A few months a go I transfered my assests from a 1998 Roth IRA conversion from a mutual fund company to my brokrage account with TD Waterhouse (I did this to aviod the fees Waterhouse charges) I did not realize at the time it was put into a non-retirement account. Thus it was treated as a withdraw from my Roth-IRA account and I will have to pay the penalities. I had no intentions on having this happen I feel TD waterhouse should of ask me if I wanted this transfer into an Roth IRA account (which I didn't have one with them). The fund company that I transfered from said they would have ask. Waterhouse is working on the problem so I still hope they can undo it some how. Does anybody have any ideas on this predicament I'm in Thank-you

I understand that Traditional IRA to ROTH IRA conversions have the five year holding rule. It's also been told to me that each conversion has a separate holding period based on when it is made. Need to confirm when this five year period begins. Is it calculated from the exact date that the money moves into the ROTH, such as five years from February 6th ?

Can someone point me in the right direction for the taxation of Travel Assistance benefits for employees and spouses? I don't have the full details yet but I am told the program primarily provides referrals so employees can find English speaking physicians whereever they may be traveling.

Thanks!

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According to the Tax Act of 2001, if adjusted gross income is below $30,000, 50% of contributions to an IRA or 401k is eligable for a tax credit up to $2,000. I am retired, but working part-time. My question: Does this include a Roth IRA? Also, can the $2,000 be a combination of Roth IRA and 401k?

My mother has been married to my father for over 30 years but hasn't seen him in over 25 years. As far as we know, he did get remarried without getting a divorce from my mother. She has a 401k with her former job and wants to roll it over or put it in an IRA. Does she still need his consent or is there some type of waiver she can get? Any inofo on this matter would be GREATLY appreciated.

As a general rule, IRS Form 5310-A must be filed at least 30 days prior to a plan merger. The filing requirement is waived for the merger of defined contribution plans that meets requirements specified in the 5310-A instructions. Does the waiver of the 5310-A filing requirement also mean that the merger could take place contemporaneously? For example, could an employer adopt merger resolutions on January 31, 2002 and make the merger effective the same day?

I realize that there are GUST/EGTRRA update issues for both plans, but, for now, just want to focus on this (potential) timing issue.

Thanks.

Does employer's health insurance plan qualify for section 125 when the only benefit for the employee is that his contribution(20%) is pre-tax? This is a H.M.O. which is negotiated with the employer through collective bargaining.

With the new daily valuation products available, it seems that a lot of services are using cash instead of the “normal” accrual method. The convenience of this is obvious. Is there any support by the DOL or IRS on taking this stance?

If I have an existing Roth IRA (say with mutual fund manager A as custodian), can I open a *second* Roth IRA with a different custodian?

In other words, if I have a Charles Schawb Roth IRA, can I open a Roth IRA with Fidelity also, as long as my total contributions to the two Roths don't exceed $3,000 each year?

Thanks.

Can a plan include all compensation paid to a participant, even compensation earned prior to the participant's participation date for purposes of determining the 15% deductible limit for 2001?

I am in the process of amending a davis bacon plan for gust. does anyone know if the dol(especially the nysdol) is still requiring an individual IRS letter of determination on these plans? any comments are appreciated.

does anyone know if the dol is still requiring that prevailing wage plans receive an individual letter of determination? I have been asked to update a davis bacon plan for GUST and wondered if anyone has any up to date info on irs plan filings for these types of plans?

Company X has several thousand employees. X Holdings is a holding company which has publicly traded stock. Company X sponsors an ESOP with X Holdings stock. If dividends are declared on X Holdings' stock and distributed in cash to participants or, at the participant's election, are either distributed in cash or reinvested in the stock, who gets the tax deduction, X Holdings or Company X?

Code Section 404(k) provides that the deduction is available to the corporation paying the dividends. Since X Holdings has no employees, does X Holdings merely make a capital contribution to Company X and loses the deduction?

My understanding has always been that the only expenses paid by the plan (as opposed to the employer) be reported on the Schedule C. The thinking being that the C allows the DOL to monitor the fiduciaries of the plan. Therefore, in filing a 5500 for a self-insured medical plan whose funding vehicle is through general assest, no Schedule C is required to report third party administrator fees. Is this correct or do these TPA fees need to be reported on the Schedule C?

I have seen a few custom government pension plan documents that has included a few ERISA sections. For the most part, they include mainly the correct government sections. If a government plan documents includes a few sections from ERISA does the plan sponsor then need to comply with ERISA totally? If not, can the plan sponsor add certain ERISA sections and still maintain that they are a government plan plan and only venture outside for those other sections selected? Example, one of the ERISA provisions included in the plan is the QDRO language, with reference to the IRC. Assuming that there is no state requirement to follow the QDRO regulations, can they do this without following being required to follow ERISA totally?

Could anyone provide me with input regarding how to handle annual employee benefit statements which include a medical plan which is self insured?

I would think that we should use the actuarial fully insured equivalent rate (which is also our COBRA rate) to represent the amount paid by the company. However, how do we explain this to employees?

Any input is appreciated.

Just received the p.s. 58 cost info from an insurance carrier. In addition to the "cost of one year term" they provide "waiver of premium" and "accidential death benefit" amounts. I read somewhere that the 1099-R p.s. 58 amount reported in block 2a is the total of these 3 amounts, but have not been able to find the reference. I think the rationale for including the waiver of prem and AD benefit $$, was these items are "extras," not pure insurance Can anyone help me? Thanks. Maverick

We are a construction management company and are thinking of contracting a superintendent for one of our projects. This superintendent is requesting we cover his worker's compensation. We do not feel we should be allowing/offering this - is this the case? What are the exceptions?

In looking over IRS form 8606 which reports traditional IRA to Roth conversions, I become confused by Part II lines 16 -18.

I am converting my traditionals to a Roth as a result of the large decrease in value they experienced in the latest market downturn. As it works out, my conversion amount (line 16)will be substantially less than my basis (line 17) leaving me with a negative total on line 18 - the taxable amount. Line 18 is then reported on line 15b on the 1040 and will show a negative IRA distribution.

Could this be correct? If it is, I will not owe any taxes on the conversion. It is a significant point that should be brought to the attention of others who find themselves in a similar situation.

Example: Line 16 Amount converted $10,000 (current value)

17 Basis 20,000 (contributions/

rollovers)

18 Taxable Amt. (10,000)

(subtact 17 from 16))

What have I missed? Thanks for the help.

We're testing a cross tested plan using the accrued to date method. The test fails on this and other (e.g. annual method) bases.

The plan requires 1000 hours and employment on the last day to receive a contribution. There's a participant who would have an high EBAR and help the test (because of the accrued to date method), but he didn't receive a contribution because he terminated with under 501 hours, so he's statutorily excludable.

Can we include such people (in the test)? What are the rules for including (in the test) statutorily excludable people who are in fact excluded? If we brought him in, does this mean we have to bring in people who didn't meet the plan's age and service requirements as 0%s?