Facts:

Client has w-2 income and is a statutory employee covered under a pension plan for company X.

Client also receives 1099 income from other source.

Can he establish a sep for the 1099 income?

I am auditing a MPP Plan that is part of a Master Trust with a 401(k) Plan. How do I report the investments for the MPP Plan on the Schedule of Assets Held for Investment and the Schedule of Reportable transactions . Do I show the entire activity for the Master Trust or do I somehow pro rata just for the MPP Plan?

Does anyone have an opinion as to whether or not sponsors should be submitting prototype plans for determination letters in light of IRS Announcement 2001-77. Typically we deal with clients that sponsor either garden variety non-standardized 401(k) and/or profit sharing plans as well as some cross tested plans which we will be restating under the volume submitter program.

As 2001-77 gives extended reliance that the plan satsfies the form requirements, is there any meaningful reason to submit these days?

We are a family of four. Two adults and two children (minors). I (Arther) work - currently under the income bracket of 28%. I plan to retire in about three years from now probably under the same income bracket (might move out of USA). Have a question on whether to go in for Trad IRA or Roth IRA this year (2001) onwards. I already have a Roth for the yrs 1999 & 2000. Very interested to hear from you.

IRA holder requests transfer of IRA funds from one investment broker to another. The transfer was intended to be a trustee-to-trustee transfer but was instead was miscoded as a taxable transfer.

The IRA holder never received a check or at any time had possession of the funds, however he received a Form 1099 from the investment broker that originally held and transferred the funds. What is the best way, if any, to disclose this error so as not to be required to include the 1099 amount in taxable income for the relevant year?

Does anyone know if 403(B) custodial agreements or plan docements need to be updated by the end of the GUST RAP ?

Will Governmental 457 plans need to be updated the end of the GUST RAP?

Will they need to file for determination letters and does state law play a role in determining if they need a determlnation letter?

My organization's Cobra rates are far below the actual cost of insurance. With a new health plan and rates going into effect soon, we would like to raise the Cobra rates to where they should be, but it is such a significant jump, most people (including long term employees who are now retirees) will not be able to afford it. We thought we could perhaps inform them what the costs will be, but raise them in 2 to 3 increments over a 6 month period. All legal regs I can find say "in general" you can raise rates once prior to a 12 month period. But, if we inform people what the final rates will be, and raise them incrementally to that point, is that acceptable? Thank you.

I will be emigrating to Australia in the next ten years, and can't find out if I can withdraw funds from my Roth Ira penalty free to purchase a first home, considering that the first home will be overseas. Any ideas or comments would be much appreciated!

we have an employer who has not timely deposited his participant contributions for the 2000 plan year. we are trying to calculate the excise tax owed on multiple payrolls that were not timely deposited. for the 'amount involved' is it the interest that would've been earned on the contribution from the 15th business day after the end of the month to the day it was actually deposited? and how do you determine what interest rate is acceptable? will it change for each payroll? is there an "IRS acceptable" interest rate that can be used if the actual interest rate is indeterminable?:confused:

COBRA just notified me today that I am uninsured - the business, which provided my group plan, went 'out of business' at the end of LAST month. COBRA is refunding my premium for the month, but understandably, I would rather have the insurance as I have been deemed "uninsurable" b/c I have a progressive, degenerative illness which is treated with very expensive drugs - hence, the option to take the COBRA and not be insured privately.

I was 9 months into what I thought was to be 18 months of coverage...and as a freelancer, have not worked at a company that offers insurance benefits since leaving my previous employer. (I work in the entertainment business in California)

What options do I have - aside from paying cash for all treatment this month- and is there any kind of notification procedure to former employees that the company that went out of business should have followed? I feel like I have been punched in the stomach. Any input is welcome.

As requested by an IRS auditor, I need to prepare 1988 - 1991 Forms 5500EZ for client. Anyone know where I can get copies of these old forms? (IRS website PDF files only go back to 1992.)

I have recieved a letter from a 3rd party administrator saying thier company pays on a daily basis. They require no reciepts on Medical or Daycare. They say FSA's under 125 need no reciepts they just take your word and tell you to keep the reciept in case of an audit. What law does this fall under & how are we to compete with these people.

This is a subject about which I know nothing. What's the deal on amending, for example, IRA annuity contracts, which specify a maximum non-rollover contribution of 2000 dollars. Does the IRS provide "snap-on" amendments similar to what they released for qualified plans? What deadlines apply, if any, if such contract language changes are required? I suppose this would apply to 403(B), maybe 457 as well? Thanks.

Does anyone have any experience writing (health) plan documents for PEO's? Any advice regarding regulatory issues or special plan wording for these entities would be a help.

An existing 401(k) plan has two types of contributions, deferrals and matching contributions. The plan has a number of participant directed investment options, including company stock of a large publicly traded corporation.

The goal is to obtain dividend deductions paid on qualified employer securities.

Assuming there are no plan design changes (i.e., investment in company stock is at the election of the participant for both deferrals and matching contributions, and participant can exchange freely between investment options):

(1) how would you perform ADP/ACP testing? (2) Would you have two ADP tests and two ACP tests? (3) Would the deduction of dividends be accomplished through a KSOP or a stock bonus plan design? (4) How do you apply the "primarily invested in employer securities" rule, assuming it's relevant??

Any help would be greatly appreciated. Thank you!!

As of 1/1/02 a top-heavy 401(k) plan allows immediate entry for deferrals,but requires 1 year to be eligible for the tiered profit-sharing allocation. The immediate entrants get the 3% t/h minimum. Must they also be "topped up" to 5% (or 1/3 of the highest HCE allocation rate)? Or does the mandatory disaggregation of the (k) and (m) portions govern and only those eligible for the ps allocation are subject to the gateway?

Just a refresher. If you have a 401(k) safe harbor plan with 1 year(1000 hrs) and 21 for eligibility and later decide to amend for immediate eligibility to defer and keep the 1 year for safe harbor and the plan is top heavy. The result would be to still give the safe harbor to those that satisfy the 1 year eligibility, but also give the immediates a top heavy min. contribution?

Any suggestions

If a check for a contribution to an IRA bounces- what happens to the earnings that accrued on the amount while it was in the IRA?

A MPP plan wants to change their plan year end from 10/21 to 10/31. From what I've read under Section 412, the minimum funding is required for all years. They do not want to make a contribution for the 10-day short year. Any input/experience with this is appreciated.