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?

If a church 403(B) plan chooses to make a non-elective, non-matching contribution to an account as an incentive for retirement savings for pastors, is that deposit subject to the maximum contribution limits of 403(B), 402(g) and 415©? This could be either a one-time initial contribution for new pastors, or an annual deposit for all eligible pastors in the denomination.

Many pastors find themselves employed by congregations that may not pay any salary, but might provide a housing allowance or expense reimbursements which are not part of includible compensation. It seems logical that if there is no includible compensation, there can be no exclusion allowance, and thus, no contribution to the plan. I would appreciate any comments.

Where do I go to get a Roth IRA? A bank?

I am very new at this - sorry for my ignorance. I would like to get one that doesnt cost me anything? Basically, when I get a little saved, I want to get it invested easily.

I have atraditional IRA at a bank which came from a 401K rollover a few years ago - I think it is a CD type? I have to re-do it every few years.

Thank you so much for nay assistance!

What happens to Roth IRAs after exceeding MAGI limits? For example, a person does not currently exceed the limit to open or contribute to a Roth so they contribute the max $2000 for three years. Then, in the fourth year, they get a big raise which pushes them over the MAGI limit and cannot contribute anymore. What happens to the $6000 (plus gains or minus losses)? Can it sit in the Roth until the person wants to take a distribution or must it be rolled over to a traditional IRA?

It is my impression a VEBA cannot offer a choice between cash in exchange for unused vacation and retiree medical coverage without constructive receipt. Any comments?

Can a top heavy plan exclude bonuses from compensation?

Sponsor of a 403(B) acquires employees of another entity that maintains its own 401(k). These employees have outstanding loans in the 401(k). It is my understanding that when these employees leave the 401(k) entity their loans become taxable as deemed distributions. The 403(B) entity wants to loan these people the money to repay these loans to prevent this taxation. Does anyone see any ERISA or other Plan related problems here?

What are people's thoughts on a SEP that was established after 1996, where the SEP document itself provides the employer makes the contribution, as required by law, but there is a side agreement (perhaps one-sided or forced) where the employee agrees to forego income in exchange for the employer making a SEP contribution? Do others think this would run afoul of the SARSEP being illegal unless it existed already when the law changed?

I have a basic question regarding voting rights for non-publicly traded stock. Must voting rights be passed through for any of the listed transactions if voting rights do not have to be passed through under state law or are voting rights passed through only if non-ESOP shareholders would be able to vote on the listed transactions.

Follow-up question - an offer is being made to purchase 20% of a privately traded company's stock - ESOP owns a portion of the company so buyer will buy 20% of ESOPs stock. There are allocated and unallocated shares in the ESOP. Trustee will determine whether to sell unallocated shares. Who makes the decision to sell the allocated shares.

Thanks

Can a plan sponsor make a loan to a participant that the participant then uses to pay off a loan from the plan, or is this a prohibited transaction?

Let's say I work for a big company. I have a nice 401k plan with a bunch of money in it. Now I want to quit my job and start my own business. I don't want to touch the 401k money until retirement age of course. In fact I would want to keep contributing now that I have my own business. My question is how do I handle this? Can I set up a 401k or IRA for my company and roll it over or what? How would I do something like that? Thanks.

A client wishes us to prepare late 5500s for 1996, 1997, 1998, and 1999. There are likely to be qualification issues that the client intends to address.

A IRS notice for the 1998 form has been received. It does not assess a penalty, but indicates that it is the Final Notice before an audit or other sanction.

(1) Is DFVC still available for 1998, since this is an IRS, not DOL notice?

(2) Is DFVC available for years before 1998? The messages on this board seem to indicate "Yes," but the FAQ on the DOL website indicates for 1998 and subsequent years.

(3)Is there a way to indicate we will use DFVC for 1999 (and 1996 & 1997 if available)? We would like to "head-off" any future nonfiling notices, or at least make it known that we intend to file.

(4) The plan most likely will have qualification issues for one or more of the years in question. We do not know the extent of the issues (or if they exist for that matter). Is there a way to indicate to the IRS that we are in the process of reviewing the plan and intend to apply to one of the remedial programs? Here, we'd like NOT to get audited and lose the availability of SVP, VCR and WI CAP.

Any guidance is appreciated.

Thanks.

A participant in a 401(k) plan heard that he can roll money from his plan here in the USA to his plan in Israel. He is currently living and employed here in the USA, but previously was employed in Israel and still has money in the plan. Is this a tax-free rollover??

If an employee is the grandparent and legal guardian of a minor child, does the employee's health plan have to provide medical coverage for the child?

In some states employers can elect not to provide workers compensation insurance. As a result, sometimes employers do not offer workers comp but instead offer workers compensation replacement plans. They provide a wage replacement benefit and health benefits for on-the-job injuries. My question is does COBRA and HIPAA apply? I know COBRA doesn't apply to disability but I think the health benefits could be separated. It looks like a group health plan and I haven't located any authority that says otherwise. Any input would be appreciated. Thanks!

59 1/2 Doc with a MPPP and PSP wants to rollover to an IRA and take distributions as he needs them. He doesn't want to start annuity payments or take a lump-sum ($2.5 mil)because his is still working (not for same org. and just part-time). Can he rollover just the amounts that he wants distributed? His concern about a total rollover is that the IRA is not protected from creditors. Even though he currently doesn't have a malpractice suit against him, you never know. Can he do this? Any pitfalls or limitations?