What is your practice pertaining to Copies D, 1 and 2 of the 1099-R? One of the copies of 1099-R that we ordered says "State Copy or Copy D for Payer." The 1099-R Copy D on the IRS website only says "Copy D for Payer." Does anyone else order copies that read state copy or copy for payer? Does everyone else send out Copy 1 and/or Copy 2? Does anyone send more than 1 copy of Copy 1 or Copy2?

May a reinsurance company quote specifics for different individuals based on medical statements? By this I mean a reinsurance company looks at the medical statements of all enrollees and offers an aggregate total which is quite high. Then the reinsurer breaks it down so that every one in the plan has a specific (say $50,000) except for one individual who has a specific much higher. This is more affordable to the company than the aggregate that was quoted. There is something about this that makes me uncomfortable. I would appreciate any thoughts or sites on this. Does it matter that the plan is self-funded and the reinsurer is issuing a policy in Ohio? Is it state law that regulates the reinsurer? What about HIPAA and non-discrimination?

If a plan is amended to incorporate a short plan year, must the amendment be signed before the end of the short year?

Employer has a calendar year 401(k) Plan. Can the employer amend to a SIMPLE 401(k) mid-year and avoid a top heavycontribution? I believe the answer is "no", any amendment would be effective the following January, but I am not positive.

I am 22yrs old i just sent $2,000. into Putnam Investments to start a roth IRA I want to know if it is mandatory that i make a contribution to the ira each year or is it optional. My second question is, is there any risk of losing the original $2,000. i invested. thank you

We have 2 manufacturing plants. One in California and one in Georgia. Because we have a high turnover in our Georgia plant we would like to set the eligibility time for sick time and medical for 180 days. We would like to set the eligibility time for our California plant for 90 days. Can we have differing eligibility times for the different plants? Please help me! I need to know this ASAP.

Thank you. Please e-mail me your answers at mbennett@expac.com

Can anyone tell me where to locate IRS Section 401(a)(4) and 401(a)(7) as it existed on 9/1/74? I need to find out what the pre ERISA minimum vesting standards were which are applicable to non electing Church Plans.

In an asset sale, the Buyer expressly agrees to assume COBRA liabilities as of the closing date and will also be hiring all employees associated with the assets being sold ("Transferred Employees") on that date. The Buyer maintains no group health plan until a month AFTER the closing, and so the Transferred Employees have lost their group health coverage as of the closing date (until the date the Buyer begins to maintain the group helath coverage one month later). The Seller is selling off only one of its divisions in the asset sale and will continue to maintain a group health plan after the transaction. Therefore, the Buyer is not a "successor employer." What are the Seller's and the Buyer's obligations in this situation?

Thanks!

Is a Medical Savings Account required to file a Form 5500?

My wife and I have each been contributing $166.66 per month to a Roth IRA during 2000. Due to a large unexpected bonus I received at year-end, our AGI was in excess of $160,000. Do we need to have our two Roths converted into traditional IRAs for 2000 and if so is the normal deadline 4/15/01. Also, since I contributed over $15,000 into my 401(k)plan in 2000, does that have an affect on the above course of action?

I am the Assistant Firm Administrator of a law firm downtown and it has been requested of me to poll as many employers in the field of law as possible as to their sick/vacation policies. We are currently in the process of re-thinking our existing policy. Any suggestions or examples of your policies would be greatly appreciated.

I have a client with a defined benefit plan that has a 5 year graded vesting schedule. There will be a partial termination with respect to a group of employees who will be fully vested. Most of these individuals will take a lump sum distribution of their full accrued benefits. If one of these participants is subsequently employed at a different location and again becomes a participant of this plan, do years of service prior to the break count towards vesting in the benefit accrued after the break?

For example, an indivual who had 2 years of service became 100% vested because of the partial termination. 4 years later he is rehired and participates under the same plan. Under 411(a)(6) it does not seem that this pre-break service can be disregarded, even if the break were more than 5 years since he was fully vested before he left.

The cashout rule of Reg. 1.411(a)-7 does not seem to help either.

Seems like I must be missing something, because it is burdensome to have to keep track of prior participants just so one knows whether or not to credit prior service.

Any thoughts would be appreciated.

The IRS has finally done something right. Under the new MRD rules there is no more worries about using recalculation. There are more generous MRD life expectancy tables. You can name a new beneficary after age 70 1/2 and not effect the payout rate. Of course only the IRS can simplify something and take a 108 pages to do so.

Participants in company Profit Sharing Plan with plan year end of June. Annual valuations. Terminated employees are paid their balance from the most recent valuation period. If earnings are due - a second check is issued. What happens if there is a net loss and the participant looks to be overpaid?

I and a friend(not related) are interested in purchasing real estate with our Roth IRA monies. How can we do this? Is there a fund manager that will handle these types of transactions. Any Help?

I have been participating in the 403b7 plan at work and am fully vested in my contributions and my employers. I also have a 403b7 plan from a prior job that I keep since I like the investment options, service etc. much better. I would like to move money (via trustee to trustee transfer) from my current plan to the old one. The current TPA (Fidelity) says that they have no restrictions on such a transfer but my employer doesn't allow it.

When I questioned the benefits office at my employer they said that I need to separate from service or die to get the money transferred. I told them that seemed unreasonable to move my money to an investment that I wanted.

Does the ERISA or any other federal guidlines give me the right to do this?

Thanks in advance for any help you can offer.

Joe Hoffman

Well, forget everything you know about MINIMUM REQUIRED DISTRIBUTIONS. The rules changed on Friday. The new Proposed Regs (available on http://www.irahelp.com and http://www.deathandtaxes.com) are VERY tax-payer friendly and MUCH simpler.

But all the books and software that address MRDs are obsolete.

Just when I was afraid (contemplating possible passage of Estate Tax repeal) that I'd have to get an HONEST job!!

John L. Olsen, CLU, ChFC

Are homeopathic treatments reimbursable/excludible from income under flex or 105(h) plans?

I cannot find them list in IRS Pub. 502.

Is there any way around having to add the DB employee benefit percentages to the DC EBARS for purposes of the average benefits percentage test component of the general test?

Assuming the DC plan does not have all rate groups at 70%, does the DB need to be added?

It appears to me that the DB does not needed to be added if the DC is tested on a contributions basis (1.410(B)-5(e)(3)), but must be added if the DC is cross tested. Correct?

To any of the DB people out there: Isn't this true with a DB general test as well-i.e. if the DB is tested on a benefits basis, the DC can be ignored?

What are the rules for timeliness of deposits of deferrals when an employer has multiple payrolls? For some employers, with weekly, bi-weekly and monthly payrolls, contributions may be coming in all the time. Some service providers record-keeping fees discourage sending in contributions that frequently. Has anyone heard the DOL's opinion on this?