I'm new at this. Can I have more than one (1) Roth IRA???

Thanks

I have received FORM 1065 (Substitute Schedule K-1), from Partner's Share of Income, Credits, Deductions, etc, as a result of ROE from ROTH IRA investment. Since Taxes are not required; do I just ignore the form?

Lets say you have a client that is a golf course, which employs about 200 part-time staff throughout each year. They have a 3-month eligibility requirement, so most of these employees are eligible. Very few participate. The course considers them still employed on 12-31, since most will be coming back to work in the spring. Question is - what is my number of participants at the end of the year? You could make an argument that I have over 100, since there are that many that are eligible. In the whole plan, there are about 30 who make contributions. I'm looking for a way to keep the number under 100, to avoid an audit. Any thoughts?

Has anyone been lucky enough to have their COBRA coverage extended beyond the statutory period? Or has any corporation out there been generous enough to extend coverage beyond the statutory period? COBRA does not prohibit plans from offering continuation health coverage that goes beyond the COBRA periods but I'm wondering how likely a company would continue coverage and under what circumstances. Thank you.

A major corporation has been very lax in sending out their COBRA notification letters. This is causing insurance elibigility problems. What is the procedure for having fines levied upon this corporation by the federal government. It seems this is the only way they will take notice.

I am looking for recomendations regarding software to use to value small(<100 participant) defined benefit plans. Could you please give me contact information for the software provider?

I am also curious about what it costs.

Thanks

An employee is a participant in a DB plan (5% owner). The participant accepted a job with a new employer (not a 5% owner) where he will participate in a DC plan. The DB plan will be terminated. Participant turns 70 1/2 sometime this year. Can we avoid the required minimum distribution under 1.401(a)-9 by a rollover from the DB plan to the DC plan? I think the answer is no but as a result of a termination of the employer maintaining the DB plan, the employee will only be a 5% owner for a month or two of this year. Is there any rulings or regulations on a subsequent change of status from a 5% owner to a non 5% owner that might permit avoidance of the MRD rules?

Can a participant name a trust as his beneficiary? If not, why? If so, why isn't it done more frequently? thank you.

Can an employer have a Simple IRA for 2001, decide to stop the Simple IRA during the year and then adopt a 401(k) qualified plan during 2001?

We have a safe habor plan using the 3% nonelective contribution. The plan also has a subject to vesting match of 20% all the way up to 100% of employee deferrals. I am fairly ceratin that this plan meets the ADP safe harbor, but fails the ACP safe harbor because matching contributions can occur on deferrals in excess of 6% of comp.

I have been advised that this plan meets both the ADP and ACP safe harbors. The person advising claims the match cap only applies when using the match to satisfy safe harbor.

Am I correct? If I am correct to I test on the entire match or just the portion on deferrals in excess of 6%.

Can anyone expand on the rules for paying plan expenses (specifically, plan administration-related expenses) from a plan that utilizes individual accounts for all participants?

My client wants to begin charging the plan (the affected participant's account) for the fees associated with processing distributions, withdrawals & loans. (The plan document does have "broad" language that allows the trustee to pay appropriate expenses from the plan or by the Employer, so there's not a plan document issue.)

I am curious about various other threads that have mentioned a DOL Opinion Letter that apparently references a distinction between plans with pooled assets versus plans with individual participant accounts (at the trust level). Is there an issue with plans with individual accounts?

Any help would be greatly appreciated!

While completing Schedule R of a Form 5500, we have discovered the brokerage firm is putting the distribution into an IRA and then paying lump sums from there. They are then generating a 1099R for the IRA. The client has not been preparing 1099R from the trust. Quite possibly, if the money stays in the IRA, no 1099R is generated. (This is the second instance we have uncovered this week with at least 2 brokerage firms.) We think there are 2 issues here 1)the EIN on Schedule R should be the brokerage house, which they are reluctant to provide; 2)nonexistant 1099Rs for the IRAs that do not leave the brokerage house. Anyone else with similar experience? What are consequences to plan? Please site regs. Thanks

Does anyone know if you can test by division in Quantech and if so, how??? I am referring specifically to the ADP/ACP Tests.

Plan Design:

Money Purchase Plan and 401(k) Profit Sharing Plan

Money Purchase Plan Formula: 25% to HCEs, 3% to NHCEs, money purchase allocation to each participant will be reduced to meet combined plan 415 limit

Determination Letter for money purchase plan says that plan passes nondiscrimination testing on the basis of the 401(a)(4) general test.

Money Purchase plan document is silent on what to do if 401(a)(4) general test fails.

Letter from plan sponsor indicates that an additional profit sharing contribution has been allocated in the past when the general test failed.

Profit Sharing Allocation Formula: uniform % of recognized earnings.

Is there any compliance problem caused by reducing the money purchase allocation to each individual due to the combined 401(k) and money purchase 415 limit?

Is there a default of how to get a 401(a)(4) test to pass when the test initially fails, or does the document or an addendum have to contain language specifying how to correct a failing general test? Is this language unnecessary as long as the plan sponsor continues its practice of making a profit sharing contribution to get the general test to pass?

Do reallocated forfeitures in the profit sharing plan affect the 401(a)(4) general test?

I am preparing to give a presentation to pension professionals on the topic of "ethics." I am now trying to explore the direction of my talk. If anyone has come across any articles, books, etc. on the topic of "ethics" please advise.

I've always shown the contributions in Form 5500 as the contributions "for the plan year." In other words, I take the contributions actually made during the year, add the receivable as of the end of the year, and subtract the receivable as of the beginning of the year. Pretty standard stuff. (And of course, the contribution agrees with the tax deduction taken.)

Recently, I've seen (and taken over) a number of plans where the contributions shown on the 5500 were the contributions actually made "during the year" --- and excluding receivables.

1. If I transition to the "for the plan year" basis, I will wind up including an extra contribution (the end-of-year receivable) in my first 5500. So, the contribution shown in the 5500 will not equal the deduction. (Of course, in future years, everything will be fairly normal.) Any problems with this approach.

2. Or, can I stay on the "during the year" basis? And, if the IRS questions the deduction vs. the 5500 contribution, explain that the difference is due to the receivables. (Assume that this is not a DB plan.)

This has come up several times on 401(k) plans where the employee contributions and assets were taken from the mutual fund statements (there were no company matches), and the receivable was ignored. The receivable is simply the employee's deferral in the last week of December that wasn't sent to the mutual fund until early January. Shouldn't the ADP test be done based on contributions deferred for the year (and not contributions actually made during the year)?

Shouldn't the 5500 include those late December deferrals?

I need to project total benefit cost per employee. I know we need to include all the standard benefits, health, life, ltd, etc. but wasn't sure what the norm is as far as FICA, Unemployment and Workers comp being included. Any advice would be appreciated.

Thanks, Adele

How can a person defer on tip wages if their base wages are lower than the deferral amount? (the document definition of compensation is W-2 wages).

Regarding highly compensated employees - two situations. First, in the first plan year of a 401(k) plan established in a newly-formed company, and assuming there are no 5% owners, is it correct that there would be no HCE's for testing purposes in the initial year?

Changing the facts slightly, assume the newly formed company is actually a newly formed spun-off company which is not in common control with the former parent corp. Again, assuming no 5% owners, it is correct that there would be no HCE's during the initial testing year?

Does anyone know of a recordkeeping system that can handle administration of a small (under 500 part.) ESOP, including cost basis?