In 1998, I converted my traditional IRA to a RothIRA. The value at that time was $400000 and I elected the 5 year option. I subsequently filed and paid the taxes due on my 1998 and 1999 returns..still have to file the rest. The value of my investments has now dropped to $125000 and I dont have the cash to pay the remaining taxes. What are my options here? Thanks.

It's my understanding that school districts, as quasi-government entities, are exempt from ERISA Title I, but not from Title II.

It is also my understanding that in order for ANY 403(B) annuity contract, or 403(B)(7) custodial account to be a "valid" contract, it must contain ERISA's anti-alienation language.

Finally, it's my understanding that when Congress passed the Retirement Equity Act of 1984, establishing QDROs, the intent was to provide an exception to the anti-alienation provisions of both ERISA and the Code, since the antialienation provision and ERISA's broad preemption provisions conflicted with state laws designed to ensure that individuals satisfy their family support obligations.

So help me with this logic. If the only Code Sections that a district 403(B) plan must adhere to is anti-alienation...

AND

if the concept of QDRO is an exception to anti-alienation

THEN

I can't see how school district 403(B) plans exempt from QDROs?

Second question, if the answer is that the district must adhere to REA QDROs, due to the anti-alienation exception, what else under REA must non-Title I plans adhere to?

I can think of spousal consent on beneficiary designations or loan consent as additional inclusions, since without it, what would stop one spouse from naming a non-spouse beneficiary (let's assume it's not the kids or a trust) or taking a maximum loan from the plan prior to filing for divorce?

Replies welcomed...

The California State Senate Appropriations Committee passed Senator Jack Scott's bill to make California Revenue and Taxation Code conform to the retirement provisions of the Federal Internal Revenue Code amended by EGTRRA:

http://www.pensioninfo.org/2002_01_01_acv.html#9158669

I have a Cross Tested PS plan that defines compensation for allocation purposes as comp while a participant. The plan is also Top Heavy. The Top Heavy definition of comp is for the entire plan year. If a partipant's Top Heavy allocation is greater than his plan formula allocation, which compensation is used for testing?? Thanks.

My emplyer lost my enrolment form for our cafeteria plan, they made no attempts to track who had receaved a form much less who had turned it in. They claim I have lost the benifit because of this. lOTS OF PEOPLE NEVER TURNED IN THE FORM several peop0le do not even know it was offored.

I had trouble just getting a form human Resourse handed the form to a supervisor who threw them on a counter 4 days latter when I came to work they were all gone. HR said they had no extra and I needed to track down one on my own. I did filled it out made a photo copy and turned it in.

My election was 2500. so my tax savings would be $700. 2 weeks pay. this is real money to me.

HR says its my FAULT AND I LOST THE BENIFIT.

I have a phot copy for the form I turned in. what can I

I submited a enrolment form for my employers cafeteria plan, for the maximum withholding of 2,500. It took me over a week to find a coworker who could give me a form. Human Resourses just gave them to a suppervisor who left them on a table 4 days later when I came to work they were gone and HR refused to give me a copy said they " didn't have enough to give them to every one who had lost them" I finally found a form, photo copied it and turned it in weeks before the deadline.

My employer lost it and never bothered to contact me. Never bothered to check on whos they got back and whos they didn't. or any one elses.

They now say I am not elegiable for the beifit even though I have a photo copy of the form they lost.

My tax savings on 2,500 witholding would be approximently $700. This is over 2 weeks pay for me. Real money. what can I do.

They form said it must be returned even if we were declining the benifit. We were repeatedly told they would hunt down any one who failed to turn it a form. That they leagely had to get a form back one way or another from us. Now HR says law changed and its "Gloria's fault"

I know this sounds lame, but I don't know how I begin to open an R/IRA account. Is this something I do at a bank? Or is this like a Savings Bond, something the Government sponsors and I contact them? How does it (my money) earn interest? Is there a fee involved? I want to start, it's long past the time I've begun to save (I'm in my late 40s), but I don't know how or where to begin. Thanks in advance for any guidance you can give me! ..Zoe

PS I've read many of the other replies (mostly by John G, thank you ) but the wrinkle is that I am on LTD, and although I am very lucky to have this, it is not something I can count on, as it is reviewed regularly, and the insurance company is basically in the business to *not* give out money if it can avoid doing so -- therefore I want to take advantage of this while I do get LTD, but with a look to the future where I may have only my SSDI as income if my insurance company does not renew my policy. Thanks again!

