Are non-qualified plans subject to state escheat laws? I was thinking that since the plan assets are not protected, and are subject to creditors, that unclaimed benefits could be infact subject to state escheat laws.

Thanks!

This may not be the right area since the client now has all her $ in an IRA... Its just that you guys are a wealth of knowledge... I figured you might know. I posted this post in the "IRA" area... not many replies... any thoughts.. anybody?

An old pension client of mine terminated her plan and rolled the $ into her IRA. She is on disability and doesn't think she will make it to retirement age before she dies. She asked me if I knew if she could withdrawn funds from her IRA without penalty since she is disabled. I admitted that I couldnt answer that question but would see what I could find out.

Is the answer dependent on the IRA?... or is there a definitive answer with regards to all IRAs?

Also, is there a # to call at the IRS?

Any help would be greatly appreciated!!

If I am not following proper board etiquette let me know and consider me "tought"

An old pension client of mine terminated her plan and rolled the $ into her IRA. She is on disability and doesn't think she will make it to retirement age before she dies. She asked me if I knew if she could withdrawn funds from her IRA without penalty since she is disabled. I admitted that I couldnt answer that question but would see what I could find out.

Is the answer dependent on the IRA?... or is there a definitive answer with regards to all IRAs?

Also, is there a # to call at the IRS?

Any help would be greatly appreciated!!

The question is this: In the case of a company that self-funds several plans, including medical and LTD, if the company ceases its business operations, does state or federal law require any time period during which claims must be processed and paid? Or, does the company's obligation to pay claims cease upon declaring the plans teminated?

What is the source of regulation if this process, if any?

Thanks very much for any help you can give.

I am working on terminating a plan with all of the participants paid out except one. I believe I have tried all avenues to locate this participant but have been unsuccessful so far. I have sent letters to the last known address, sent a letter to the IRS for forwarding, yet no response. Are there any further avenues I could try to locate this individual. I would like to close this plan asap. Any and all suggestions would be helpful.

I have been contritubing to the 457 under the "Savings Plus" program as a California state employee. I am 49 years old, and am in the 15% tax bracket. Would I be better off contributing monthly to a taxable account? I already contribute the maximum to my Roth and will continue to do that.

I have a client who has a participant that wants to take a loan. The participant and her husband are "going through a divorce".

The plan requires spousal consent for loans, but can that be waived if they are "legally" separated, and have documentation showing that they have started the process to become divorced?

If so, would they just have to supply this documentation?

Thanks in advance.

I am trying to minimize my tax burden at age 70 1/2 by reducing my IRA's balance.

Each year, I am converting a computed amount (determined by keeping my AGI under $32,000 to prevent paying taxes on Social Security Benefits) to a ROTH IRA.

My question is: Once I begin distributions at 70 1/2 using the recalculation method, can I continue to reduce the Traditional IRA's balance by not only the required minimum distribution; but also, by additionally converting part of the balance to a ROTH IRA?

My goal is to minimize future taxes by accumulating a greater portion of the IRA distributions in a non taxable account(ROTH IRA). Although the total amount of the IRA distributions and taxes due would remain constant, the future tax burden would be reduced.

All numbers presented below are estimates. The methodology is the basic question behind the valuation.

An actuary has decided to change funding method to unit credit. The plan does NOT have a credit balance BUT does have an accumulated reconciliation account of 3,000.

The valuation produces an accrued liability of 500,000 with assets of 300,000 (unadjusted for the CB or ARA).

An amortization base is established for both 404 and 412 equal to 200,000.

This immediately throws the balance equation off. Doesn't the ARA have to be taken into account in the establishment of the bases???

The client uses the unfunded current liability as the maximum for this year and contributes 50,000. This produces a credit balance of 30,000.

The subsequent year the assets take a huge jump so that the valuation produces an accrued liability of 600,000 with assets of 610,000. The ARA is now 5,000.

