-8-
Enclosed in the above letter is a “Settlement Statement
(Prepared 8/11/98 with values as of 7/15/98)”. According to that
statement, the market value of petitioner’s current vested
account balance in the ESOP amounted to $467,817.48. The
statement says that $467,766.10 of that amount was paid to
petitioner in the form of 10,323 shares of J.D. Edwards & Co.
stock. The stock was valued as of July 15, 1998, at $45.31 per
share. The statement also says that the payment to petitioner
was “less withholding” of $51.38 “consisting of your cash account
and fractional shares”. We note that the value of petitioner’s
fractional share, $41.07 (i.e., 0.90164 x $45.31), plus the cash
balance in his account, $10.31, is $51.38.
On October 2, 1998, petitioner executed a Norwest form
entitled Self-Directed IRA Rollover/Direct Rollover
Documentation. According to that form, petitioner’s signature
signified his irrevocable election, “pursuant to IRS regulation
1.402(a)(5)-1T, to treat this contribution [viz. of 10,323 shares
of J.D. Edwards & Co. stock] as a rollover contribution.”
Petitioner’s signature appears on the form a second time in order
to give Norwest the following “Commingling Authorization”:
The undersigned authorizes the Trustee/Custodian to
commingle regular IRA contributions with
rollover/direct rollover contributions pursuant to Part
II above. I understand that commingling regular IRA
contributions with rollover/direct rollover
contributions from employer plans may preclude me from
rolling over funds in my rollover IRA into another
qualified plan or 403(b) plan. With such knowledge, I
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