- 6 -6 provided for quarterly repayments of the borrowed funds at 12- percent interest, with the final installment due on July 5, 1994. The note further provided: It is agreed that in case of default in any payment of interest, or termination of the employment of maker, or the death of maker, the entire debt shall immediately become due and payable at the option of the holder hereof. Petitioner never made any repayments of the borrowed funds to the plan. At the end of 1990, Jessie Homan, an account administrator for Deposit Guaranty, contacted Jerard Pitts, the business manager at Heidelberg & Woodliff, to discuss petitioner's delinquent payments on his loan. Ms. Homan inquired whether the loan should be declared in default and charged off. Mr. Pitts informed Ms. Homan that petitioner was leaving the firm; they decided to charge off the loan in January 1991 in accordance with the terms of the note. On February 7, 1991, Deposit Guaranty issued a check for $36,424.07 payable to petitioner. The check represented petitioner's balance in the plan, $85,455.49, less the amount of unrepaid funds borrowed from the plan, $49,031.42. The check was mailed to Mr. Pitts and was negotiated by petitioner in 1991. Petitioner failed to roll over any of the distributed funds into another qualified tax-deferred account within 60 days. A Form 1099-R (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA's, Insurance Contracts,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011