I converted my traditional IRA to a Roth IRA last October 2000. Soon after, I discovered that the income limitation for a conversion is different from the income limitation for contributions. Because I was afraid of exceeding the income limitation, I recharacterized back to a traditional IRA. However, the taxes had already been taken out for it! Now I'm trying to prepare taxes for 2000, and don't know what to do... I am going to be able to convert to the Roth IRA in 2001 with no problems, but do I have to pay taxes again? Will I be penalized for this? Please help!

DOL Reg. 2520.104-23 states that a top hat (my choice of words, not the DOL) filing must be made within 120 days after the plan becomes subject to Part 1 of ERISA. A plan becomes subject to if it is established or maintained. So, for purposes of counting the 120 days do you use the date of adoption or the effective date of the plan?

I'm looking for information about employee sabbatical programs: who offers them and the policies around them.

I have been asked to head a team on work alternatives, specifically we would like to have the option to work at home as our activities are perfect for this. Do any of you have information that you can share with me on this topic. Thanks!

A company sponsors a 401(k) Profit Sharing and a Defined Benefit Plan.

Client would like to satisfy top heavy requirements by showing that the sum of the hypothetical accrual attributable to profit sharing contributions and the defined benefit accrual is at least equal to the defined benefit minimum.

1.416 Q & A M-12 outlines 4 methods to satisfy the minimum benefit requirements if participation is in both a DB and DC plan:

1. Provide DB Minimum

2. Floor offset approach (Rev. Rul. 76-259)

3. Comparability analysis (Rev. Rul. 81-202)

4. 5% DC contribution

Is the comparability analysis under Rev. Rul. 81-202 still a valid method to satisfy the minimum benefit requirements? (I ask because I have had difficulty finding the cite on a internet research network).

Can the Floor offset approach be used if the actual DB formula does not use a floor offset?

In a merger situation, the plan being merged into our clients plan used elapsed time for purposes of vesting calcuations. Our client uses the 1,000 hour rule. How do we calculate vesting service on the employees coming into our plan? Do we calculate their elapsed time credit as of the merger date and then begin to use the 1,000 hour rule? or do we completely recalc using the 1,000 hour rule? The old plan had 5 year cliff and our plan has 3-7 year graded. We do have some participants who have elected to stay on the 5 year cliff schedule.

Under the new gateway rules is it true that you cannot have a last day of year, 1000 hour rule in order to get a contribution or you will not pass the gateway.

We have an employer that maintains a mpp and a psp, both plans are being terminated as of May 15, 2000. The last contributions made to the mpp were for the PYE 12/31/99. Is there a required minimum contribution due for the 2000 plan year up until the termination date? The mpp has issued the required participant notices and all benefits were to be frozen as of 5/15/00. Upon distribution of assets do gains/losses get allocated to the current date of distribution? If not, since the plan has incurred losses since 5/15 does the employer have to make a contribution for the difference? The plan only has 6 participants.

What steps do I need to take to terminate an ESOP, and what statues and regulations do I need to comply with for the termination? I've been going in circles trying to find out specifics. Thanks!

For purposes of ADP testing, is 2000 truly a transition year with respect to the prior year and current year testing method? If we choose current year for 2000, are we locked in, so to speak? Or can we change back to prior year in 2001? I have looked at Notice 97-2, Notice 98-1, Rev Proc 99-23 and Rev Proc 2000-26 and I might as well be looking at hieroglyphics. Please help!

What steps do I need to take to terminate an ESOP, and what statues and regulations do I need to comply with for the termination? I've been going in circles trying to find out specifics. Thanks!

Quick question: I am currently in the financial services industry, but I'm looking at a position as a retirement services consultant with a bank. Within the job profile, it mentioned a certification called CRSP. I have been trying to find some information on that certification, but I don't have any idea what it means. Can anyone help?

I need to draft an indemnification agreement for a client to sign to hold harmless the trustee for the client's plan. This agreement is protect the trustee since the client is refusing to take proper correction methods as advised by the trustee. Does anyone know where to get a form of such an agreement?

Thanks.

I'd like to revisit something that was discussed briefly here about a year ago, the 5% "safety valve" rule in reg. sec. 1.401(a)(4)-3©(3). Specifically,Iwould like anyone's thoughts on the second part of the rule, which refers to a determination by the Commissioner that the plan does not discriminate. What is the nature of this determination? Must there be aformal determination letter requested? fso, how is the request made? On what form? Or is it an ad hoc determination made by an agent in the course of an audit?

I am researching the market for providing financial education services (versus financial counseling or financial advisory services)--i.e., whether there is an interest by employers, associations, nonprofits, etc., to provide these types of services to their employees, members, or the public at reduced or no cost, with the employer, association or nonprofit paying the difference between the education service providers' fees and the amount paid by the recipient. Alternatively, if the public would pay for these services, seeing it as an alternative to the debt counseling and financial planning services that serve a different need.

Is there an interest in this type of service (we probably all agree there is a need!)? If so, any suggestions on charges, how to reach the payer or recipient groups for providing such services, etc.? Any thoughts on a dedicated part-time arrangement with a church, employer, etc., would be helpful as well. Any thoughts???

Thank you!

My 63 year old mother would like to give $1000 to my 2 year old daughter for the express purpose of my daughter's retirement. It is my understanding that a Roth IRA cannot be opened for an individual until after age 14. Hence, would the most beneficial way to give this money to my daughter for this purpose be opening a Roth IRA in my mother's name (she does not have an IRA of any kind of her own) and making my daughter the beneficiary of this account? I know after my mother's death, my daughter would have to take minimum distributions, but they would be tiny if anything by then because of my daughter's life expectancy and at that point, wouldn't it be possible to switch the money over to my daughter's own Roth IRA when she turns 14 if she is not already 14 when my mother passes away? I'm just trying to find the best way to keep this money, tax-free, for my daughter's retirement while earning interest, dividends, etc. over the next 63+ years. Thanks! (nicolemmh@aol.com)

What are the rules about using assets from one 401(a)plan to pay the plan expenses of another 401(a)plan? I have recently noticed two incidences of public employee retirement systems using assets from their db plan for full-time employees to subsidize the costs of development and administration of a new dc and cash balance plan for part-time, seasonal, and temporary employees.

Can a Roth IRA be rolled over into a PS/401k plan? If so, can it still be rolled over even if the Roth was a conversion from a contributory IRA, i.e., not a conduit IRA?

Employer provides several group health benefits, including group medical and a cafeteria plan, and files separate 5500 forms for each plan. Employer wants to consolidate plans under a "wrap document" so as to file a single Form 5500 with applicable schedules (e.g. Sched. F for cafeteria plan).

Provided employer adopts wrap document before the end of the applicable plan year(s), can it file a single 5500 for that year? Or does the existence of separate plans at any time during the applicable plan year require that the employer file separate Form 5500s for each separate benefit?

Would a tax-qualified retirement plan covering only partners be required to comply with ERISA; i.e. a 401(k)/PSP limited to partners of a p'ship?