Hi.

I have read in various places that contributions (but not earnings) may be withdrawn from a ROTH IRA at any time with no penalty. But it seems from what I have seen that there is a 10% penalty, if not held for 5 years and not 59 1/2.

I am in my thirities and am self-financing and building a home (not the first home I have owned). I am going to need extra funds because my well dried up, as did an additional one I drilled (meaning I need to drill a third).

Can someone point help me out, and point to the relevant IRS publications? I would like to pull out about $20K, some of it contributed more than 5 years ago, some less than that. If I do this do I need to make a statement on my income tax return and pay 10%?

Your help is appreciated.

Sincerely,

earthscaper

Goal: Find a way to help an employee(s) and or dependents stay with the company even if they loose their coverage under the cafeteria plan (such as full time to part time status) (after COBRA) (not looking for any special tax breaks)

questions: Could a part-time employee pay after tax premiums to be on the same cafeteria plan? Or have some kind of separate after tax plan for the employee/dependent, or have the company pay individual insurance premiums for them, or maybe an HSA (not really familiar with HSAs). Could medical expenses for part time employee(s) be paid from general assets of a company or should it be paid directly from a plan? Just trying to figure out a way to keep a part time employee(s) from going somewhere else if they can no longer work full time.

All of a sudden (starting out of the blue yesterday), the circle-c is appearing in posts rather than the prenthesis-c-parenthesis. Same with circle-r rather than parenthesis-r-parenthesis. It's happening with multiple computers, too. Anyone else having this problem?

Was divorced 10 years ago. Spouse was awarded in DRO part of pension. The PA did not qualify the DRO and both her and her attorney recieved notice of this.. now 10 years later, I Remarried 9 years ago, new wife is SS on retirement and ex is dragging me into court to re-open case. Does the DOL 406 apply here also latche? They tried to get me to sign QJSA, but I did not.

Any help or advice of how I can fight this . What are my options??????

I'm reviewing a plan with the following:

- They have 0 participants at the end of the year

- They have $0 assets at the end of the year

- They had over 120 participants at the beginning of the year

- This is the final 5500 filing as the plan is terminated and all assets are paid out

- The company has been gone for about 5 years or so and the plan was still around because the trustee was working on getting a fair value for employees.

- No one has worked for the company for about 5 years

- The prior CPA said there is no money to even pay for an audit as no company exists to pay for it.

The client (well, someone...) received the typical DOL letter for the missing accountant's opinion. Is there any type of exemption from the audit requirement in a situation such as this? Who is responsible for the completion and the cost of the audit? Do we go back to whomever submitted the final Form 5500 report recently? Do we try to track down any fiduciary or trustee of the plan?

ok my "Crystal" friends...

We put our valuation reports together in a custom format. SO....my dilemma is that I don't want the page numbers on the ADP/ACP reports that print directly from Relius. (I don't want to have to save the tests into Crystal where I know I can edit them there.)

Is there a way to remove the page numbering in the "master" Crystal file for ADP/ACP and thereby print right from Relius without page numbers?

I thought I had done it by editing the master file, but then when I printed the employee listing (which is multiple pages) the page numbers are still printing. I was able to remove page numbers from the analysis and results pages but I think it is because they are only one page.

Thanks in advance!!!

I have a question about an old DRO that was never Qualified by PA and letters was sent to both Attorney and ex-spouse.

Now 10 years latter, I am remarried, retired in 2007, and ex has a lawyer tring to modify so it can be re-submitted.

Does the Doctrine of Laches apply here? Does ERISA 206(d) and 414(p)(6)(A)(ii)? Also what are my options in fighting this as my spouse of 9 years is the SS and they also are trying to get me to sign a QJSA...

Say a first year plan has a 12/31/08 valuation date. It is my understanding that for funding the 24 month segment rates that can be used are those for applicable month, where the applicable month can be December 2008 or any of the four preceding months. So therefore, it would be acceptable to use August 2008 24 mo. segment rates for funding purposes and even if the form of payment is a lump sum.

Let's assume the plan lump sum basis is the 417e rate and the 2008 app mortality table.

Now let's move on to 415 lump sums.

My understanding of the most recent information on this subject (it may have been since superseded) was that the 415 lump sum basis uses GAR94 still and the greatest interest rate of the following:

1. 5.5%

2. plan rates (let's assume they are the 417e rates)

3. the rate that produces a pv that is 105% of the pv using the 417e rates.

So, prior to 2008 if the 30 year treasury for the applicable month was less than 5.5%, then the required interest rate would of course be 5.5%

For distributions in 2008 (assume calendar year plan year) is the only difference the 417e rate?

So for example if the 417e rate was based on the applicable month of December prior to plan year, than for 2008 would the 30 year treasury for 12/07 be replaced with the 417e rates now in force?

My understanding is that the 417e rates are now based on transitional rates that combine spot segment rates for a given month (in this case December 2007) and the 30 year tresaury rates.

Basically, I am referring to the minimum present value rates now in force (i.e. I don't have access to the specific terminology at this moment).

