This one's been discussed before, but I don't see a definitive answer. The regs seem to indicate that receivable 401(k) contributions do not count in a top heavy test. In a prior string, Tom Poje referenced an ASPA conference in 1998 (workshop 44) in which Michael Pruett indicated that certain obligations were to be included. He references a footnote, but the number was blank. Does anyone know what Rev Ruling he was referring to?

What ADA, ADEA, ERISA issues need to be considered when a company provides a supplemental disability plan to executives? If policies can only be issued through age 65 what do you do with a 68 year old? What if the coverage is underwritten and someone is declined for health reasons?

LLC taxed as a partnership (domiciled in Texas, in case it matters). Accountant has provided compensation information to calculate and allocate the contribution for the LLC Profit Sharing Plan for the LLC "members". However, the members have both W-2 income and K-1 earned income.

Is this actually possible?

Thanks!

A defined contribution plan was terminated 12/31/99. No assets have been distributed. There has been no filing with the IRS. Should or must the plan adopt a new plan termination amendment? If so, what options does the employer have for the effective date of the plan termination (any date in the future, 12/31/00, etc.)?

Are SEPs and/ or SIMPLE IRAs subject to ERISA?

Hello all:

I've got a couple of IRA questions and thought maybe you all could help.

OK, say I contributed $2000 to a Roth for 1999 and $2000 for 2000 at Etrade.

Well, in January 2001 I transfered the entire amount to a Vanguard Roth IRA. The entire account balance at the transfer date was $2061. Yes that's correct, 4000 in contributions to a balance of $2,061, oh well.

Anyway, I want to recharacterize the 2000 contribution to a traditional to take the deduction for this year. After tax season, I'll roll it back to a roth.

My question is, if I want to rechar. the year 2000 $2,000 contribution, how will vanguard determine the attributable gains / losses with that contribution? Or, is it just assumed that each 1999 and 2000 contribution is now worth approximately 1/2 of their previous balance.

Obviously, this would have been easier recharacterizing at the old custodian as they have all of my contribution records and Vangard only has the one "transferred" amount and has no idea if the balance is from many years of small contributions or just one contribution in 2000.

Do you understand my issue?

Thanks a bunch in advance,

Marshall

Is it discriminatory if a plan sponsor offers an investment option that has a fairly large minimum investment amount and the only person who will be able to invest in this investment option is the owner? The accounts will be self-directed and the other employees will have the option to invest in this fund, but they will not have the required amount to invest.

When a safe harbor 401(k) plan is terminated, is a 204(h) notice required? If a safe harbor 401(k) plan is amended to remove the safe harbor feature, is a 204(h) notice required? Any special requirements other than a 204(h) notice?

I made a mistake in 98. I was eligible to convert my Traditional IRA to a Roth and did so. I informed my preparer, and also told him I wanted to pay the conversion taxes over 4 years. In mid 2000, I discovered that in both 98 and 99, no mention of my conversion was made on my return. In simpler terms, not a dollar of taxes has been paid on my 98 conversion for two years. I know it is my fault for not reviewing my return more carefully, but there it is. My new tax preparer advises me to wait until I receive a letter from the IRS wanting the tax paid. However, I think I should either report the entire conversion amount on my 2000 return and pay the sum at once, or perhaps, should amend my 1998 return, and perhaps, the 1999 return as well. Any advice given would be appreciated.

My question is in regards to the consent requirements to waive QPSA/QJSA. We have a single participant who died and designated her sister as beneficiary. There was no waiver of QPSA prior to the participant's death. I know the beneficiary can still waive the annuity form of payment, but if she is married, does her spouse have to consent to the waiver?

A participant that has been receiving minimum distributions dies. Wife is beneficiary and also is in the plan. What are the options available for the spouse concerning distribution, rollover, leaving it in the plan, etc? Also will the method of calculating the minimum distribution change? Are there options as to how the spouse calculates the minimum distribution? The deceased and spouse are owners.

Can an employee/shareholder (don't know percentage) of a C-corp contribute to a 401(k) plan and make a SEP contribution based on Schedule C income from a side business? If it makes a difference, the employee did not max out their deferral to the 401(k). What would you use as the limit - would you have to net out the 401(k) deferral from the total amount eligible for the SEP? Any help is appreciated!

How do I report on my 2000 Form 1040 a Roth IRA contribution made in 2000? What Form, if any, do I use?

what is the difference between flexible nonstandardized

safe harbor 401(k) profit sharing plans and flexible

standardized 401(k) profit sharing plans?

To the extent that a self-insured plan is protected by stop-loss coverage, is the plan considered self-insured and still subject to the rules of 105(h)? For example, if there is stop-loss coverage for all benefits over $75,000 annually, is the plan considered self-insured to the extent that benefits exceed $75,000?

If I recharacterize a ROTH IRA to a traditional IRA, how long is the waiting period before I could convert that traditional IRA back to a ROTH IRA?

I would like to open a ROTH for my 14yr. old daughter. Can the money I pay her to do chores for me around the house count as earned income? If so does she need to file income tax forms? Without a W-2 form from an employer, I am lost.

A fidelity bond equal to at least 10% of plan assets is generally required. The minimum required bond is $1,000, the maximum required bond is $500,000 (ERISA Section 412).

1. I thought the maximum required bond had been increased to $1 million. Is this correct (or am I dreaming)? What is the site?

2. If a plan sponsor maintains 2 plans, each with assets above $5 million, can a single $500,000 bond that covers both plans meet the bonding requirement, or must the plan sponsor obtain two separate $500,000 bonds. (This assumes that the maximum required bond is still $500,000.) I suspect that two bonds must be obtained.

Thanks

Just wondering what practitioners are doing with respect to the following for a participant who retires, elects a lump sum but is restricted:

(1) Reg. 1.401(a)(4)-5 sets the life annuity equivalent of the accrued as the max that the restricted participant can receive in a year - are practitioners communicating a payment schedule with the above max as an annual cap or is the communication just that "the restricted participant can receive payments under any schedule as long as the max isn't exceeded in a year"; if a schedule is communicated, how is it determined ?

and

(2) The participant who elects a lump sum & is restricted might not be restricted a year later(e.g the RPA rate changes and/or assets perform well); how are practitioners determining the lump sum value a year later after the participant has received payments but of course not exceeding the max allowed as noted above ?

I rolled a 401K (approximately $25,000) into a traditional IRA a few years back. I then converted the traditional IRA into a Roth IRA in 1998 (spreading the taxes over four years). My financial advisor says that I cannot contribute to this "conversion Roth IRA" because it originated from a 401K. Is she correct?

Thanks for your help!