Due to EGTRRA employers have a choice between a 3 yr. cliff or 6 year graded schedule. If the employer chooses to go from a 5 yr. cliff to a 6 graded schedule, employees with more than 3 years of service will need to decide wich one they want, right? Any comments will be greatly appreciated!

Participant's last day of work is in 12/2001; however he is receiving severence pay until 4/2002. Would his termination date then be 4/2002 or the last day he worked?

Can health insurance be offered to an employee who's work hours change from 40 to 24 hrs? If so, how long? If not, do they need to go through waiting period again when they reach 40 hrs?

i need information on super-integrated plans. maybe an example formula or something. i don't understand them or how the allocation works. from what i do understand of them i think they might work well on some of the plans i administer. either super-integrated or new-comp. but cross tested plans are my weak point. also, if anyone has info on seminars/web-casts/resources that are given on plan design please let me know. i can't find any. Thanks!

Our Cafeteria Plan Provider filed a 5500 for us, as did our 401K provider. It has just come to my attention that our medical/dental/ancillary provider does not file on our behalf. I am certain that I've missed the deadline. At this point can I file an amendment and include this other info on one of the 5500s that have already been filed? Should I bother? I am new at this and have no experience with completing this form. Our Cafeteria plan provider is different from our health provider, does this make a difference in amending the 5500? What do you suggest? We have one medical carrier and one dental/ancillary carrier, our plan has over 100 participants, employees do not contribute. Thanks

When a Participant went on a short two week leave, his contributions were improperly stopped. Of course, he just noticed it now. We would like to make him whole, since we made the mistake. Is there anything we can do outside of paying him outside of the Plan???? Our Plan does not allow after-tax contributions.

Ms. XEC receives $1,000 per year in consulting fees and has an IRA with $3 million in assets. In 2002, Ms. XEC establishes Plan M, a profit sharing plan. Ms. XEC then rolls over $2 million from the IRA into Plan M and makes a contribution of $180 to Plan M. She then wants to purchase life insurance on her life.

Under the incidental benefit rule applicable to life insurance under a qualifeid plan, is Ms. XEC able to pay premiums of (a) $500,000 + or (B) $45?

Employer X is privately held and sponsors ESOP M. If Employer X purchases COLI to fund its repurchase liability, (a) is the inside buildup on the COLI and/or (B) any death benefits on the COLI, subject to the alternative minimum tax?

Dear Moderator, What is the maximum contribution that a well paid department head at a county can contribute in his county 457b plan in addition to his employers match contribution ?

Say our state was in federal compliance, and he being over 50 years of age wished to max out, but the employer was also going to contribute-- then is the max only $ 11000 + $ 1000 (-minus the

employers contribution) ? Or could it be higher than the plan the plan limit of $ 11000 + $ 1000 + ER contribution, for the year 2002.

Thank You

3 months ago mom turned 70 and wants to know does she have to start withdrawing money from her Roth IRA? Can she also continue to make monthly contributions?

We have capital losses, enough actually to enable a transfer of at least one IRA to a Roth IRA with several thousand left over to offset any capital gains in our taxable brokerage account. Think this will fly? I will also inquire with the IRS directly but thought someone here might know. This is my first time here. Thanks in advance for any information.

A 401(k) plan has a fiscal 5/31 plan year. For the plan year ending 5/31/02, is the 402(g) limit $11,000? It seems that there is a difference between cost of living and statutory increases, or does this just apply to the 415 limits?

Second question: For participants age fifty or more by December 31, 2002, can a catchup contribution be made for the 5/31/02 plan year? I read the proposed regs as yes, but am interested in what others think.

Can any one define a goverment organization. In this day and age there seems to be a lot of gray areas, Hospitals, senior centers, mental health organizations, Amtrack, etc..

Is it

Taxing authority

Elected oficials

Board appointed by State, County, City, etc.

Goverment funding - total - partial

:confused:

I make maximum contribution to my employers 401(k) plan. My wife's employer does not offer any retirment plans. Our combined AGI is less than $160,000.

Questions:

1. How much can I contribute for ROTH & Traditional IRA for 2001?

2. How much can my wife contribute for ROTH & Traditional IRA for 2001?

Thanks for your help!!!

My wife and I are over 50 and jointly file on our income taxes. I have a 401K plan which is max'ed out for the year 2001 and my wife's employer does not offer a 401K plan. The last piece of the equation is that my income dropped to 128K this past year and my wife earned 16K.

1) can I, and what is the amount I can contribute to an IRA for 2001. For 2002.

2) can I, and what is the amount I can contribute to a Roth IRA for 2001. For 2002.

3) same two questions as above pertaining to my wife.

Thank you for your assistance.

I have client with a SIMPLE Plan, but wishes to convert to a Safe Harbor 401(k) Plan as soon as possible. No deferrals in the SIMPLE Plan have been made for 2002.

Can you retroactively convert the Plan to a Safe Harbor 401(k) Plan effective January 1, 2002? Is there still a 30 day notice requirement? If 3% nonelective contribution will be used, would compensation be considered for the full year?

Thanks,

Joe

I know that a Safe Harbor 401(k) is not subject to ADP/ACP tests, but what if the employer intends to satisfy the safe harbor requirement using a 3% non-elective contribution and also makes a discretionary matching contribution (subject to vesting) in which the only employees who are deferring a HCEs? Does the matching contribution automatically satisfy the ACP test?

Thanks,

Joe

I'm a government contractor in Germany, and pay no German or American taxes. Am I eligible to open a Roth IRA since my income is tax-free?

What are the consequences if one fails to file a 5500-EZ for a keogh money purchase plan for the year the plan was terminated?

Assume this was the only year that the EZ was due: single participant and balance was always below $100K (at termination balance was approx $2K).

Reg Jones

Are companies that manage Roth IRAs required to report to the I.R.S. a Roth IRA owner's annual contributions, interest payments and withdrawals, or is this solely the responsibility of the Roth IRA owner when he files his annual tax forms?