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trustee/custodian error busts SEPP plan

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ByJEVD

L1: trustee/custodian error busts SEPP plana trustee/custodian error over distributes in 2007. 60 period elapsed for rollover. The transaction does not fit into automatic waiver & extension of 60 day period. Is the only way around this a PLR? I believe that to be the case but any additional input would be appreciated.2008-03-14 08:59, By: jevd, IP: [204.15.168.100]
L2: trustee/custodian error busts SEPP planGet the trustee/custodian to admit their mistake, in writing. You will need thsi when you confront them to pay all taxes, penalties, and interest. If they do not agree, get a good lawyer. After you win, makke sure that you protect others from such incompetence by getting a story into the newspapers, unless they are smart enough to require you to sign a “non-disclosure” agreement.2008-03-14 12:11, By: dlzallestaxes, IP: [141.152.255.46]

L2: trustee/custodian error busts SEPP planHello Jevd:
It is likely that the error does not qualify for an automatic waiver, But, why do you say itdoes not qualify for a manual waiver of the 60 day rollover period? If it does, and most trustee / custodian errors do, then the cost to correct is techncially a PLR but the filing fee is $500 plus the cost to prepare the PLR. Usually, even a semi-enligthened trustee will commit to covering these costs in advance.
In the advent that the extensionof the 60 day rollvoer period does fit or work; there are two additional paths available:
1. A full PLR @ $9,000 filing fee plus professional fees to prepare.
2. FINRA arbitration to attempt to collect the 10% surtax plus interest.
TheBadger
wjstecker@wispertel.net
2008-03-14 14:45, By: TheBadger, IP: [72.42.66.180]

L2: trustee/custodian error busts SEPP planI assume you have good documentation that proves this is a custodian inflicted error. If this is true, then have you approached the custodian with the facts and asked them to cover the costs of their error?
Your post does not indicate any action on your part with this approach. I have found custodians are willing to accept their responsibility and to correct the situation. Remember. If the custodian is proved wrong without going to court or arbitration, then it”s a whole lot cheaper for them to pay the penalties than to enter a fight they can clearly see will be a loosing deal for them. Public perception is also a valued commodity to custodians.
Just my thoughts.
Jim2008-03-15 04:49, By: Jim, IP: [24.252.195.14]

L2: trustee/custodian error busts SEPP planI agree, but recognize that the custodian will be looking to assign whatever degree of “contributary negligence” they can to your communications with them. Their share of the responsibility for the error must be 100% or very close to that for them to want to indemnify you. In other words, is there anything on record they can point to that serves as an excuse for their action? If there is, it”s going to be an uphill fight, because they already have legal counsel skilled in using whatever defenses are available to them and plenty of money.
Of course, they may also consider the total amount of assets you or your family have with them that may be leaving if they do not act responsibly. That may provide you with some added leverage.
2008-03-15 13:30, By: Alan S., IP: [24.116.165.60]

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