Employer was in the midst of doing an interim valuation of plan assets of a PSP and a MPPP. Participant requested distribution of his account balance 2/28/01. Broker moved the funds based on the anniversary date (9/30/00) balance of participant's account. Interim valuation recently completed and participant presumably would have received less. Does plan have a responsibility to look to participant for the difference?

I've seen the 12/31 deadline for Roth conversions quoted extensively, but am stuck on a basic question: where in the code/regs does it come from? The only mention I've found of a Dec 31 deadline concerned the four-year plan for recognizing income from 1998 conversions in 408Aa3Aiii. Beyond that, the code/regs & Pub 590 appear to leave the question somewhat open to interpretation.

Pub 590 doesn't actually address it explicitly. It references the tax return filing date as the deadline for contributions but is unclear whether it's referring to standard contribs only or also qualified rollover contribs.

And Code sections 408A©(7) and 219(f)(3) appear to allow you to deem a trad-to-roth transfer made before your tax return filing deadline as having been made 12/31 of the prior year. Which would seem to allow conversions after 12/31. That of course hinges on "contributions" in 408ac7 being interpreted to include "qualified rollover contributions", but I can't see anything to the contrary in the code.

The Roth regs (eg 1.408A-4) say we need to include the conversion amount as income "for the taxable year in which the amount is distributed or transferred from the traditional IRA". But if the above code sections apply, wouldn't a pre-filing transfer be deemed to have been done on 12/31, hence qualify?

But before I hit the seminar circuit with a new loophole, figured I'd bounce it off some pros... ;-)

I am self-employed, make about $6000 a year. Not knowing much about taxes, I thought I don't make enough to file for taxes and I have never filed since I came here as a legal resident in 95.

I opened a Roth IRA on 4/15/2000 and contributed $2000 for tax year 99 and $2000 for tax year 2000. A while back, I found out on the Roth IRA web site that Roth contribution has to be "earned income". My questions are as following:

1)Is my Roth IRA account not valid due to the fact that I did not file for taxes in tax year 99, 2000 and all 3 years after I was in the u.s.?

2)How can I fix this? Which form to use when I back file? Do I need pay taxes on my scholarship when I was in college?I like to solve it before IRS tells me that my roth accout is illegitimate late on.

3)Do I make enough to put $2000 into my Roth?

Thanks for any helpful input.

Can a company supplement executives only for expenses not covered under a medical plan through the company's general assets but not for other employees?

Is it discriminatory to have different waiting periods and benefits for hourly employees and salaried employees. Salaried employees have a 30 day waiting period and hourly employees have a 90 day waiting period. Premiums are pre-taxed. The medical plan is the same for both however, salaried employees have dental and vision coverage under a self-funded plan that the company pays for. Hourly employees have the option of electing dental coverage under a fully insured plan that the employee pays for. When are you required to perform discrimination testing (and how) under a fringe benefit plan/welfare plan? Not sure of the difference. Obviously I need help!

Looking for the 1970 GA Mortality table. I went to the SOA web site and loooked at their index of tables. I however, did not see a 1970 GA table. Any thoughts on where I may find one?

This is a legal question more than a 401(k) question, but our legal rep is out of town and the client needs an answer. Scenario: Son fills out beneficiary designation form, designating beneficiary as 50% Mom and 50% Dad. Dad is witness to Son's signature on beneficiary designation form. Mom & Dad then divorce. Son dies. Mom is executor of Son's estate. Mom thinks because Dad witnessed son's signature, and Dad is a beneficiary, that the entire beneficiary designation form is invalid. Plan document is of course silent on this strange combination of events - it just says that if no beneficiary designation exists, beneficiary is spouse, and if no spouse, beneficiary is estate. Any lawyers out there know if beneficiary also serving as signature witness somehow invalidates the designation?

An employer formally adopted a SARSEP before 12/31/1996; however, no employee contributions were ever funded. Now, there are employees that would like to contribute to the SARSEP. Can the employees do so even though SARSEPs were repealed by SBJPA'96?

Isn't there an exemption to providing a Summary Plan Description if the only participant of the Plan is the owner of the company that sponsors the Plan? I could swear I knew this once; but, have not been servicing plans for quite a while.

Does the IRS impose any restrictions on the type of account into which an electronic funds transfer for FSA reimbursement may be deposited? For example, can EFT be used to deposit the reimbursement directly into a money market account?

Can a Plan make a loan to a participant to help his/her child purchase a home? I guess similiar to tuition clause in many documents

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.