randagulp

I think I've found it... For anyone that was interested, 1.409A-3(j)(2) talks about "amount previously deferred." Thanks.

We are amending our plan to allow unforeseeable emergencies as permissible payments. Does anyone happen to know whether, after the amendment, a participant can withdraw amounts from before the amendment? Or does the amendment only allow payments of amounts deferred after the amendment? Does it matter if the emergency occurred before or after the amendment? Any guidance would be greatly appreciated. Thanks.

Participant wants to purchase rental property as an investment in his self-directed 401(k) account. Just throwing this out there, but does anyone suggest any good sources that cover the issues related to this sort of transaction? Any books, articles, IRS guidance, etc., that talk about the aspects of this transaction as the property is brought in the trust, issues while it is held in the Plan trust, issues that arise when the property is disposed by the trust, how the property is valued for ERISA and 5500 purposes, how the property can/cannot be used by the participant, etc.? Thanks in advance.

Representing the bank. We do not want a prohibited transaction, so I agree, the picture we want to paint is that the IRA simply distributed Stock A to the manager. I was just hoping that by some stroke of luck someone had come across an ERISA case or official DOL/IRS guidance supporting our position, as my research has turned up nil. There might just not be anything out there... Thanks for all the responses.

I agree with you both. Any legal guidance here? Does there need to be a deemed distribution of the IRA because this was a prohibited transaction? (See Code Sec. 408(e)(2)). Any DOL/IRS sources I can look to for examples? Thanks.

I understood it as follows: The manager ordered the sale of certain stock (we'll say Stock A), which was sold from various accounts he managed. To ensure the sale took place, the manager had placed a "back-up" order for the sale, which he forgot to cancel. This resulted in the bank selling twice as much Stock A as intended. When he realized the error, the manager directed the bank to debit the Stock A in his personal IRA to "cover" the second sale. Essentially, he used the Stock A in his own IRA to make the bank whole, as the bank had sold assets it wasn't supposed to. I have no idea why the investment manager decided to take the loss upon himself. He's currently acting as an independent contractor for the bank, and was brought on fairly recently, so best I can guess is that he was embarrassed at the gaffe and didn't want to report it, so tried to cover it himself.

-investment manager/broker for bank screws up by executing a trade twice -gets the administrative people at the bank to fix the loss by carrying out transaction on his own personal IRA -is this a prohibited transaction? has he "dealt with the assets of a plan for his own account"? Also, where is the best place to find examples of prohibited transactions in self-directed IRAs? ERISA cases, DOL Advisory Opinions, Private Letter rulings? I'm having trouble finding official sources that give examples. Thanks in advance for any responses.

Great, so it looks like it is possible (though I still haven't been able to find the rule/reg that governs how this treatment is made). Anyways, thank you very much!

So I know that a surviving spouse of a qualified plan can rollover an eligible rollover distribution to the spouse's IRA, and the account will be subject to the surviving spouse's RMD rules. However, doesn't this mean that if the spouse is older than the decedent, the rollover will cause RMDs to occur earlier than they need to (that is, at the spouse's, and not the decedent's RBD)? Is there any way for the surviving spouse's IRA to be treated as an inherited IRA and remain subject to the decedent's RBD? Thanks...