In 2000 I "rolled-over" a 401(k) into a "self-directed" IRA. In the same year I did a partial conversion of the IRA into a ROTH.

Well, as we all know , the market got ugly !

My ROTH was worth MUCH less than at the time of the conversion so I "recharacterized" the ROTH back into the Traditonal IRA in November 2000.

I've received two 1099-R forms , one showing the conversion( and a hefty taxable amount ) and the second showing the "recharacterization" without a taxable amount.

My question is( I'm trying to use TurboTax) : How do I file BOTH of these forms for tax purposes ? I've tried filing the 1099-R with the taxable amount and it got depressing! I can't find a method to file while indicating to the IRS that the transaction is not valid.

Thanks!

If a plan is set up to cover only members of the board of directors and directors are NOT HCEs under 414(q) (plan tests out okay under 410(B)) would there be any reason why this classification might be considered unreasonable?

Client would like to set up a cafeteria plan that benefits only the members of the Board of Directors. Directors are NOT HCEs (under 414(q) or under 125 rules), and 410(B) tests out okay. Any comments on whether this would be okay? Reasonable classification or not (and why?). Thanks.

My small company has two employees who each own 1/2 of the company. We have an MPPP in place, using a standard prototype plan, from Vanguard in our case. We would like to freeze the plan, terminate the plan or otherwise reduce the required contribution to 0%. My understanding is that this is not a problem for FY 2001 (for us same as calendar 2001) if it is done prior to 3/15/2001. If possible, we would like to also do this retroactively for 2000. We have not yet filed our 2000 tax return, and have not yet made any contributions for 2000.

From looking at other threads on this site, it appears that maybe the only penalty associated with this kind of "retroactive" termination is that it triggers 100% vesting. In our case, that's not a problem since we have both been 100% vested since the start of the plan.

Am I right that this would be the only "penalty" associated with what would essentially be a retroactive freeze/termination?

(In retrospect, setting things up initially as a combo MP and Profit-Sharing plan, might have been better as it would have given us greater contribution flexibility.)

If you want to apply the new rules when calculating minimum distributions, do you need to amend the plan this year, or can you take care of it when you update for GUST? The regs say you must adopt a model amendment but i do not see such an amendment in the regs.

In the near future I will have the employees at our company start making weekly/bi-weekly contributions for the Insurance premiums. The company has always picked up all of the premium cost for single & family coverage in the past. Where do I start in determining how much they should contribute? They have $10 OV copays & $150 annual deductibles. Also, how do I present this negative information?

My spouse and I file married filing seperate returns due to the state of Ohio's high tax. We both have invested 2,0000.00 to a Roth Ira for yrs 1998,99,00(we thought we would be able to file jointly). I understand that the 2,000.00 is considered excess contributions since our AGI for both is over 10,000. But I don't understand why we continue to be taxed for the previous yrs excess contributions instead of just the yr you are filing. Any insight would be helpful. Thank You.

I have 401 (k) plan that had a change in plan year in 1999. (It was a 3/31 year end and I did 3/31/99 then I did a short year from 4/1/99 through 12/31/99). The question is do I need now to obtain full compensation for the CALENDAR year 1999 to see who made more than $80000 for my 12/31/00 testing? I was basing my test on people who made more than $80000 during the short period. But I don't think it's right!

Thanks for any help.

Where can I find out about employee owned company's that the employee doesn't have to match what is vested?

Thank you all for your replies to my previous post. I am trying desparately to get a "legitimate" value on my ex-husband's Defined Benefit Retirement Plan which he has with the company where he has worked for 32 years. Yes, Paul, there are those actuaries who will give a value based on whatever one particular spouse wants. Unfortunately though, those are the difficult ones to substantiate in court for a divorce settlement. In other words, it is costly to hire so-called "expert witnesses" to back up contrived figures.

I want a legitimate valuation. I have had a difficult time obtaining access to Plan information from the company, however, finally armed with the proper Federal ERISA codes, I have now managed to open the door to obtaining the current figures I need.

