1 See Institute memorandum to Pension Committee No. 19-99 and Pension Operations Advisory Committee No. 19-99,
dated March 22, 1999. Primary bill sponsors are Senators Roth and Baucus.
2 See Institute memorandum to Pension Committee No. 14-99 and Pension Operations Advisory Committee No. 14-99,
dated March 16, 1999. Primary bill sponsors are Representatives Portman and Cardin.
[10944]
April 29, 1999
TO: PENSION COMMITTEE No. 32-99
PENSION OPERATIONS ADVISORY COMMITTEE No. 30-99
RE: MAY 6TH CONFERENCE CALL ON ""ROTH 401(K)""/""PLUS""
ACCOUNTS PROPOSAL
______________________________________________________________________________
We have scheduled a conference call for Thursday, May 6 at 2:30 p.m. EST to
discuss proposed legislation that would create so-called “Plus” accounts within
401(k)/403(b) plans. This call is a follow-up to a discussion initiated on an April 26
conference call. In that call (in which several legislative issues were discussed), we
identified several areas in which the “Plus” account proposal might be improved. In this
May 6 call, we will seek to identify specific solutions to previously identified concerns
and to identify additional issues arising from the proposal.
Specifically, April 26 call participants suggested that the legislation should
include ordering rules describing the extent to which plan withdrawals/distributions are
treated as coming from a participant’s traditional 401(k)/403(b) account or “Plus”
account. Second, a similar allocation issue arises for distribution of excess contributions
or corrective distributions. There also may be concerns regarding nondiscrimination
testing, reporting, and rollovers rules.
The “Plus” proposal is at section 201 of S. 6461 and section 112 of H.R. 1102.2
Please review the proposal before the call.
Call-in information to participate is provided on the attached attendance form.
Russell G. Galer
Senior Counsel
________________________________________________________________________
Attendance Form for Institute’s Conference Call on
“Roth 401(k)” Proposal
Thursday, May 6, 1999 – 2:30 p.m. EST
Please fax this form by Wednesday, May 5, 1999 to Melanie Washington at (202) 326-5841.
Yes, I will participate on the “Roth 401(k)” Conference Call on Thursday, May 6, 1999
at 2:30 p.m. EST. To participate in the call, dial 1-888-262-7259 and ask for the “Roth
401(k)” call (confirmation number #1514860.
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Conference Call Attendee Company Phone