harbor Tax Notice entitled "SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS" no earlier than 90 days and no later than 30 days before a payment is made to you. If, after receiving the Safe Harbor Tax Notice, you affirmatively choose to make or not make a direct rollover, then the distribution may be made to you even if the 30 day period has not expired.

So that you are not required to wait 30 days after receipt of the Tax Notice, the Agency will make the distribution in accordance with Agency procedures to you or to the trustee of your traditional IRA or Eligible Employer Plan upon receipt of this form signed by you to evidence your agreement to the following matters:

1.That you have received the Safe Harbor Tax Notice entitled "SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS" from the Agency;

2.That you have had an opportunity to review it with your tax advisor, accountant, attorney or the IRS and understand your options with respect to receipt of a distribution from the Agency at this time;

3.That you affirmatively chose to make or not make a direct rollover by executing the appropriate Agency form; and

4.That you request the Agency to make a distribution of the funds in accordance with your instructions and you understand that the payment may be made less than 30 days after you received the Safe Harbor Tax Notice.

If you have any questions about this form, before signing it, telephone a retirement benefits counselor at 410-625-5555 or toll free at 1-800-492-5909.

ALL OF THE ABOVE IS AS AGREED:

Signature:Date:

Address:

Common mistakes

  1. Not reading the Safe Harbor Tax Notice: Many individuals overlook the importance of thoroughly reading the Safe Harbor Tax Notice. This document contains crucial information about your options and the implications of your decisions regarding retirement distributions.

  2. Failing to consult with a tax advisor: It’s common for people to skip the step of discussing their options with a tax professional. Consulting with an accountant or tax advisor can provide clarity and help you make informed choices that align with your financial goals.

  3. Incorrectly completing personal information: Errors in entering your name or Social Security number can lead to significant delays. Ensure that all personal details are accurate and match the information on your official documents.

  4. Not indicating a choice for direct rollover: Some individuals forget to explicitly state whether they want to make a direct rollover or not. This choice must be clearly indicated on the form to avoid confusion and ensure the correct processing of your request.

  5. Ignoring the 30-day waiting period: A common misunderstanding is the belief that the distribution cannot occur until the 30-day period has elapsed. In fact, if you affirmatively choose to proceed, the Agency can process your distribution sooner.

  6. Not keeping a copy of the submitted form: After completing the form, it’s essential to keep a copy for your records. This can serve as proof of your request and help resolve any potential disputes in the future.

Free Maryland 746 PDF

Learn More on This Form

What is the purpose of the Maryland 746 form?

The Maryland 746 form serves as an acknowledgment of receipt of the Safe Harbor Tax Notice. This notice provides important information regarding your options for receiving retirement plan payments. By signing this form, you confirm that you understand the implications of your choices related to direct rollovers and distributions from your retirement account.

What is the Safe Harbor Tax Notice?

The Safe Harbor Tax Notice, titled "SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS," is a document that outlines the tax implications and options available to you when you receive a distribution from your retirement plan. It is essential to review this notice carefully, as it explains your choices regarding direct rollovers and how they may affect your tax situation.

How long do I have to wait after receiving the Safe Harbor Tax Notice before my distribution can be processed?

You typically must wait 30 days after receiving the Safe Harbor Tax Notice before a distribution can be made. However, if you sign the Maryland 746 form and affirmatively choose to proceed with the distribution, the Agency can process your request before the 30-day period has expired.

What should I do if I have questions about the Maryland 746 form?

If you have questions or need clarification about the Maryland 746 form, it is advisable to contact a retirement benefits counselor. You can reach them at 410-625-5555 or toll-free at 1-800-492-5909. They can provide you with the information you need to make informed decisions regarding your retirement benefits.

What happens if I do not sign the Maryland 746 form?

If you do not sign the Maryland 746 form, the State Retirement Agency will not be able to process your distribution request. Signing the form is necessary to confirm your understanding of the Safe Harbor Tax Notice and your decisions regarding the distribution of your retirement funds.

Can I review the Safe Harbor Tax Notice with a financial advisor?

Yes, you are encouraged to review the Safe Harbor Tax Notice with a tax advisor, accountant, attorney, or the IRS. Understanding your options and the potential tax implications is crucial before making any decisions regarding your retirement distribution.