The remaining balance for the Method base is:

412 (200,000 - 20,000) 180,000

404 (200,000 - 50,000) 150,000

The ARA is still being ignored (as far as I can see) because the balancing item is the credit balance.

What should the gain/loss base be?? (Assuming zero interest)

It does not appear to be right (at least not the way I would have approached it).

Any and all comments are appreciated.

An IRA holder who is less than age 59 1/2 takes a distribution from the IRA. Can this person, within the 60 day period, return the distribution to the IRA in the form of stock (at FMV) instead of cash? I can't find anything in the IRA answer book that deals with this scenario. Would the person pay capital gains (or take a capital loss) on the stock that is transferred to the IRA, if allowed?

Thanks for any replies.

Hi, I am planning to use a Roth IRA for my son's college savings. Higher education is a qualified reason to withdraw Roth gains correct? I think it is better than the Coverdale because the yearly investment is greater (2000 vs. 3000). I welcome any opinions/feedback on this.

Thanks, Brian

Anyone have a good New Year's resolution you would like to share?

Can an employee who is in the middle of getting a divorce remove the spouse from the health plan without the spouse's permission?

Can a fidelity bond have a deductible?

A sole proprietor sponsors a DB plan. All of his employees, including himself, are paid through a leasing organization, thus the sole proprietor is receiving a W-2 wage. His net earned income for the business will most likely result in a negative amount for 2003.

So, how is his compensation determined for 2003?

BTW, I am only concerned with the answer for benefit accrual purposes. There is no contribution being made to the plan.

I have read through the articles on Benefits Link, but I am still a little confused.

How exactly do the new regulations regarding QJSA/QPSA explanation requirements affect DC plans? Is there any additional explanation required other than including a statement that the annuity willo be purchased with the participant's account balance from an insurance company?

Thanks!

Am new to this forum so please bare with me if the explanation isn't 100 percent clear...I had put in $9,000 into my Roth Ira before the 2003 tax year and put $1,000 in for 2003(making $10,000 total). I sold and got about $7,000. I believe I'm correct that there isn't a penalty because I received less than I've contributed. Is this correct? Also, I believe I can claim the $3,000 in losses also but don't understand the 2 percent agi max that I just read on another message. I'm also not sure where I would claim this on the tax form.... Last, since I only contributed $1,000 for 2003(even though I sold it) can I still contribute the remaming $2,000 by opening a new Roth or can I contribute the whole $3,000 or nothing? Thanks for any help anyone can give me..

We've got a DB plan with a deceased participant who was in pay status at the time of his death. A QJSA is payable, and the participant's benefit application named his wife ("second wife") the beneficiary of the QJSA (and, of course, his benefit was calculated using his and his wife's ages).

Participant dies. Another woman ("first wife") reports his death and claims to be his wife. She provides a marriage certificate and the death certificate on which she is named as the surviving spouse. She acknowledges that she and the participant were not living together, but claims they were never divorced. She asserts that the marriage to the second wife is not legal.

Plan contacts second wife for proof of marriage and divorce decree of participant and first wife. Second wifes fails to reply to multiple letters.

First wife wants the QJSA.

The participant lived in IL. First marriage took place in IL.

Thoughts on how to evaluate claims and on proper beneficiary? Should the Plan simply file an interpleader?

Thanks.

Help please - just need to know where to look and memory fails me. An individual with an IRA that is invested in the stock of a company that is in court - bankruptcy I think or SEC investigation or something. He can't sell the stock - it's restricted. 12/31/02 statement shows and estimated value (actual isn't available because stock was restricted) which is substantially higher than the estimated values being shown on 9/30/03 statement and broker and client are convinced the stock is now actually worthless. Where do I look to find info. on calculating RMD? How is he to take distribution if he can't sell the stock? Nothing like waiting 'til the last minute.

Thanks,

Kathy

when i file my tax return form, do i need to indicate i contributed to my Roth IRA?