Moe Howard

I borrowed $90,000 form my partnership's profit sharing plan in 1981. I am a 50% partner. According to the promissory note, I was supposed to pay monthly installments over a 20 year period .... but I made one annual payment at the end of each year (rather than 12 separate monthy payments). I finally paid the entire 35,000 balance off last year. Now I'm trying to determine if the $90,000 was a distribution to me in 1981 (because I may not have followed all the rules). Just one problem ... I can't figure out what the rules are. I've been searching the tax code, ERISA and old tax reform acts for the past four days and I'm as confused as h*ll. It's easy to find the rules presently in effect, but what about the rules that existed in 1981 (that's the hard part). Here's my questions: 1) It's my understanding that ALL partnership plans are prohibited from making loans to it's partners. (What about my situation ?) 2) It's my understanding that loans are currently supposed to be limited to $50,000. (What about in 1981 ?) 3) It's my understanding that effective 01/01/87, the Tax Reform Act of 1986 amended IRC Sec 72(p)(2) by requiring that all note payments be at least quarterly. (What about my 1981 loan...was I supposed to start making quarterly payments beginning 01/01/87 ?) 4) What is so special about the date "August 13,1982" ? Is that like the date that IRC 72(p) was born into existence. (If so, then was I even required to follow IRC 72(p) on my note since it originated prior to August 13, 1982?) 5) Did any tax code require that I pay this 1981 loan back within 5 years (or is the 5 year requirement simply a new rule that didn't exist back in 1981?) 6) Does anyone know of a web.site that simply & clearly lays out in chronological order all the amended, superseded and current tax rules of defaulted plan loans ? Hey ...thanks for reading my questions. I don't know if anyone out there can answer them, but I sure hope so.

An employee quits his job and has the choice of rolling his vested Profit Sharing distriution into his personal IRA or rolling it over into his new employer's profit sharing plan. If he chooses to roll it into his IRA, then he can later roll that IRA over again into another IRA (after a one-year period has lapsed, according to the tax code) HERE'S MY QUESTION: If he had choosen to roll the Profit Sharing distribution into his "new employer's" profit sharing plan, then does the tax code allow him (withhot penalty) to re-roll it from his "new employer's" plan to an IRA (several years later) while still employed with the new employer ? (Assume the participant is UNDER age 59 1/2).

A plan has valued its assets and is supposed to make a lump-sum distribution to a 100% vested terminated participant within the next 60 days. However, one of the plan's assets ( a Receivable) happens to be the prior year contribution that is currently receivable from the employer. The terminated participant demands his full lump-sum distribution within the next 60 days (just like it says in the Summary Plan Description). However, the plan won't receive that prior year contribution from the employer corporation for another 5 months (the corporate employer's prior year income tax return has been extended & the corporation won't be paying that contribution to the plan until 5 more months). What is the Plan supposed to do in order to comply with the 60 day deadline as stated in the Summary Plan Description? How can the Plan distribute an asset that it does not yet have in it's possesion. Is the Plan even required by ERISA to include the receivable in it's annual valuation ?[Edited by Moe Howard on 08-18-2000 at 07:52 PM]

A medical doctor practices two separate specialities (general surgery & family practice). He is a 50% partner in a two man member PLLC (which only performs general surgery)... the PLLC has a KEOGH-MPPP. He also practices family medicine as a sole-proprietor ...which has a defined contribution SEP. The partnership & sole-proprietorship are NOT related in any way (regarding services or billing or location etc.). QUESTION: Can he contribute $30,000 to each of the two plans in the same year (a total tax deduction of $60,000) ?? OR must the two entities (partnership & sole-propritorship) be aggregated and deemed a "single employer" ? A tax code or court case would be much appreciated.