Is my above interpretation accurate or has there been other revisions to the 415 lump sum calculation that I will need to research?

Thank you.

Taft Hartley Funds (pension and annuity) have lost a significant amount of money in the last month due to stock market problems. Are there any liability issues that the Trustees should be concerned with in terms of dealing with the funds that remain. (should they sell or stay the course)

Any ideas??

Generally speaking: I know you can't exclude employees from participation based on age and service. I know you can based on job category.

Can you pick certain employees hired on specific dates and say "anyone hired on October 3, 2007" (for example) is excluded from participation in the Plan?

Thank you for your help (anyone!)

Any recommendations for an employee who wants to make an election change because his employer told him at enrollment that it is OK to use FSA funds to pay for his TriCare premium? Would this be considered an allowable election change?

Our employees are paid twice a month. If somebody terminates employment on the 17th, insurance ends on the 17th; however, premium contributions are deducted from their last paycheck on the 30th (for the entire period). We only refund the contributions if the former employee calls and complains. Evidently, the logic is that employee coverage begins from date of hire even though we don't collect retro contributions, so it evens out. While I haven't been able to find anything on point, it seems to me that we should be refunding the contributions? Any insight or suggestions?

Historically, we have used Line 7 of Form 5500 for our PBGC participant count. We are questioning that practice after reading on page 15 of the instruction booklet (Comparison to Form 5500) that for flat rate purposes, individuals earning or retaining credited service but who have no Benefit Liabilities under the plan do not have to be counted. After carefully scrutinizing the definition of Benefit Liabilities, our interpretation is that we should not count non-vested participants unless our actuary can give us a good reason why we should.

Any thoughts or is anyone else excluding non-vested participants?

Wondering if it is happening to just me.

When I search, the search field pops up behind the Benefits Logo in the upper left hand corner...and it does not permit input.

Today I discovered my in-box. There were three messages in it, one of them from December. I never knew this part of the board existed. Now I am wondering what else I am missing?

Is there a tutorial for this board by any chance?

I recently discovered that after an "enrollment window" closes either because the employee makes an election or defaults, a confirmation is sent to the employee telling them to look it over, etc. and stating that they have 15 business days to contact us regarding any errors. If the employee then calls us and says s/he wants to add a dependent, that dependent is enrolled retro to opening of the "enrollment window." Is this okay? I don't see that this is a "mistake" as much as it is an oversight, etc. on the part of the employee and therefore wouldn't open anything back up? There doesn't appear to be any exception in the 125 rules which would permit this, but I don't know whether I am missing something.

Thanks,

We have a 401k plan that excluded several participants (missed elective deferrals and missed matching contributions). Corrective contributions have been made according to EPCRS. However, do I have to "report" these corrections? Where would I report it? The plan never had use of the assets so I would not think they would be late contributions / prohibited transactions and thus not reported on 5500 Schedule H. or on 5330 (no excise tax required). Any thoughts?

One man DB Plan also with a 401(k) Profit Sharing Plan. Compensation is greater than $230,000. His minimum required contribution for the DB plan is $0. The maximum deductible contribution is $73,152.

If I understand correctly the total contributions he would be able to make for 2008 is the sum of:

(1) Minimum DB contribution = $0

(2) 401(k) deferrals = $20,500 (including catch-up)

(3) 6% of comp for profit sharing = $13,800

Now, he is also subject to the greater of the above and the 25% limit (deferrals dont count towards this), correct? So 25% of his compensation is $57,500. Is this the maximum he can contribute and deduct for 2008 in the DB and DC plans combined? So if he contributed $13,800 to the 401(k) plan and $43,700 to the DB plan would he be ok?

Thanks for your help, I very much appreciate it!!

Plan participant has taken the maximum allowed loans for the plan. Wants a hardship to finish building his principal residence - Wants $90,000. Wants taxes at about 43% because below 59.5 and in 33% tax bracket.

I was thinking that all he could get if he were buying a house would be the required downpayment and assorted closing costs.

With building a home - I think you first take construction loans and then do a closing on the home. Then once you are doing the final loan for the home you could apply the downpayment etc.

Am I correct here? I read someplace that you couldn't use hardhip to purchase land since you cannot reside on bare land. Plan uses safe harbor hardship rules.

I am thinking he could not get a hardship until he actually gets the mortage on the home, not for paying expenses (construction costs) to build the home.

Thanks for you help.

Pat

A Participant is thinking of enrolling in a plan & moving his balances in two former employer 403b7 plans @ ABC Co. into the 403b7 @ DEF Co.

Both of the two plans he is looking into moving have pre87 dollars (about $95k total) that are grandfathered. He knows that VG does not keep track of grandfathered dollars and is aware that he must do it. He is willing to do that.

There is a question of: Does the ppt lose the grandfathered status of the pre87 403b7 balances in these two plans if he moves them from ABC Co. plan @ DEF Co.?

He knows he would lose the status if he moved them to an IRA. ABC Co. told him he would not lose the status if he moved the plans to the 403b7 he has @ ABC Co.

He would rather move them to DEF Co.