i am about to change jobs, and i just want to make sure i am able to roll my 401k into my roth ira.

are there any conditions or restrictions i need to worry about. i don't make 100k/yr.

Presume a SARSEP fails the 50% minimum participation test two years in a row - 1999 and 2000. Upon discovery of the problem late in 2000, all deferrals are stopped. If I understand correctly, presuming timely notification to employees, and timely withdrawal of disallowed deferrals, the only tax consequences of unwinding are the additional income tax to employees - and, I am guessing, the additional employment taxes the employer must pay on the re-included income. But for the prior year, the employees must ALSO potentially pay excise taxes on disallowed deferrals and earnings under IRC Secs. 4973 and 72(t), respectively, and the employer must potentially pay a 10% excise tax for untimely notification of excess SEP contributions. Is that correct? And, in either year the SARSEP failed the 50% test, can the employees "keep back" $2,000 as a deductible IRA contribution for each year, or must all deferrals be withdrawn?

Is there any regulation regarding the plan posting

the funds sent by the employer to an employee's account?

Does your monitor seem to give you headaches? Are you using Windows?

I've seen a lot of folks who are working on monitors that "flicker," causing eyestrain and headaches, especially when the monitor is in a room that's illuminated by flourescent lights.

Often a quick and easy solution is to change the "refresh rate," which is a setting in the "Display" program that's part of the "Control Panel" in Windows. On my Windows 98, you'd click Start -> Settings -> Control Panels -> Display (double click) -> Settings (a tab) -> click Advanced button -> look for an Adapter tab -> look for a Refresh Rate setting.

Try setting the Refresh Rate to the highest value in that list -- 85 Hz or 75 Hz, for example. And try "Optimal" and "Adapter Default." Windows 98 lets you preview how the monitor will look under the new setting, so you can go back to the current setting easily if the new setting is no better or causes the monitor to act strangely.

Sometimes the difference is truly amazing. While visiting my accountant's office I made the change for their receptionist, who now thinks I walk on water

The employer wants to base profit sharing plan contributions on the following: $150/month for each employee with perfect attendance, $150/month for each employee with no accidents, $200/month for each employee based on some production goal for the company as a whole. No HCEs will benefit under this plan.

I haven't worked out all of the language yet, but wanted to know if anyone saw anything wrong with the basic concept of this just on the surface.

Also, the ER wants to base these incentives on monthly goals (perfect attendance for the month, etc), but still wants a last day/1000 hr rule. My concern is that if the plan specifically allocates on a monthly basis, how can we have last day/1000 hr requirements?

Am I correct that an employee can defer under both a 401(k) plan and a non-model (prototype) SARSEP plan of the same employer provided that the 402(g) limit is not exceeded when deferrals from both plans are combined?

Can an employer that maintains n IRS model SARSEP also maintain a qualified plan if each plan covers separate groups of employees (no overlap)?

Do all cafeteria plans need to be amended by December 31, 2000 including those that are premium only plans? Or is the amendment only required for accident and health which cover medical expenses?

[Reprinted below is a story posted anonymously on the Web.]

Many years ago, when I worked as a volunteer at a hospital, I got to know a little girl named Liz who was suffering from a rare and serious disease. Her only chance of recovery appeared to be a blood transfusion from her 5 year old brother, who had miraculously survived the same disease and had developed the antibodies needed to combat the illness.

The doctor explained the situation to her little brother, and asked the little boy if he would be willing to give his blood to his sister. I saw him hesitate for only a moment before taking a deep breath and saying, "Yes, I'll do it if it will save her."

As the transfusion progressed, he lay in bed next to his sister and smiled, as we all did, seeing the color returning to her cheeks.

Then his face grew pale and his smile faded. He looked up at the doctor and asked with a trembling voice, "Will I start to die right away?"

Being young, the little boy had misunderstood the doctor; he thought he was going to have to give his sister all of his blood in order to save her.

You see, after all, understanding and attitude are everything.

[Reprinted below is a story posted anonymously on the Web.]

In ancient times, a king had a boulder placed on a roadway. Then he hid himself and watched to see if anyone would remove the huge rock. Some of the king's wealthiest merchants and courtiers came by and simply walked around it. Many loudly blamed the king for not keeping the roads clear, but none did anything about getting the stone out of the way.

