While restating the document can a Plan change its normal retirement age from say age 55 to age 65?

I don't see any problem the other way - from age 65 to age 55 because your benefits are accelerating.

I know early retirement is a protected benefit. Does the same rule apply to normal retirement age?

Thank you.

Please comment if you have dealt with allocation or reversion of demutualization proceeds received from a group annuity contract that is used to pay retirees under a DB plan that terminated years ago

Are employers required to give special notice to employees being laid off where a 401k loan will be due upon layoff, and/or is the lender required to give notice to the borrower before exercising its option to take an automatic distribution from the 401k? This particular case is for when the loan documents make no mention other than the loan becoming due upon termination.

Partnership sponsors Safe Harbor 401(k)P/S Plan. Partners originally had 52/48% Partnership Equity split and allocated earnings/expenses accordingly (including Plan contributions).

One of the partners has now sold/transferred their equity interest to the other and will now receive only a guaranteed Partnership draw based the client hours he bills. He is still a Partner, and will not receive a w-2 but continue with K-1, but will receive no share of Partnership equity or expenses.

The partnership still has to contribute for the non-equity partner but it appears that the 100% equity partner will now bear the entire Qualified Plan contribution expense (even for the non-equity partner).

Where does the equity partner take a deduction for the non-equity partners share of the contributions? Can the Partnership agreement state that the non-equity partner still is allocated that expense (has to contribute his own QRP allocation but the equity partner pays all other "employees" contributions) even though he has 0% equity interest in partnership? If that is possible, does the non-equity partner then take the deduction on his 1040?

Any help would be appreciated.

We are looking for feedback from employers who have used direct reimbursement dental plans (good experiences and bad). Everything we get is from ADA or someone selling the product or selling the administration. We are considering such a plan for our employee through our dental school and are looking for information on employee acceptance.

How would one take care of an excess Roth IRA recharacterization? I switched my Roth and Traditional IRAs from Janus to another brokerage in November 2000. In October 2000, I converted 100 shares of a mutual fund from a Traditional to Roth IRA. Between then and December 31, I changed brokers and the value of the shares decreased by ~35%. Instead of specifying a share amount, I specified the amount of the October conversion, so the new broker ended up converting 139 shares, due to the drop in share value.

I already held shares in the fund due to a 12/98 conversion from Traditional to Roth IRA, so I had already begun paying taxes on the 39 shares.

Because the new broker does not know my past history with Janus, they refuse to put those 39 shares back in the Roth. My AGI for 2001 will be over $100k, so I don't think I can convert from Traditional back to Roth. My AGI for 2000 is under $100k, so how long would I have to make a conversion if I file a tax extension? What other alternatives are there?

We have a profit sharing plan for a sole proprietership. It has always been my understanding that to begin the calculation I start with Net C and then subtract 1/2 SE tax. I have come across a position stating that you should actually take (Net C *.9235) and then subtract 1/2 SE tax. Is this alternative view correct?

In determining compensation for purporses of calculating the 15% maximum deduction limit do you subtract elective deferrals before the 170,000 limit or after. For example Employee A earns $200,000, defers $10,000, for 15% purposes is his comp. factored in at $170,000 or $160,000? I am fairly confident that you apply the limit after subtracting the deferrals, but I need some confirmation (i.e. in my example 200,000-10,000>170,000, thus comp. 170,000).

Are there any significant disadvantages to taking a pre-retirement distribution from your PSP and rolling it over to an IRA? Participant is older than 59 1/2, so no 72(t) penalty issue. Participant will roll out the contribution he receives each year in the PSP going forward to the IRA.

The plan formula reads "1.2% of your average earnings up to your covered compensation plus 1.6% of your average earnings above your covered compensation times your years of credited service." If the benefit is to be frozen as of June 30,2001, what covered compensation amount should be used? Will the amount be the same for every Participant or will it vary depending upon when each Participant reaches age 65? Also, is a frozen accrued benefit calculated as though the Participants terminated their employment, or do other rules apply to this situation?

I wonder what software others use to keep track of their DRIP accts. I set up some of those dividend re-investment accts where you can buy fractions of a share of stock. It went ok until i started transferring them to a broker so i can sell and buy more anytime i want to. The fraction of a share is sold and i received 1099-B statement. I have no idea how to find out the basis, and since it is small amount anyway, i am going to report the entire amount as dividend.

I just wonder how other people do it.

Please help, i am completely lost on this one even though it

is simple. I converted my traditional IRA (actually a direct roll-over acct) in June, 2000 to a Roth IRA, i then

recharacterized everything back to the traditional IRA in Dec, 2000. I then converted it back to Roth IRA in Feb, 2001

The stock fluctuated so much, the amount between conversion

is different even though the whole acct is converted.

I received 2 1099-R forms from the broker, one for traditional IRA acct marked early distribution exception applies, and the other for the ROTH

marked recharacterized IRA contribution.

1. I guess I don't have to worry about the conversion back

to roth IRA part done in 2001 for now, right?

2. I am having difficulty in filling out the form 8606, can someone please let me know how to do it? I guess I need to fill out part 2 and 3, even so, i can't figure out which numbers are necessary. For instance, it asked for basis,

i have no idea since this is a direct roll-over acct from

a mutual funds.

3. What about line 15a and 15b on form 1040??

Any pointers will be greatly appreciated!

Thank you in advance!

a very basic question... what is a traditional IRA and what is a Roth IRA? thanks for the help!

Is there a federal guideline re: deadlines for reimbursements and notification of such or is it an arbitrary decision made by plan administrator?

Can a 412i plan intergrate social security-and how do you do the caculations? I there a program that one can purchase that will do the pro-formas?

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?