Would Boutlinum Toxin Injection be reimbursable under the Medical Reimbursement Account? This claim was denied due to the fact that it was not recognized as being approved by the FDA. The diagnosis code is for MS.

I'm trying to determine whether to answer "yes" or "no" to 1a on schedule E for a new leveraged ESOP plan. They do have a securities acquisition loan, but the question says "within the meaning of Code Section 133".

Based on a 5500 reference book, that author's opinion is that the answer is "no" if they do not have a security acquisition loan made BEFORE the effective date of the repeal of Code Section 133.

Agree?

I have a calendar year plan with a proposed termination date of 3/31/02.The estimated plan termination liability @ 3/31/02 is $302000.The actual number will be determined and contributed after the PBGC's 60-day mandatory look expires,probably late in July or early August.The plan sponsor's FYE is 2/28/02. His normal plan contribution for PYE 12/31/02 would be deducted at 2/28/02.Assuming the plan term liability is at least equal to his 412 minimum,can it be deducted under 404(a)(1)(D)(iv) as amended by EGTRRA 652(a) @ 2/28/02 ? The plan's attorney and CPA are nervous about the fact that the term date is after the FYE,but I think the deduction is still OK because it's attributable to the 02 Plan Year.

Any comments or thought would be appreciated.

I think this sort of ties into a couple of other threads here, but I wanted to throw this out. Here is the situation:

A safe-harbor 401(k) plan (3% non-elective) which has a 2 year wait to receive a profit sharing contribution. The way the groups are set up, we can maximize the owner group by giving a 5% contribution to the rest of the employees. The original thought was to just give the 3% to the employees who had not met the 2 year profit sharing requirement. However, after doing more reading (and what fun and exciting reading it was), I cannot find anything that would allow us to to do that. It appears that we have to give all NHCE's a 5% contribution, including those that have not met the 2 year requirement.

In this scenario, the 2 year wait really doesn't benefit them at all. In fact, it requires them to fully vest the entire contribution rather than being able to set the additional 2% above the safe harbor to a vesting schedule.

Do you agree? Just wanted to get other thoughts on this. Thanks in advance.

Hello,

I recently opened a ROTH IRA with Ameritrade.

I believe in additon to investing in a fund, I am allowed to buy/sell stocks within this account.

How do buying and selling stocks affect my taxes at the end of the year?

If I realize a gain on a short or long-term trade do I have to pay a capital gains tax?

and conversely if I realize a loss can this be deducted when I calculate my year end taxes?

Or are gains/loss tax implications not recognized since they are within a ROTH IRA.

Thanks for your help.

sgj

As Pension Administrator for a TPA, I have made a serious error in analyzing a new plan's first-year testing. It may cost me my job, but since my boss won't explain it to me. I am asking a board expert to explain. Here goes: The 401(k) plan was effective 04/01/00, plan year end 03/31/01. Assume deferrals began 04/01/00. HCEs are 4 Owners/Officers and 1 Employee who earned more than $80k in prior year; he did not defer. I tested top heavy for the beginning of the 04/01/01 PY. but since it was the first plan year, I should have tested as of 03/31/01; the plan was top heavy for the 03/31/01 PYE. The ADP Test may have also failed because we are not sure what comp the client used (I am not allowed to call the client and clarify). Plan's definition of comp is W-2 wages from entry date (dual entry). The Client did not make a Match or Discretionary contribution. Can a 3% Safe Harbor Match be made retroactive to the 03/31/01 PYE to NHCEs to satisfy both the ADP Test failure & the Top Heavy status? By what date do employees need to receive the Safe Harbor Notification? Today I received the census data for the 03/31/02 PYE. And again the client states no employer contribution. He does not know that the plan is top-heavy. I appreciate any guidance! Thank you!

The latter can determine probability of death by sex, race, job type and possibly lifestyle, whereas the former can tell you all of the aforementioned, as well as when, where, and possibly by whom...

I have a partial IRA conversion to ROTH IRA (in 2001) that consists of stocks. SInce then, my broker sold some of the stocks and purchased new ones. Can I recharacterize my conversion (based on the amount I converted) or do i have to recharacterize individualo stocks?

If I recharacterize this year (was last year's conversion), can I still make a new (another portion of my IRA) conversion this year, without messing up the other recharacterization? CAN I do all this with the same custodian, or am I better off shift the amount I want to convert to another custodian and then do the new conversion?

Thank you for any suggestions.

