2003 publication 590 beginning on p. 55 states "you can contribute to a roth ira for your spouse provided the contributions satisfy the spousal ira limit and your modified agi is less than 110,000 for married filing separately and you did not live with your spouse at any time during the year"

using the above facts and putting a 3000 roth contribution on the return of the spouse with no compensation using turbotax results in 180 excess contribution tax.

hrblock does the same thing.

who is right?

If i use prior year testing for ADP & ACP, can i use top paid group election to determine prior year's HCEs if I didn't use top paid group election last year???

Does a plan that is setup in the plan document as a cross-tested 3% Safe Harbor and makes a 100% up to 4% match subject to ADP/ACP test? The safe harbor notice was also done as a 3% Safe Harbor.

I am a college student that works during breaks from classes. I don't earn $3000 a year at these jobs and therefore not able to contribute the maximum to my Roth IRA. I have some money in a savings account and also some money in stocks. My two questions are: 1.) Does the interest from the savings account count towards my earned income, abling me to contribute more than I made at these jobs. And 2.) does the dividends and/or captial gains count toward my earned income, allowing me to contribute more than I earned at my job? thanks for the help.

I just opened, contributed and transferred some of my ROTH IRA

mutual fund to a brokerage account.

I would like to know if I make profits (capital gains) meaning selling

individual stocks, options, mutual funds or dividends/interest rates,

are they taxable even I have not withdrawn/distribution from

the brokerage account.

What about wash sale rule and 3K loss for the year does that apply

as well for ROTH IRA-retirement accounts, maybe only if withdrawn

earlier or before 59 1/2 years old?

I would appreciate any comments, advises and suggestions on this matter.

Is buying individual stocks/stock options/possibly selling short a good strategy to make on ROTH IRA accounts to save paying taxes, of course when

only realize a capital gain?

JG

Our client is the plan sponsor and plan administrator of a multiple employer 401k plan (not collectively bargained). In 2001 the plan was a safe harbor plan and safe harbor matches were required to be made by each participating employer pursuant to the participation agreements. There were about 20 participating employers in the plan in seven control groups. The participating employers in one control group have refused to make the 2001 safe harbor match for their employees - now over 1 year delinquent.

Any suggestions for what actions are available to pursue the delinquent contributions? Are Participating Employers fiduciaries as to their employees? Can the Plan Administrator bring a breach of fiduciary action? Should the plan sponsor just cough up the money and seek recovery from the delinquent participating employers through litigation or go straight to litigation and leave the obligation outstanding? Ugh.

Is an Accountant's Opinion required for a funded welfare benefit plan with fewer than 100 participants?

Just starting to get in data for 1/1/2004 valuations and wanted to make sure that I am up on the changes effective for 2004 in the current liability calculations (absent any corrective legislation).

To confirm:

EGTRRA repealed the "OBRA" Current Liability Full Funding Limitation effective for plan years beginning in 2004, right or wrong (so I assume that I still need to calculate RPA '94 Current Liability for the 90% threshold).

The RPA '94 CL range goes back to 90%-105% as the 120% change was only in place for 2002-2003 years, barring any future legislation.

PBGC variable rate premium goes back to 85%, rather than 100% of prior year's 30 year treasury rate.

I figure that some valuations may need to be redone (at lease as far as CL goes) if future legislation provides relief, but I would like to make sure that I'm not missing anything on the CL calc side.

Customer establishes brand new SIMPLE IRA w/an effective date of 12/31/03 and mails check w/a check date of 12/31 but instructs us that the contribution is for 1st payroll in 2004.

When are SIMPLE IRA contributions "deemed" to have been made? The date the check was cut or the date in which the financial institution received the funds?

Highly comp employee over age of 50, makes $270,000. Employee defers $12,000 + $2,000 catch-up contribution. Employer's match is dollar-for-dollar up to 6% of wages. My feeling is the employer match is limited to 6% of $200,000, which is $12,000. There should not be a match of the $2,000 catch-up contribution.

Is that correct? Thanks.

Does an employee participating in a 401(k) Plan who is still working, but not an owner, have to take the 70 1/2 Required Minimum Distribution? Thanks!

Does anyone use this part of the Relius Administration System? If so, to what extent to you use it?

I know this has probably been asked, but I was wondering can an employee be reimbursed for over the counter medications prior to the ruling made? I have a claim that I got for a date of service for 4/26/03 and was wondering if it was eligible for reimbursement since it was prior to the IRS ruling of over the counter medications.

Does anyone know what penalty can be imposed for late distribution of an SAR?

Thanks!

Ok, I have a cross-tested profit sharing plan. Group 1 is shareholders and their spouses. Group 2 are HCE's not in Group 1, and Group 3 are all other participants. In Group 1, the goal is to maximize the 2 employees at $40,000. However employee #1 has $200,000 in comp. and employee #2 has $160,000 in comp. Don't they both have to receive the same percentage of allocation, even though that does not get employee #2 to maximize at $40,000???? I cannot have them both receive $40,000 right?

Employee #1 = $200,000 x 20% = 40,000

Employee #1 = $160,000 x 20% = 32,000

Isn't that what they should receive? I can't give employee #2 $40,000 b/c it would violate the same percentage allocation right?

Thanks.

Can someone tell me exactly how accrued interest is calculated for purposes of reporting a defaulted loan on the 1099-R.

A plan sponsor timely adopted for GUST but failed to adopt the RMD final reg amendment by 12/31/03. Where are we now? Non-amender? Help!!

We have a 5,000 annual health FSA limit. Employee's spouse also has an health FSA with 5K limit. It is my understanding that unlike the depednent care fSA which limits to 5K between both of them , that the healthcare FSA is a plan limit adn employee can do 5K in our plan and his posue can do 5K in her employer's plan, correct?

At this point, my wife and I are under the "salary cap" for contributing to a Roth IRA, and we both are actively contributing to our accounts. What must we do with our existing accounts if our incomes exceed this value in the future, and we are no longer eligible to contribute? Do we need to somehow convert these accounts, or are we allowed to have them, just not to make any further contributions?

Thanks!

We have a client, here in California, who is interested in adding automatic enrollments to his Plan. I remember reading that there is an issue in California regarding the legality of automatic enrollments and whether the state law is preempted by ERISA.

Has there been any further guidance in this area?

Is there any one here in California with automatic enrollments in their plans?

As always, thanks for any suggestions.