Individual received W-2 wages of $5,000.

Individual is also a sole-proprietor. His tax filing shows self –employment loss.

Can he still make an IRA contribution even tough his tax return shows a loss?

A private sports club with a "no tip" policy for guests collects contributions from guests towards a Christmas fund and distributes to service personnel who are employed on the last day of the plan year?

ERISA plan, or no?

I have a plan with the following:

412 Traditional FFL = 4,442,637

RPA FFL = 0

Normal Cost + Amortization of Bases + Interest = 944,838

FSA Credit Balance = 0

Is my minimum required contribution $944,838 ?

Hello everyone!

I need some help. I currently have a traditional IRA that I have already contributed $2K for 2001. The balance is around $7,000 and I'm 32 yrs old.

I have already sent in my tax return for 2001 to the irs.

I'm interested in opening a Roth IRA before April 15th (I know I'm cutting it close . If I open a Roth for year 2001 will I need to pay tax on that for 2001. If so is there an irs tax form for this?

OR Is it better to wait until after April 15th and open it for 2002?

Also, I was thinking since the market is down I might want to convert the traditional IRA to a Roth. I would do this conversion after April 15th. What is the penalty for this and is this a good idea?

Or should I just keep the traditional IRA .. let it accrue and start a Roth IRA also.

Is there an advantage to having both besides being able to save more? or disadvantage if any.

thanks for your help!

Please comment on these facts:

1.) Full time employee quits job at Corporation A (no ownership of Corp A and no retirement fund contribution for 2001 from A and no salary deferrals during time at A in 2001.)

2.) She sets up LLC and is the sole member and worker. Not an employee and doesn't receive W-2 wages or salary. No payroll is running. Takes draws from the LLC account.

3.) She sets up SIMPLE IRA prior to year end and gives self notice of rights under the SIMPLE.

4.) Total income received prior to 12/31/01 before deductions is $10,000. Business expenses for December will be about $3,000 to $3,500. (Net taxable income should be close to $6,500 before SIMPLE contribution.)

5.) She wants to fund $6,500 max to SIMPLE IRA.

Two questions:

A. Can the contribution be made prior to filing of federal tax return plus extensions? (no regular pay periods)

B. Can she also fund a matching 3%? If so, how do you calculate the amount? 3% of $6,500? 3% of zero (the net after the SIMPLE contribution?

Any insight would be appreciated

Thank you,

Please comment on these facts:

1.) Full time employee quits job at Corporation A (no ownership of Corp A and no retirement fund contribution for 2001 from A and no salary deferrals during time at A in 2001.)

2.) She sets up LLC and is the sole member and worker. Not an employee and doesn't receive W-2 wages or salary. No payroll is running. Takes draws from the LLC account.

3.) She sets up SIMPLE IRA prior to year end and gives self notice of rights under the SIMPLE.

4.) Total income received prior to 12/31/01 before deductions is $10,000. Business expenses for December will be about $3,000 to $3,500. (Net taxable income should be close to $6,500 before SIMPLE contribution.)

5.) She wants to fund $6,500 max to SIMPLE IRA.

Two questions:

A. Can the contribution be made prior to filing of federal tax return plus extensions? (no regular pay periods)

B. Can she also fund a matching 3%? If so, how do you calculate the amount? 3% of $6,500? 3% of zero (the net after the SIMPLE contribution?

Any insight would be appreciated

Thank you,

Does anyone have a sample QMSCO Procedure they would share?

Thanks

You have a 401(k) Plan which also includes a match and profit sharing feature. The company matched in excess of the

402(g) limit for several plan years.

My question is, does the excess match get placed into a suspense account to be used to offset future match contributions (as described under the self-correction program) or, do you reallocate the excess match now as a profit sharing contribution.

Is the answer clear-cut? If so, where can I find it?

Our vendor has prepared a draft of the 2001 Form 5500 and has recommended that distributed loan balances be reported under Schedule H Part II, 5(B) - Unrealized appreciation. Is this an acceptable treatment?

Through a recent acquistion, bank trust department inherited a custodial IRA containing a bunch of loans (none of which are party-in-interest). About 35 loans with outstanding principal on the books at approximate $300,000. Maturity dates range from 2000 to 2010. Under the former arrangement, IRA owner forwarded money & detailed payment information to previous custodian. No payments have been received on the loans for about 13 months, even after several communications with the IRA owner.

Custodial agreement allows trust department to resign after 60-day written notice, distributing assets to new custodian, or if IRA owner refuses to name another custodian, to distribute assets to the IRA owner.

Problem is the distribution value. Would loans be distributed at outstanding value or $1 each?

What is the norm for other DC plans in regards to reemployment after retirement (i.e., after a distribution or rollover has occurred)? Are there restrictions?

Under the Florida DB plan, retirees cannot return to employment for one year after retirement unless they suspend their DB benefits. The same law applies to members of the University Optional Retirement Program (DC plan), however, if a member has taken a distribution or rollover there is no benefit to suspend. In essence, there is "no teeth" to the law for the DC members.

We are a TPA and increasingly have plans across several states. In our state, Ohio, ER's don't pay workman's comp taxes on EE money run thru the Cafeteria Plan. Is this true for all states, or any other states? I haven't found a site to give us this information, and oddly enough, people from other states can't find the information about their own state either! Thanks in advance for any help or comments.

We are a TPA, increasingly doing business across the country. In our state, Ohio, the ER saves workman's comp taxes on money that the EE runs through the cafeteria plan. However, that may not be true for all states - does anyone know how I can determine this? Thanks for any and all help!

I'm I allowed to withdraw up to my basis without incurring a 10%

Penalty.

Example: I have a Roth that is three years old. I have made three contributions of $2,000 and the current balance is $6,600. I want to withdraw $6,000. Does this avoid the 5 Year rule?

Thanks.

I'm new to 457 plans. Under EGTRRA, does a non-profit employer adopting a 457(B) plan no longer have to coordinate deferred compensation limits with a 403(B) or 401(k) Plan? In other words, may a participant in both a 457(B) and a 401(k) plan defer $22,000 (or $24,000 with the catch-up) in 2002, even if the employer is a nongovernmental agency, under the new EGTRRA limits?

Does a plan that covers only Union employees have to worry about passing non Discrim testing. I haven't been able to find anything concrete on this.

I have a straight Profit Sharing Plan w/ a last day of employment requirement. I am fairly ceratin that if an employee terminates I shouldn't use his/her compensation in caculating the 15%. Relius still considers such compensation on the Maximum Employer Contribution Report. How do I make it stop?

A 401(k) plan provides for salary deferral contributions and employer discretionary safe-harbor contributions. The employer wants to add a matching contribution but only make a 1 percent match on a participant's salary deferrals. Is there any way the matching contribution would not be subject to the ACP test?

I have a takeover client that currently sponsors a 20% mp plan. The allocation is prorata on compensation. The plan document is a standardized prototype which requires an allocation to any participant credited with 501 hours.As part of the GUST restatement I would like to recommend a change to a ps plan with a tiered or age weighted allocation, but what must be guaranteed to the current participants? Am I stuck with a comp/comp allocation for all of 2002? Or can I allocate comp/comp on pay through the date of adoption,and tiered thereafter? Are there any other alternatives anyone can think of?Thank you.