Thank you for your responses.

Please help me answer the following question:

An individual makes only $40,000 in 2001. On 12/15/01, she gets married and files a joint return for 2001 with earned income of $200,000 ($40k from her + $160k from new spouse) Can she make a Roth IRA contribution for 2001 because she was single most of the year and only made $40k? Or because she was married by 12/31/01 does that put her over the limit ($160k) for making a contribution? Thanks.

Does anyone know if there are any special rules for starting these plans? I know you can avoid ADP/ACP testing, 5500 preparation until assets are over $100,000. Are there prototypes specific for these?

A VS Practioner failed to timely file its 401(k) VS Plan by 12/31/00. Unless an employer adopts or certifies adoption of a different, timely filed M&P or VS Plan, doesn't the VS plan of the employer in effect become an individually designed plan that (assuming a 12/31 or 1/31 year end) must adopt the GUST amendments by 2/28/02? Does this Plan have to be submitted for a determination letter on Form 5300 by 2/28/02? If not, can the plan adopt a snap on GUST Amendment, wait for the late filed VS Plan to be approved, then restate using the late but approved VS Plan, and then submit for a determination letter?

Plan's NRA 65

Plan's Early Retirement Age 60.5

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Is it true that normal retirement age must be defined at least 59.5 thru 65 maximum?

If plan has early retirement provision, does this mean that the retirement distributable event is the early retirement age (provided that this is 59.5 - 65)?

We have dealt with a number of amendment requests for the individually-designed plans we submitted, but for the most part the requests were reasonable. If not, we have been able to avoid doing the amendments by pointing out that the particular language did not apply to the plan.

Now, however, we have begun receiving amendment requests that make no sense, and the agents insist that the language be put into the plan. For example:

1. An agent insists that the direct rollover language for a defined benefit plan include the new wording to specify that a hardship distribution is not an eligible rollover distribution

2. An agent insists that the plan language dealing with excess annual additions in a money purchase pension plan include in the list of reasons why an excess occurred "reasonable error in determining the amount of elective deferrals (within the meaning of section 402(g)(3))". . .

3. An agent wants language added to a defined benefit plan to specify several things (and methods) regarding "old law" benefits, "pursuant to Rev. Rul. 98-1". The language just does not apply to anything in the plan. How to convince the agent is another matter.

Have you run into this problem and, if so, how did you handle it?

COMPANY XYZ HAS THE FOLLOWING FAMILY MEMBERS WITH OWNERSHIP IN THE COMPANY.

FAMILY ONE

SON OWNS 49% IS PARTICIPANT

FATHER IS PARTICIPANT

MOTHER IS PARTICIPANT

FATHER AND MOTHER ARE CONSIDERED KEY EMPLOYEES DUE TO INDIRECT OWNERSHIP.

FAMILY TWO

FATHER OWNS 51% IS PARTICIPANT

SON 1 IS PARTICIPANT

SON 2 IS PARTICIPANT

SON 1 AND SON 2 ARE CONSIDERED KEY EMPLOYEES DUE TO INDIRECT OWNERSHIP....

ARE THESE PARTICIPANTS ALL KEY EMPLOYEES OR IS THERE DOUBLE ATTRIBUTION IN EITHER CASE??????

Wondering if I could get some information on what health benefit options are offered by your companies (names, types of plans, how many different options do you offer, etc.). Any information you can provide would be helpful.

Thanks

There are those moments where any trace of true grace abandons me. But none greater than the following:

To set the stage, I had been carpooling to work with an old friend for more than a year. One day, when it was her turn to drive, she picked me up and already had a passenger. He was known to me from a position I had in the company years earlier. We were friends then and I saw no reason not to assume all was the same between us and with us.