I am vague on some definitions. As I mentioned, the Company is now more than willing to furnish me with my requested information. Can I get the Company to give me an acturial valuation for the Defined Benefit Plan? They have, so far, given me the current value of what his monthly retirement benefit would be if he retired today. (he is due to retire in a few months). I am not sure of the proper terminology, however I need the total present value of the plan in order to determine a fair split for property settlement. I know the plan is worth well over $100,000.00.

The company said they would "give me a pension workup so I would know what his pension is worth. They gave me the monthly amount of the benefit payment. Again, I need the total cash value including medical benefits. I am in a community property state, Texas.

Could someone please give me the correct wording as to what to ask for? And, if I need an outside actuary to do the valuation, what figures do I need to obtain to present to a qualified actuary if I ever find one?

The new proposed minimum distribution rules continue the old rule that separate accounts can be established within an IRA, and the required distributions determined separately for each separate account. There are, however, some language changes delaing mostly with timing.

For example, for death payments prior to the required beginning date, the date for determining if separate accounts exist is the last day of the year following the year of death.

My understanding of the prior rules was that only the IRA owner could establish the separate accounts. Ie, the beneficiaries themselves could not do so after the participant's death.

I have seen some commentaries suggesting that now the beneficiaries can establish the separate accounts during the one year + post death period. I doubt this is correct. Has anyone seen any clarifying discussion of this change?

thanks-

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Employee (attorney) has been working out of her house, and either keeping her infant at home or having her mother-in-law watch the baby at no cost. The employer decides the employee must now work out of the office 120 miles away. The employee must move and begin day care for the infant. Is this a change of status that would allow her to elect dependent care mid-year?

No change in number of hours or employment status, just the location.

(1) Is the employee's life the measuring life for the straight life annuity referred to in 1.401(a)(4)-5(B) for payments to a beneficiary or alternate payee of a restricted employee? 1.401(a)(4)-12 states: "Straight life annuity means an annuity payable in equal installments for the life of the employee that terminates upon the employee's death."

(2) If the employee's life is the measuring life, do 401(a)(11) and 417 override 411(d)(2), and what is the employee's life expectancy after the employee's death?

(3) If the beneficiary's or alternate payee's life is the measuring life, does 401(a)(9) override 411(d)(2)?

I have converted my Traditional IRA to a Roth IRA for 2000 based on my AGI being less than $100,000. If the IRS were to determine (say through an audit)in the future that my income was actually over 100,000 for the year of conversion, would there be any financial penalty for the improper conversion. Am I right in presuming I would have to recharacterize the Roth back to a traditional IRA, and would be refunded the taxes that I mistakenly paid. But would there be any penalty?

What are the contribution limits for SIMPLE IRA's for 2001, and where can I find them authoritative source for the limits?

A corporation sets up a cafeteria plan so health insurance premiums can be paid pretax. To avoid violating the 25% key employee concentration test, only 1/2 of the premiums for key employees are paid through the plan. 100% of premiums for non-keys are paid through the plan. Is there a problem with this arrangement? Could the contributions and benefits test be a problem even if the concentration test is ok?

A question about excluding participants from ACP Test.

Participant must have 1000 hours (no last day requirement) to receive a matching contribution. If I have participants (terminated or not) with less than 500 hours, can I exclude them from the ACP Test?

Are there any durational requirements for the loan in a leveraged ESOP? For example, can the loan be a one year loan?

Are a fertility monitor and thermometer that are not prescribed, but recommended by a doctor, proper expenses to reimburse under Sec. 213?

I am trying to find out what is the impact of forefeitures from a money-purchase plan. The plan has a cliff vesting schedule 100% after three years. The employee leaves after two years and all his money is unvested. The forefeited money would revert to remaining participants in the plan. I am not sure how it is distributed among the remaining participants. If money purchase plan was set at 25% of the compensation, would the corporation be able to contributed 25% in addition to the forefeitures?