Taxpayer Relief act of 1998

[Guest William Wichrowski]

Has anyone heard if the TPRA of 1998 includes anything that has a direct effect on 401(k) plans, CODA or DC plans?

[KIP KRAUS]

William:

Yes, TPRA affects the following areas of qualified plans:

1. Matching Contributions for the Self-Employed

2. Excess Contribution and Cccumulation Excise Taxes

3. Involuntary Cash Outs

4. Limits on investment of Elective Deferrals

5. Rollover Contributions

6. Basis Recovery Rules

7. SPD Filling Requirements

8. Electronic Disclosure

9. Antiassignment Rules

10. Prohibited Transacction Exercise Tax

11. ESOPs

12. Government Plans and nondiscrimination Compliance

13. Includable Compensation for 403(B) Plans

14. Nondeductible Contributions Excise Tax

15. Community Property Rights

16. Clarifications regarding SIMPLE Plans

17. Full Funding Limits

I would suggest that you find a copy of these provisions. In fact, I have a summary that I can fax you if you will e-mail me your fax number.

[Guest William Wichrowski]

I thought these were topics addressed by TPRA '97, not TPRA '98?

[KIP KRAUS]

You are right. Some just apply in 1998. I haven't seen any TPRA 1998 information. In fact, I'm unaware of any. If anyone else knows of separate 1998 information other than that contained in TPRA of 97, please let us know.

[This message has been edited by KIP KRAUS (edited 09-29-98).]

[Guest T Hoffman]

The 1998 IRS Restructuring and Reform Act amended Section 402 of the Code to add 401(k) hardship distributions received after 1998 to the list of distributions that do not qualify as eligible rollover distributions. This is the only relevant change I have heard of.

[Guest Muaddib]

TPRA '98 (H.R. 4579) is separate from the IRS Restructuring and Reform Act of 1998 (H.R. 2676). In reviewing the 4 versions that are currently online (in Thomas, the Congressional server) I see nothing relating to 401(k)'s in the text of the bill.