Unfortunately, as I would soon discover, I knew nothing about this person anymore. As we entered traffic, I began to tell about my day. It had been particularly brutal, as had been the last several months - thanks to some business transformation pains. My language was a little colorful. To this, my carpooler advised me that the other person may not appreciate my language. I had never known this to be true - and in fact scoffed at the notion. "Not from what I recall" I said. Then proceeded to recall that he could throw the colorful language around himself - back in the day. To this he informed me, that as he had gotten back to his religion upon marriage, he would prefer I tone it down.

I looked for something else to talk about. I seized upon his marriage - something I would not have known about until this moment. Then I proceeded to tell him how happy I was for him - given that, in the day, his heart had been broken by his then girlfriend (insert a few choice words about the way she treated him) and I ended it by saying: "I'm soo glad you are away from her." To which he replied: "Actually, we got back together, she's now my wife."

It continues............

I glanced out the window to see a car alongside us. I won't go into make/color - for fear of offending anyone else - but it was a certain color scheme about which I remarked: "Who would buy a (insert car name here) in that color? To which my - probably now former friend - remarked: "Actually, I just bought a (car name) in that same color scheme with those same wheels."

There was nothing to say. I was mortified. My carpooler was about to jerk the wheel into the bridge support to end my suffering. She was somewhere between crying and hysterical laughter. This had all transpired within two minutes!

My former coworker and friend was cool and collected - but certainly serious in all his answers!

This could not have been worse! I managed to offend, insult and make a complete you-know-what of myself in the matter of these two minutes.

I found out later his only comment was: "Well, he hasn't changed". Not sure what that says about me?

Not sure this belongs under "humor" - but I am assured by those that know the story (other than those present) that it is funny - to anyone who wasn't there.

Our tax preparer didn't know the answer to this one - I'm hoping someone here can help me. I know that I can deduct contributions to my children's education funds, but if I were to contribute money for them to go on a church-sponsored mission in the future, would this also be allowed as a deduction?

Any information would be much appreciated.

-- LyndaG

If a Canadian resident alien has terminated service from his U.S. company and moved back to Canada, is there a way he can "rollover" his 401(k)/Profit Sharing Balance from his U.S. company into a Canadian "IRA".

We've had a number returned with no forwarding address - company is out of business & plan is termed. Is the proceudre for locating these people the same as for missing participants that haven't been paid out? Or given that we've made an attempt to mail the form once do we need to go any further?

Thanks

I am trying to determine how to test using the Accrued to Date Method as opposed to the annual method and am having a hard time finding any guidance on how to do this. Does anyone have a good cite?

I greatly appreciate it.

Our 403(B) plan allows part-time on call (PTOC) employees to make unmatched contributions. During the calendar year, many of our employees' status changed from full time regular (eligible to make matched contributions) to PTOC. For testing purposes, if their status is PTOC at the end of the calendar year, can we exclude them?

Client made excess deferrals of $1200 in 2001. With market being down there was a loss so only $800 was distributed. What is the correct coding on the 1099-R. Our paying agent issued one showing the $800 in box 1 and $1200 in box 2A, but shouldn't the loss be reflected somewhere on the form as well?

Can an employer's COBRA notification include the Health Care FSA information required? Or does the health care FSA need a separate notification and election form? Thanks

Can an employer's COBRA notification include the Health Care FSA information required? Or does the health care FSA need a separate notification and election form? Thanks

Need help with this one!

A COBRA participant is getting a divorce. He has a soon to be ex- wife and two children. Does everyone qualify for a secondary event? 36 months? Just the wife(ex) and children? Who's policy do the children fall under? and Who is entitled to a notice?

Thank You

Anyone heard of changes to be made to the DOL's Delinquent Filer Voluntary Compliance Program? DOL personnel recently stated to me that changes were coming very soon , but she couldn't tell me what those changes were?

Please Help!

Here's a question I can't seem to find any straight answers on.

A COBRA participant is getting a divorce. His wife (soon to be ex) and 2 children are all listed under his COBRA. What happens now?

Do ALL famliy members receive 36 months? Whos COBRA will the children fall under? Who gets notices?

Thank You!