Can 412i plans have Paln Loan provisions?

what is the deadline to set up a new roth ira account for the 2000 tax year? My husband has been told that it must have been set up by December 31, 2000, in order to be counted in the 2000 tax year. I recently read an article that stated it must be set up by the taxpayer's normal tax filing deadline (minus extensions), or April 15,2001.

We are using Quantech in a "Daily Valuation" environment. We are struggling with the issue of forfeitures and how to best handle them given Quantechs capabilities (limitations) when it comes to handling forfeitures in a daily environment. We would like to know what other daily Quantech providers are doing. The Quantech suspense account doesn't seem to be the answer because of the issue of not crediting dividends and not including it in automated reconciliation. Some of the things we would like to know are:

Do you leave forfeitures in the terminated participants account intil they are to be used?

Do you leave them in the original investments?

Do you move the non-vested money to a conservative fund (IE money market)? Within the participant's account or a separate mr forfeiture account?

Do you set up a separate participant call Mr. Forfeiture and move the non-vested money. If so, when do you do the move?

Any input would be appreciated.

I'm trying to follow worksheet 2 from the 1999 Pub 571. I'm stuck and need help, if possible. A participant with compensation of 78,000 has a 415© limit of $19,500. He make elective deferals of $9800.00 and receives ER match of $4200.00. It seems to me he has not exceeded 402(g) and does not need to use the special "catch-up" election. He has also not exceeded MEA (computations done separately) and he has not exceeded 415©, total employer contributions are $14,000. If you follow the steps of worksheet 2, however, it looks like the "amount excludable from gross income" is only $13,000. What am I doing wrong?

I don't believe this participant has exceeded any of the limits.

Examples of when it's advantageous to make 3% nonelective safe harbor contribution to a plan other than the 401(k) plan?

Can the penalty exception under the Roth IRA regarding education be applied to education loans?

Man owns two Companies. Has an EE that works at both and is paid from both companies and defers from both pay check. They have a 401(k) document that that covers both companies under control group. They invest at Kemper. The question is, does each company have to have a separate account at kemper? Does this Participant need to keep each ER's amounts sepatrate? Or can they comingle the money for the participant since it is the same plan document? The plan name is XYZ INC 401(K)which covers both co's, even though the part works and recieves checks from both XYZ, INC and ABC, INC.

I have a client who would like to charge a vendor's lost participant search fee to his 401(k) plan. Thus, the plan asset will be used to pay for this fee. I've read the latest PWBA Advisiory Opinion 2001-01A and the DOL's response to Mr. Stoney; however, I'm still uncertain if this is wise for the plan administrator to do. What is your opinion?

What is the maximum a participant can defer from pay. I have a ER that insists 15% to $30K. I am thinking it's 15% to $10,500.00 for plan year end 12/31/2000.

There is no ER money in this plan.

In 98' i coverted my IRA to a Roth IRA . The sum was 11,800.

I paid taxes on the 11,800 over the next three years. I took a 10,000 dispursement in Deecmber of 2000. Do i have to pay taxes again on the 10,000 or do i just pay a 10% penaty for early withdrawl.

Has anyone an opinion on Converting a 412i into a traditional DB Plan-NP

DOL audit of ESOP determined ESOP loan note contained impermissible provisions. Loan note was fixed. DOL letter states that the Secretary of Labor is required to transmit to the IRS information indicating that a PT has occurred.

The 15% excise tax is substantial. Obviously they will be involving an ESOP attorney. What are suggestions - 1) file the 5330 and pay the tax now 2) wait for IRS notice 3) contact IRS to negotiate settlement. The note provided for a call of the entire balance immediately, but in operation, nothing like that happened, it was just a documentation issue of the loan note.

Also, it gets more interesting. This is an S corp, using distributions on allocated shares to service debt. The DOL interestingly enough, did not make any comment in regards to this issue.

Since the loan notes were already bad, is there anything to fix in regards to the use of distributions on allocated shares? Once the loan became nonexempt, don't these issues go out the door? Now that the loans are clean again, they should ensure they are not using impermissible distributions going forward. Do you think there is any correction to make relating to this issue? Isn't it interesting that the DOL, with responsibility for enforcement relating to PTs, made no issue relating to this matter, despite the IRS's interpretation in a PLR that this is a PT?

Any comments or insights appreciated.

Does anyone know where I can find a sample IRS data request checklist that a client of a qualified pension plan would receive from an IRS auditor in preparation for a plan audit?

Employer restricts stock ownership only to employees and the ESOP. Prior 1042 transaction was done with the ESOP. When participants are terminating, the employer is purchasing the shares that were in their account back from the ESOP, and using those shares to 1) give stock to management 2) recontribute to the plan.

Issues:

1) 1042 taint is gone when the stock leaves the plan, so recontributed stock is clean as far as 1042 is concerned

2) Because of the stock ownership restrictions, stock is never really distributed from the plan. The purchase of stock is actually a transaction between the ESOP and the employer, not the participant and the employer, so Put Option requirements have no application. Because this is a transaction between the ESOP and the employer (related parties), the stock must be valued as of the date of the purchase.

3) Also a consideration should be the fact that the ESOP trustees are making a fiduciary decision regarding whether it is in the participant's best interest to sell the stock back. I have a hard time justifying the fact that the employer is buying the stock and recontributing it to the plan to get rid of 1042. How can this be supported as a fiduciary decision when the purpose is clearly to benefit 25%+ shareholders?

Comments? Suggestions?

Also, does anyone have the exact cite that requires valuation as of the transaction date for #2 above?

Thanks.

1. What is the deadline for recharacterizing a 2000 ira conversion? I know this has been mentioned many times but I am getting conflicting information on the deadline.

2. Was I supposed to get a 1099R form for converting from a traditional to Roth?

Thanks!

In a safe harbor plan with a 3% employer contribution as the safe harbor contribution, if the employer wants to add an additional integrated profit sharing contribution does the 3% safe harbor contribution count towards the base contribution? That is, if the employer wants to receive a 5.7% excess contribution, does she have to make an additional 5.7% base contribution to the lower paid employees or will the 3% safe harbor contribution count toward the base?

Can someone please help me with this?

http://benefitslink.com/boards/index.php?showtopic=9635

Has anyone gone through the process of applying for a prohibited transaction exemption? Can you give me a ballpark estimate of what a plan sponsor could reasonably expect to pay to go through that process (attorney fees, etc.), and approximately how long it takes until the exemption is either granted or denied?

An employer has MP and PS plans. An employee has a loan in the MP plan that is being deemed. He has no loan in the PS plan and wants to take the max. Does the deemed loan in the MP plan affect the PS loan max calculation?

Can a husband and wife who file jointly, who have an AGI in excess of $160,000, neither of whom are active participants in a retirement plan, contribute to a Roth IRA? If not a Roth, could they contribute to a traditional but deductible IRA? Thanks