Fredman

I agree with the above and would add that if there is a change of the plan's trustee, the old trustee should assign the loan note to the new trustee.

IMO, I don't think this needs to be redeposited back into the plan. It looks to me this is more of an administrative issue than plan issue. How 'bout treating this in the same manner as if the check was lost for two years? The participant was in constructive receipt of their balance when the check(s) were cut the first time. If you agree with this argument, you could have the original trustee send a check to IRA A and correct the 1997 1099-R to reflect a rollover of the total distribution. Depending on how IRA A wants to handle the 5498 will determine how much "explaining" the participant will have to do on their return/ammended return. As far as missed earnings, you'll need to determine who's at fault and who's willing to admit it. Obviously the original trustee holds some responisbility, but why did IRA B hold on to it for two years and why didn't the participant realize some of their money was missing.

These three disclaimers are common in today's banking industry. Its sometimes assumed that since I'm buying a bank product, it must be guaranteed or insured against loss. This is true for checking and savings accounts (up to certain limits) but not for investment/brokerage type accounts. If you open a Roth IRA at a mutual fund company, they won't guarantee it - same thing with banks. Their disclaimer might not be as bold or to the point, but then again nobody has ever expected a guarantee from them. Good Luck.

Assuming this is a 12/31 year end... 1. These distributions should be reported on a 1999 1099-R which needs to be mailed no later than January 31, 2000. They should be coded with a distribution code of 'P' which designates that the distribution is taxable in the prior year (1999 tax form + taxable in prior year = taxable in 1998). Personally, in my limited experience, I haven't seen 1099-Rs mailed earlier than January. Has anyone else? 2. Participants don't have to wait until the year 2000 to correctly file their 1998 tax return. Its my opinion to give the HCEs the information they need to file their 1998 tax return as early as possible. Whether they choose to use it will be up to them. See some other opinions about this in the discussion thread titled "Failed ADP". Its about 14 messages below this one. 3. There's no relation between the 3/15 deadline and the 1099's being mailed in January. I'll leave it to others to explain why the 3/15 deadline.

Whoa, I'm missing something here...the original post says, "He was receiving RMDs at single life, recalc'd each year." Even if the IRA owner was entitled to a joint calculation when he turned 70 1/2, he (I'm assuming) elected single calculation. What allows the calculation to be changed to joint now that he has passed? [This message has been edited by Fredman (edited 03-23-99).]

You should be able to find a local bank that's willing to use Vanguard funds. I know that banks in my area are willing to use different fund families and also offer recordkeeping services, local service, trustee services, etc...

I concur that the ER is making a bad decision by accepting the advice of the CPA and agree that its best for you cover your tracks (to put it nicely). I think a letter from you to the ER and possibly the CPA explaining your position would be appropriate. If you can get a letter from the ER that's even better. As far as dropping your client, it probably depends. Have you been looking for a reason to drop the client? As long as you have your documention, the IRS should go after the ER or Trustee of the plan, not your company. Heck, I've seen RKer's base their entire business on doing WHATEVER the client wants as long as "it was in writing". Good Luck. [This message has been edited by Fredman (edited 02-18-99).]

We currently use the SunGard STATs recordkeeping system and are considering converting to a new system. All of our plans are balance forward, but we are planning to go daily in the future. Any pro/con comments for Quantech, Datair or whatever else you use would be appreciated. Thanks.

Do amounts coverted from regular IRAs to Roth apply towards satisfying MRDs? Example: $300,000 IRA account balance, $50,000 converted to Roth IRA in 1998, MRD for 1998 is $30,000. Is the 1998 MRD for the regular IRA satisfied? Thanks. [This message has been edited by Fredman (edited 12-01-98).]