This is the first time I have been at a company offering PTO. They still track sick time separately. They believe there is a reason why they need to, but no one can articulate why. Any ideas?

I am interested in finding out how other companies treat comp time in general. Also, more specifically what if Sunday travel is unavoidable to get to a Monday meeting, how should this Sunday be treated, since it is not part of the scheduled work week. Also, in regards to special events where the employee is required to work the event and the event is on a weekend or weeknight? Thanks for your insight!

I know that the schedule of reportable transactions reports gains and losses based on a market to market approach. Should the same schedule attached to the financial statements use the actual cost in the "Cost of Asset" column since generally accepted accounting principles requires a cost to market approach? On the face of the financial statements, we combine realized and unrealized gains (losses) so the different method is not issue there.

Thanks for any help.

I requested my broker to convert $4000 from my traditional IRA to a Roth on 12/20. They did not do this until 1/16/01. They sent me an apology letter, indicating I should consult my tax advisor about a possible exception. Is there any way I can have these funds considered converted in 2000?

I have a client who operates a calendar year premium only plan. They are thinking of amending the plan to add a dependent care benefit to the plan. Am I correct in thinking that the effective date of this new benefit would have to be January 1, 2002? In other words, it is not permissible to make this new benefit retroactive to January 1, 2001 since the salary redirection agreements have to be in place before the start of the plan year (except for new participants of course).

Company A and Company B have adopted a Multiple Employer Plan. Person Z is a long time employee of Company A. Person Z quits Company A and goes to work for Company B. Does Person Z have to re-meet the eligiblity requirements with Company B?

Also forfeitures under this plan reallocate. Should forfeitures of Company A employees be reallocated to only Company A employees or should they reallocate to all participants reagrdless of employer?

When can an individual withdraw from a 401K and not be subject to the 10% penalty.

A woman was terminated from her job last year and took all the funds to live on. She was 55 last year.

How are the 401K rules different from the IRA rules or are they basically the same? Any suggestions on where to find this info on the web so I can read up on them.

Thanks for any help.

If an employee works for two unrelated employers and they both have simple plans, is the limit 6500 overall? I know simple plus 401k <=10500, but how about two simples. Logic says 6500 no matter hom many simple plans ee participates in. Vanguard told a potential client the ee (partial owner in both companies) could do up to 10500.

Once again Employers are late on deposits. I know that even if all the funds lost money, earnings still have to be deposited. Does anyone know where I get the percent rate to use on these late deposits? I can check on the "best" rate of return on the actual funds, but I think they ALL lost money in 2000 on this particular case. Thanks for any help.

Are the rules for late deposit of employee 403 (B) contributions the same as 401 (k). I have a 403 (B) client who has indicated she transfered some of the contributions late in 2000.

Thanks for any help.

A broker approached our company trying to sell the following product:

A health care spending account where the employee does NOT need to make an annual election. The employee receives a medical service, turns in a receipt, the employer takes out a pre-tax deduction for that amount from the paycheck, and then employee is reimbursed in the same check.

This broker said that this fell under Section 125 (he had no paperwork to back any of this up). This makes no sense to me. I'd be interested to hear if anyone else has heard about this new "plan."

Thanks.

What is the basis for distinguishing between S corp.'s and C corp's when deciding whether dividends on allocated shares can be used to pay off an exempt loan? The IRS has allowed C corp's to do this, but not S corp's. Why?

Wanted to get some confirmation or input on the following hypothetical case: Husband has sole proprietor business and wife helps out. They have always filed a Sch C with a single Sch SE with the husbands name on the Sch SE. They now want to sponsor a Keogh plan with the wife participating.

I have always advised they must form a partnership or pay the wife a W-2 comp as an employee for her to participate in the plan, so that she has earned income. Filing 2 Schedule SE's is not an option, because if the husband and wife are in business together, the IRS would say they have a partnership and must file a partnership return (and the partnership K-1's would show earned income for both). Community property laws in Texas, CA, etc. don't impact this analysis, as the earned income is assigned to one spouse per the Sch SE instructions and Pub 533 on Community Property and Income.

Correct? Thoughts or comments? Thanks.

An employer failed to trasmit participant contributions when due. The employer will pay to the Plan the amount of the profits which resulted from the prohibited use of plan assets using the IRC Section 6621(a)(2) underpayment rate. When filing the Form 5330, what is the actual amount involved in the prohibited transaction? Would it be the principal amount plus restored profits or just restored profits?

A nonelecting church defined benefit plan is considering adding a pre ret death benefit that will be payable upon the death of a single parent (participant) to children (under the age of 23). The plan already has the std "REA" pre ret death benefit for marrieds.

Question: Can the plan include this additional death benefit? Can the benefit be more genereous than the "REA" death benefit? Also note that(1) single participants or (2)single parent participants with children over the age of 23 would not be eligible for any pre- ret death benefit under the plan.

I can't seem to find any IRS/ERISA references that would disallow such a feature. Of course the benefits would have to be tested if there were HCEs in the plan (Presumably there are no HCEs).

Although my recommendation would be to stay away from such a feature and go with term insurance (instead), I can't seem to find any regulatory reference that would forbid this.

Meggie

Does anyone have a good source for finding historical values of LIBOR rates? (Specifically, April 28, 2000)

I'm learning as much as I can about the Traditional v. Roth discussion, but have yet to hear anything on the advantages and disadvantages of contributing to both ($1K in each account annually, $2K total). Any comments?

What is your policy on the treatment of excess cash created from corrective trading? Should it be given to the participants involved in the correction? Should it be moved to the forfeiture acct? Should an allocation be done across all participants?

To clarify, excess cash created from corrective trading for this question means: If a purchase trade is placed in error (for example, a mistake is made and a contribution is traded without funding, so the trades are reversed), depending on the market swing there can be a gain when the shares are sold back. Also, when a corrective trade is made and it is necessary to buy a certain number of shares, since buys can only be in dollars, estimation can lead to excess shares, and when those excess shares are sold back, and depending on the market, there can be a gain there as well.

I have a sixteen year old who wants to start a Roth Account. I have been told that he has to earn $2,000 in taxable income in order to do so. When he works he usually completes the W-2 saying he's exempt so that taxes are not taken out. Could someone clarify for me.

I want to acquire a list of mutual fund companies that offer 403b7 plans. Our district has Fidelity and Vanguard, as well as many other annuities. However, I would like to have them add other companies.