A private tax-exempt organization has a 457(f) plan and are restructuring and will become a for-profit organization. In order for the participants to avoid immediate taxation, can they set up a Top Hat plan for the newly structured company and allow the participants in the 457(f) the opportunity to elect to defer all the income they will receive from the 457(f) due to its termination?

Or, can the new company just assume sponsorship of the "frozen" 457(f) plan and distribute the income as initially provided in the agreements?

I have a client who has a fringe benefit plan with over 100 participants that has health insurance paid partially by the employer and pre-tax through a cafeteria plan by the employee. They also have dental paid pre-tax by the employee. The client also has a welfare benefit plan for STD paid after tax by the employee and LTD and Life Insurance premiums paid by the employer. Do I just need to file a 5500 for the welfare benefits and Sch. A? In filing the Sch. A how do you know when to report as experience or non-experience rated? HELP!

I have a plan that has been fully funded for the past 5 or so years. It is my understanding that when filing the schedule B it is okay to be out of balance (i.e. Unfunded Accrued Liability does not equal Outstanding balance of amortization bases less credit balance less reconciliation account). Thus, I have been out of balance for years. The valuation for 1/1/2002 produces a positive Unfunded Accrued Liability. How do I balance my equation of balance? Can you simply use a "Balancing Base" (simply the difference in the equation)? If so, how many years can you amortize this over? If not, what is the procedure to get back into balance?

I have a 401(k) plan with deferrals only, no match, no P/S contributions. The company owns a number of different entities and we recently established that a control group exists with 3 other companies. 2 of the companies have employees and offer a Simple Plan to approximately 30 participants. What will need to happen as far as including these companies with the 401(k) qualified plan? Do they have to be included under the plan, what about testing?

We have a participant in our 401(k) plan that is trading large sums of money between an international equity fund and an investment contract fund, creating a need for idle cash in both funds to meet his liquidity needs.

Has anyone had to deal with a participant or group of participants on this issue?

The investment contract fund is only available to our participants which makes it easy for us to modify the trading priviledges, but how have you dealt with the investment funds that fail to enforce their own market timing trading restrictions?

Thanks,

Mike

we have a plan that allows insurance to be purchased. 1 person in this profit sharing plan took advantage of this a few years ago. 2 years ago the insurance company where the policy was purchased demutualized and the policyholder received shares of the insurance company. should these shares now be included in the value of the participants assets (in addition to the value of the policy)? or does he own them individually?

any comments are appreciated. thanks.

NQDC "account" plan informally funded with life insurance and mutual funds through a rabbi trust. Death benefit includes a 4-year payout to named beneficiary equal to a declining percentage of then base pay, plus the then theoretical CV of insurance at executive's death, so long as the insurance DB does not exceed sum of aforementioned.

Query on taxation to beneficiary, as Medicare has been withheld annually by employer. What is taxable to the beneficiary as to the four annual death benefit payments? Ordinary income only or income reduced by both FICA and Medicare taxes?

How does taxation issue change if beneficiary is the participant's revocable (now irrevocable) trust?

I'm a TPA and I get requests for determination letters from terminated participants of the plans that I administer that wish to rollover their money to a new employer's qualified plan. It is my understanding that this is no longer required by law but I can't find the exact law that changed this. We deal with a lot of prototype plans and the determination letter doesn't have the name of the client on it so I hate doing this because it never satisfies the new employer. I then have to give them a copy of the Adoption Agreement.

Any help on where I can find the law so I can show these people that I don't have to give them anything.

I would greatly appreciate it if someone could explain why all existing IRAs are considered in the tax formula, when a conversion of one IRA, which contains only after-tax contributions, is converted to a ROTH. And, also what exactly is pro-rata? I just doesn't seem correct that existing IRAs should enter into the tax formula on form 8606. Maybe I am wrong.

:confused:

I have two IRAs, a traditional (rollover on the basis of a QDRO), and a Roth. I'm currently trying to assemble the down payment for a first time house purchase.

What are the rules governing borrowing from IRAs under the "First-time Homebuyer Affordability Act"? Would I owe interest, or just the principal? Are there any timeframes within which the funds need to be replaced?

I believe that for Roths it's a qualified distribution rather than a loan, but I need confirmation of this.

And which would be more advantageous to withdraw funds from, the rollover IRA, or the Roth?

Thank you for your assistance.

Are there reasons why an employer cannot terminate a 457(B) plan and distribute account balances to participants? The plan in question is not a governmental plan. I know that benefits under a 457(B) may not be distributed earlier than age 70-1/2, separation from service or unforeseeable emergency. But, it would seem that the employer ought to be able to terminate the plan and distribute benefits despite these restrictions. What am I missing here? Thanks.:confused: