I'm interested in opening a self-directed Roth IRA account for myself, but I had a couple of questions that I hope some of you can help me with.

If I trade primarily individual securities (listed stocks on the exchanges), how are capital gains taxes handled within the account? Do I have to pay capital gains taxes if I sell a stock after a sizeable gain? (obviously, provided that I keep all money within the Roth account).

Ex: Purchase a stock within Roth at 50 a share, sell the entire position at 60 a share, put that money into money market account or something equally liquid until buying the next stock. Provided that all of this money is kept in the Roth Account itself, is there ever a 'taxable event' here?

Thank you for your help!

We have a situation wherein an ex-spouse has submitted a QDRO. The formula, however, provides for a benefit distribution in excess of the benefits due the participant. The attorney for the ex-spouse is dragging this out. Is there any case that has the fact pattern of a formula which produces a benefit higher than what the participant herself is entitled to? I have found cases dealing with increased benefits that discuss the fact that a current spouse vests upon the participant's retirement, etc. Any more insight? Unfortunately, the attorney on the other side is not satisfied with the language in the statute. Suggestions? Comments?

Thank you

Since "deferral only" 403(b) plans are not ERISA plans, can they be offered to only certain groups of employees in a fashion that would normally be considered discriminatory in a qualified plan? Perhaps only to a HCE group, for example?

If I transfer money into bonds in a ROTH and recieve payments, can I opt for collecting that payment without paying the 10% penality tax? OR can I invest in dividends stock and take the money out that way?

Thanks for any references and anwers

If I were to pay medical expenses (health insurance premiums) for a non-dependant child (I do not provide for more than 1/2 the support) would the expense be covered under a cafeteria plan

Have searched and can't find anything similar on the boards.

Scenario is this - company A has 401(k) plan and company B has 401(k) plan. A and B are control group.

Employees job is to be eliminated at company A in next couple of months. Employee takes job with company B.

I need site that says employee can not roll funds from company A plan to company B plan.

Can anyone help me out here?

My current employer (a nonprofit) offers me 7% of my salary to be allocated to an employee-directed non-ERISA retirement plan. My employer also withholds taxes from this amount, so that the actual amount invested is less than 7%.

My previous employer (a university) had an ERISA 403 b plan in which no taxes where withheld, but I could choose only from the investment options that the employer offered. This was not bad as there were many options to choose from.

Is there anyway that my current employer can legally not withhold taxes from my existing plan? Or would it be necessary to switch to an ERISA plan? Are ERISA plans more "expensive" for an employer than a non-ERISA plan?

I hope to approach our finance director about this, but wanted some guidance or information first.

Thank you.

Can anyone tell me about the new health savings accounts? Mainly pros and cons I guess.

Thank you

The following facts were presented to me:

A person is a 1% owner in a LLC and as a results receives a K-1.

The same person is a common law employee in the same LLC and receives a W-2.

The amount reported on the W-2 is sigificantly larger (70 times more than) than the amount reported on the K-1.

The question is whether this person can participate in the companies cafeteria plan.

I am a retirement plan practioner and would appreciate any guidance as to what additional information is needed, or guidance that allow or doesn't allow this person to participate.

Thank you for your assistance.

A client of mine, law firm, merged with another April 1, 2003. Each has their own plan. The CPA told them they didn't have to worry about the plans so they have no documentation for termination, merger, assumption of one plan by the new company or anything else.

It appears to me that:

a. No contribution can be made to either plan for the three month short period ending March 31, 2003. (Employees worked maybe 520 hours.)

b. It's to late to amend the plans to lower the allocation requirement from 1,000 to something less. (12/31 year end).

c. both plans are ongoing without plan sponsors at this time.

d. The new entity has no plan in force for the 4/01/03 to 12/31/03 period.

Any ideas?

A client sponsors a 2-person plan, an LLC company with the owners being the only employees.

Can I prepare Form 5500-EZ under the instructions that the plan only "covers one or more partners (or partner(s) and spouse(s)) in a business partnership" or do I have to file Form 5500 because the entity is a corporation?

We have an employer who would like to charge an employee/participant a transaction fee (outside of the plan) for each loan payment that he has to process. This fee would be paid by the employee and would not reduce the loan payment

Under Ohio law he can charge a minimal fee ($3.00) for each child support payment, etc. so he would like to do the same for loan payments that he processes. The participant will pay a loan origination fee as well as an annual accounting fee to us as the plan administrators. Any thoughts on this minimal employer additional fee? Anyone else have experience with this type of fee?

I am working on a plan that is top heavy for the 2003 plan year. Only deferrals were made. The plan did not pass the ADP test, and refunds have already been made.

All the information we have says that the company will still need to make a 3% top heavy contribution to all non-key employees. Since the company amended their plan to take out safe harbor so that they would not be tied into making a contribution, does anyone know of any exceptions to the top heavy rule?

Thank you!

i have a client that has had a plan since 1980's and never filed 5500EZ (one participant). what is the procedure on reporting delinquencies to the IRS and any idea of what he's looking at for fees? does the IRS tell you the fees in advance or do you find out after you report?

thanks for any help....

If forfeitures are distributed from the plan to pay plan expenses (as allowed by the plan document), how is this accounted for on the Schedule I?

Thanks,

Rachel

Our insurance plan changed carriers. Before the change, employees could sign up for medical and/or dental coverage. Now, employees need to sign up for both medical and dental. Would pariticipants on COBRA prior to the carrier change, who had just medical or just dental, now also have to take medical and dental?

A divorced participant in a DC MPPP wants a payout. He has provided his divorce decree and settlement agreement. No reference is made to this plan whatsoever. The only reference is to a 401K plan, separate and apart from this plan.

The settlement agreement is very detailed and it is odd that there is no mention of this plan. We are requesting copies of the Rule 401 Financial Statements, referred to in the settlement agreement to see if the MPPP was disclosed by the participant.

If the MPPP was not disclosed I don't see how we can authorize payout w/out a signed, notarized waiver by the exspouse. Is this correct?

If the MPPP was disclosed, can a payout be authorized or should we get a signed notarized waiver?

I need a second or third opinion. sponsor has a class of equity shareholders that have voting rights but due to a side agreement among the class of shareholders and the majority shareholder, they are not allowed to vote the shares for the next ten years. do you think these shareholders must still be considered owning 1% of the combined voting power under 416?

Facts:

Husband (H) is sole owner of his dental practice limited liability company. LLC sponsors a safe harbor 401k plan. Wife (W) is employed by the LLC, as is one NHCE employee (E).

W earns 402(g) limit + enough to handle FICA w/h + enough to leave 415 room for the 3% QNEC; and defers the 402(g) limit annually. Assume W performs valid services (eg no sham employment). E earns $30,000 annually and elects not to defer. H earns approximately $100,000 (earnings from self employment).

Safe harbor contribution is 3% QNEC. H grants profit sharing annually in addition to the QNEC (please ignore possible design flaw issues for purposes of this discussion).

Question:

What I am concerned about is the profit sharing. E gets the profit sharing but W doesn't because she'd go over 415.

This seems okay on its face - but is there any problem with W never getting profit sharing. In other words does 415 override the requirement that the profit sharing percentages be uniform (assume a plain vanilla profit sharing formula)?

Thanks for any help.

A plan's benefits are based on Service using average comp during "Participation".

Since avg comp on the plan's effective date is zero, would it be correct (or reasonable) to say that on the plan's effective date the accrued benefits, PVABs and the Current Liability etc are all zero?