Guest dietpepsi Posted December 2, 2002 Posted December 2, 2002 More and more we see the DOL requesting that missing contributions and lost earnings be taken from the owner's or trustee's account. As a service provider, we are not sure if this is considered a withdrawal from the owner's/trustee's account and if a 1099R should be issued. We asked at a recent conference and the IRS seemed shocked to find out that this practice was happening and did not answer. Anybody have any thoughts?
david rigby Posted December 2, 2002 Posted December 2, 2002 What is a "trustee's account"? On what basis is DOL (or anyone) trying to take from Peter to pay Paul? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Kirk Maldonado Posted December 3, 2002 Posted December 3, 2002 PAX: You might want to read IRC Section 401(a)(13)©. Kirk Maldonado
Guest dietpepsi Posted December 3, 2002 Posted December 3, 2002 The service provider does require the trustee or owner approve the DOL's request to move money from their plan account balance, and also require spousal consent if needed. I also had not read 401(a)(13)©. This does make it sound more like an offset than a distribution so if the DOL is ordering it, it would not require a 1099R be issued. At least I think that is what I will go with until someone clarifies it further. Thanks.
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