I have an employee who changed shifts ;i.e. from day to night

He elected $ 5K for his dependent care for 2002

As a result of the shift change he doesn't need a daycare provider for his children

Can he cease daycare deductions?

Thanks:confused:

I need some guidence because I'm lost at this point.

66% of Company A's partners in an LLC decide to start a new business (Company B also an LLC) effective 1/1/02 and resign from Company A. Company B's partners (formarly of Company A) establish a 401(k) Plan.

Company B says that this is a spin-off Plan and participants do not forfeit their non-vested account balances (Company B also recognizes service from Co. A for Vesting). The new fund custodian wants a transfer of all the participant account balances under Company B (probably for commission, etc.)

Company A says the Partners resigned, and as such, are not subject to rights from a spin-off (i.e. they will forfeit non-vested account balances). Additionally, Company A says as terminated participants, they have the protected benefits for receiving their account balances (lump-sum/rollover).

Of course, the "Redemption Agreement" says nothing about the Plan.

Any suggestions as to who is correct?

Has the IRS opened its determination letter process to sponsors of cash balance plans? Thanks. Ed

ERISA 403(B) arrangement is invested entirely in a group annuity contract (GAC). The arrangement includes salary deferrals and employer matching contributions

Employer wants to restate document and transfer to a custodial account environment (assume there are no issues related to withdrawal from GAC).

Given that in-service withdrawals of matching contributions is allowed under the GAC (and under the existing plan), but is not permitted under a custodial account (see 403(B)(7)(A)(ii)) -- is there any way to move to the custodial account environment without causing a cutback of the in-service withdrawal feature, as it applies to matching contributions, rollovers, etc.

Your comments are appreciated.

I understand that if a controlled group maintains seperate plans, that for HCEs, the ADR is run combining compensation and deferrals from both plans. However, what about NHCEs? It doesn't appear that we combine deferrals. Does that also mean that we do NOT combine compensation. HELP.

If a Dependent care Reimbursement Account Plan is discriminatory (fails the 55% utliziation test) the amounts received as reimbursements under the plan are taxable to HCE's.

If, for example, the plan is discriminatory for the 2001 plan year, and the HCE has expenses that are reimbursed during the run off period in 2002, are those amounts taxed in 2001 or 2002?

It seems to me that the impact of failing the test is that 129 does not apply to the HCE's. Therefore reimbursements for dependent care are taxable when paid. But can the employer use the same rule that is available for reporting dependent care expenses on Form W-2 and treat the estimated reimbursements as taxable income in 2001 (if the employer is comfortable that the employee will in fact have the expenses)?

Thanks-

card

We are trying to calculate a sole proprietor's net earned income. Our problem is the starting point. We have been told to use Schedule C line 31 (for a sole proprietor). We have then been given some conflicting information with regard to adjustments to arrive at the final earned income number. Does anyone have any information they can share with regard to this calculation? We deal with mostly 401(k) plans, so it complicates the issue. Any help would be appreciated.

Can the IRS model forms (5305 series) be used to establish IRA annuities for insurance companies? Or are insurance companies which offer deferred retirement annuities required to put together a prototype plan

I am getting conflicting research. One source says insurance companies cannot use these model forms, but some of these forms themselves refer to insurance companies.

Sooo, which is it? Thanks.....

The plan sponsor is a law firm. Currently the law firm sponsors two qualified retirement plans, one plan for Senior Counsel and another for staff ans associates. The plan sponsor indicated that they are looking to add another plan for the Senior Counsel that they called a "LEO" plan. The plan sponsor indicated that this plan was "created" by PriceWaterhouseCoopers. Does anyone know anything about this so called "LEO" plan?

The plan sponsor is a law firm. Currently the law firm sponsors two qualified retirement plans, one for Senior Counsel and another for staff and associates. The plan sponsor indicated that this plan was "created" by PriceWaterhouseCoopers. Does anyone know anything about this so called "LEO" plan?

The plan sponsor is a law firm. Currently the law firm sponsors two qualified retirement plans, one plan for Senior Counsel and another for staff and associates. The plan sponsor indicated that they are looking to add another plan for the Senior Counsel that they called a "LEO" plan. The plan sponsor indicated that this plan was "created" by PriceWaterhouseCoopers. Does anyone know anything about this so called "LEO" plan?

If a company elects in the loan procedures "any reason" for loan distribution, will this be subject to scrutiny from the IRS should they be audited? Should the company be more strict in their policies?

Does anyone know of a central location/list of states which require a W4P equivalent for state withholding and what they

require? A co-worker is especially interested in whether any

of them use marital status identifiers ('codes') beyond just Married, Single.