Important Changes for 1999 Hardship distributions are not eligible rolloverdistributions.Certain hardship distributions from a 401(k) plan or tax-shelteredannuity plan (section 403(b) plan) that occur after 1998 cannot berolled over into an IRA or other eligible retirement plan. They aresubject to the 10% additional tax on premature distributions. However,they are not subject to the 20% withholding tax that generally appliesto eligible rollover distributions that are not transferred directlyto another retirement plan or IRA. The IRS has made application of this new rule optional for 1999.For more information, see Notice 99-5 in Internal RevenueBulletin No. 1999-3. Safe harbor 401(k) plans.Beginning in 1999, a 401(k) plan under which participants receive acertain level of matching or nonelective contributions does not haveto pass the special nondiscrimination tests that apply to electivedeferrals and matching contributions. For more information, see Notice98-52 in Internal Revenue Bulletin No. 1998-46. Photographs of missing children.The Internal Revenue Service is a proud partner with the NationalCenter for Missing and Exploited Children. Photographs of missingchildren selected by the Center may appear in this publication onpages that would otherwise be blank. You can help bring these childrenhome by looking at the photographs and calling1-800-THE-LOST (1-800-843-5678) if you recognize a child.