A leveraged ESOP was established 1-1-1999. The only assets are non-publicly traded stock. An employee age 67 and at normal retirement age (later of 65 or 5 years of participation) with a $100,000 account value wants a distribution from the plan. He is looking for "installment" type payments to provide a retirement income.

Plan provides for lump-sum distribution in cash, stock, or both. Plan has "put" option feature.

Can he request distribution of shares and put the shares back to the plan and receive annual payments for 5 years?

If the stock is "put" to the plan, does his account in the plan go to $0 and 0 shares? How is his interest in the plan reflected on the plan's books?

Is the plan required to provide "adequate security" and if yes, what is acceptable?

Like many, I bought a tech fund in my Roth IRA in 1999. Any chance I can sell it and take the loss?

I have a client who was a 33% owner in a medical practice with a 6/30 year end. For the 6/30/03 plan year, he received a $40,000 PS contribution.

He terminated his employment on 6/30/03 and started his own medical practice where he owns 100% of the stock. He opened a new PS plan effective 7/1/03 with a 12/31 year end.

Since he has already received a $40,000 contribution in 2003 from his previous employer, can he get a PS contribution from his new practice in 2003?

Thanks!

A participant has discontinued making payments on a plan loan. They have filed Chapter 13 bankruptcy. The participant's attorney has indicated that it is against the law to give the participant a 1099 for a deemed distribution of the loan due to failure to make timely payments, due to the participants being under Chapter 13 bankruptcy. Has anyone heard of this before? Do you have any sites referring to this?

I know that you can not tie a defined benefit accrual to participation in a 401(k) plan (1.401-1(e)(6)), but I couldn't find anything specifically precluding it with a 403(b) Plan.

In other words, can I have a defined benefit formula that is partially tied to participation in a 403(b) Plan? ie: 1% of compensation per year of service, plus .5% per year of service if contributing to the 403(b) plan

If a plan document states that participants can defer 100% of compensation up to the limit ($13,000 for 2004), what is the most match that can be made using an enhanced safe harbor match? Can you tell me the Reg that states this?

Does anyone know where I can get details on the vouchers and transit passes offered in various cities across the U.S.? With the implementation of the new IRS tax rules about commuter reimbursement, we need to determine where vouchers and passes are available and determine the impact to our commuter reimbursement plan. We have employees in numerous cities across the country and I can't find one site that has info on all cities or at least regional cities.

I have a client that currently has 1 plan with 2 companies. They want to restructure the companies into seperate plans, let them decide what they want to contribute and do cross-testing on each plan.

Do I have to combine the plans for cross-testing purposes?

am i correct in understanding that you can withdraw your _contribution_ from your ROTH IRA _any time_ penalty free and tax free and without waitinf for 5 years?

for example, i contributed $3000 in October, and in December, the account balance is $3500. I am allowed to withdraw $3000 from it now without penalty and tax?

It seems that everything I read tells me that Roth IRA is a better option than the regular IRA, which I don't understand. The first thing came into my mind was this:

most people will be in a lower tax bracket by the time of retirement than they are now. So, wouldn't it be to my advantage to defer tax payment, as with a regular tax-deductable IRA, until when I retire than be taxed at higher tax bracket now, as with Roth contirbution?

am i wrong?

In a multiple employer plan, must one employer provide a contribution to an employee transferred to another employer during the year if the Plan has a last day rule?

Similarly, if a plan has an annual 1,000 hour of service requirement, must each employer consider hours of service with all employers.

The only guidance I have found relates to service within 410(a), which relates exclusively to initial eligibility. That indicates that employers are treated as one employer with respect to 410(a). No such information on allocation conditions though. Specific sites would be terrific.

I know that the Plan document should be specific, however, I'm wondering if there is a specific rule on this matter.

Thanks for your help!

Question 10a of the 5307 requires an attachment if the qjsa is eliminated as the normal form of benefit for a plan. What information have you, or would you, include in this attachment?

1. I opened a Traditional IRA for 2,500 dollars couple of weeks ago with out realizing that I am not qualified because I participate in 401K plan and my combined AGI (including my wife's income) is more than 60,000. So, My next choice is to transfer this money in to Roth IRA. What is the last date to do that? Some where I read that I can do it until April 15, 2004. But on the home page of this site, it is mentioned as Dec 31, 2003.

2. In the above case, If I take distributions after 5 years, do I need to pay tax/penalty? I am 39 and I don't think of any qualifying reasons like first home etc.

3. Our combined AGI is about 90,000 and my wife doesn't participate in any retirement plan. So, I am assuming that I can open another traditional IRA account on wife's name and take deduction up to 3,000 dollars. Am I right?

Thanks.

I am looking for a Crystal report that is similar to the old Trustmark "Accounting Report" i.e. transaction based in the aggregate. Has anyone seen such a thing.

Ok, here's a good one that I hope you guys can help me with. We processed a distribution on December 15/16 (guy had forfeitures). On December 17, a letter was sent to the client, instructing them to cut a lump sum check and also cut a check for taxes from the plan's check book. Unfortunately, the distribution form asks for a rollover to be processed. The person who wrote the letter did not notice this, apparently.

I was getting my 1099R files ready to print, and noticed the discrepancy in codes (Relius is telling me "G," but my data sheet says"1"). The tax check has already been cashed, and most likely, this client has already processed their last pay for the year. If this participant calls requesting a correction, how can this be corrected? Any ideas?

Thanks for your help!

If a 12/31/2002 plan has 402g refunds, do those need to be issued prior to 12/31/2003? Since these are an individual's refund and not a plan refund, I was unsure on whether those could be treated differently.

Thanks.

I'm wondering if anyone has had experience with the quarterly pension funding requirement under the Service Contract Act?

If an employer contracts with the U.S. government to provide services, the SCA regs (29 CFR 4.175) require that pension funding be quarterly or more often. How does that work on a practical basis when you have a DB plan with an annual valuation?

Any real world experiences out there would be welcome.

A participant was paid a $100,000 distribution in 2002 without any federal tax withholding. Our client did not report the distribution to us so a 1099 was never issued, nor did the participant report it on his 1040. How do we go about correcting the error? Do we issue a 2002 1099 now?

In another situation, a participant terminated with an outstanding loan balance and the defaulted loan was never reported on a 1099R or by the participant on his 1040. The default occurred in 2001. What can we do now to correct this situation?

Hello, can someone tell me where i need to go to open a roth ira account. I read one book on roth ira and understand it, but i dont know where to go and open an account. I did a search and found www.fidelity.com www.scottrade.com www.sharebuilder.com , but im not sure if this is where im suppose to sign up for one. Also can i be informed if there are any hidden fees and such so i dont get ripped off. Thanks in advance - my email is nastradanous@aol.com

Merry Christmas and Happy Holidays to all and thank you Dave for a Great Job.