Bubbles LLC is a web design company that operates out of Boulder, Colorado. Jesse and Skyler started Bubbles twenty years ago and it has grown to be one of the more sizable web development fims in Colorado. Bubbles offers a 401(k) /profit sharing plan with a Roth account option. The plan has the following characteristics: - Eligibility: age 21 and one-year of service - Match: dollar for dollar match - Vesting: 20\% per year (years 1 through 5 ) - Highly compensated definition uses top 20% election - Profit-sharing contribution: Bubbles generally makes a sizeable contribution, but the percentage varies. - The plan has been amended to permit in-plan Roth rollovers. - The plan permits rollovers from other qualified plans and IRAs Note: Lydia is Skyler's daughter. She graduated from the art institute five years ago 8. How many years of service does Hector currently have for purposes of vesting? 9. Jesse has $702,000 accumulated in the 401(k) plan. The balanco consists of deferrals, employer matching contributions, eamings, and profit-sharing contributions. Jesse also has an NOL carryover on his personal retum from another business investment. Discuss whether Jesse can execute an in-plan Roth rollover and the tax implications. Bubbles LLC is a web design company that operates out of Boulder, Colorado. Jesse and Skyler started Bubbles twenty years ago and it has grown to be one of the more sizable web development fims in Colorado. Bubbles offers a 401(k) /profit sharing plan with a Roth account option. The plan has the following characteristics: - Eligibility: age 21 and one-year of service - Match: dollar for dollar match - Vesting: 20\% per year (years 1 through 5 ) - Highly compensated definition uses top 20% election - Profit-sharing contribution: Bubbles generally makes a sizeable contribution, but the percentage varies. - The plan has been amended to permit in-plan Roth rollovers. - The plan permits rollovers from other qualified plans and IRAs Note: Lydia is Skyler's daughter. She graduated from the art institute five years ago 8. How many years of service does Hector currently have for purposes of vesting? 9. Jesse has $702,000 accumulated in the 401(k) plan. The balanco consists of deferrals, employer matching contributions, eamings, and profit-sharing contributions. Jesse also has an NOL carryover on his personal retum from another business investment. Discuss whether Jesse can execute an in-plan Roth rollover and the tax implications