Then a peasant came along carrying a load of vegetables. Upon approaching the boulder, the peasant laid down his burden and tried to move the stone to the side of the road. After much pushing and straining, he finally succeeded.

After the peasant picked up his load of vegetables, he noticed a purse lying in the road where the boulder had been. The purse contained many gold coins and a note from the king indicating that the gold was for the person who removed the boulder from the roadway.

The peasant learned what many of us never understand. Every obstacle presents an opportunity to improve our condition.

[Reprinted below is a story posted anonymously on the Web.]

In the days when an ice cream sundae cost much less, a 10 year old boy entered a hotel coffee shop and sat at a table. A waitress put a glass of water in front of him.

"How much is an ice cream sundae?" he asked.

"Fifty cents," replied the waitress.

The little boy pulled his hand out of his pocket and studied the coins in it. "Well, how much is a plain dish of ice cream?" he inquired. By now more people were waiting for a table and the waitress was growing impatient. "Thirty-five cents," she brusquely replied.

The little boy again counted his coins. "I'll have the plain ice cream," he said. The waitress brought the ice cream, put the bill on the table and walked away.

The boy finished the ice cream, paid the cashier and left. When the waitress came back, she began to cry as she wiped down the table. There, placed neatly beside the empty dish, were two nickels and five pennies. You see, he couldn't have the sundae, because he had to have enough left to leave her a tip.

[Reprinted below is a story posted anonymously on the Web.]

One night, at 11:30 PM, an older African American woman was standing on the side of an Alabama highway trying to endure a lashing rain storm. Her car had broken down and she desperately needed a ride. Soaking wet, she decided to flag down the next car. A young white man stopped to help her, generally unheard of in those conflict filled 1960s. The man took her to safety, helped her get assistance and put her into a taxi cab. She seemed to be in a big hurry, but wrote down his address and thanked him.

Seven days went by and a knock came on the man's door. To his surprise, a giant console color TV was delivered to his home. A special note was attached. It read: "Thank you so much for assisting me on the highway the other night. The rain drenched not only my clothes, but also my spirits. Then you came along. Because of you, I was able to make it to my dying husband's bedside just before he passed away. God bless you for helping me and unselfishly serving others."

Sincerely,

Mrs. Nat King Cole.

[Reprinted below is a story posted anonymously on the Web.]

During my second month of nursing school, our professor gave us a pop quiz. I was a conscientious student and had breezed through the questions, until I read the last one: "What is the first name of the woman who cleans the school?"

Surely this was some kind of joke. I had seen the cleaning woman several times. She was tall, dark-haired and in her 50s, but how would I know her name? I handed in my paper, leaving the last question blank.

Just before class ended, one student asked if the last question would count toward our quiz grade. "Absolutely," said the professor. "In your careers, you will meet many people. All are significant. They deserve your attention and care, even if all you do is smile and say 'hello'."

"I've never forgotten that lesson. I also learned her name was Dorothy.

My wife and I have 401k's file jointly and have agi less then $100k. I understand I'm not eligible for a traditional IRA but am for a Roth. Assuming this is true I have the following questions

1. how much $$ to start a Roth?

2. Am I limited to one fund?

3. Or Can I est. a Roth as a stock portfolio that would contain the stocks I pick and choose as I find and buy them?

Has anyone figured out whether the $6000 deferral limit to SIMPLE IRAs will increase for 2001?

Has anyone seen a discussion on the PLR 200038051 issued earlier this year which discussed a 401(k) plan's violation of ERISA for failing to pay accrued interest to terminated participants for the period from the plan's most recent valuation date to the date of each participant's distribution? It has been my understanding that 401(k) plan distributions can be based on the last valuation date, as long as the length of time between the valuation date and the distribution isn't excessive. Our documents say that it is up to the plan administrator to determine if a new valuation is needed. Any idea if there is now a requirement to pay a certain interest rate?

In a top-heavy plan, if a non-key employee receives only the top-heavy minimum contribution of 3% of pay (worked only 100 hours during year and so did not qualify for full contribution), is that employee considered to "benefit" for 410(B)?

Reg. 1.401(a)(4)-2(B)(4)(vi)(D)(3)says, in part: "...the top-heavy formula does not fail to be available on the same terms as the other formulas under the plan merely because it is available to all employees described in §1.416-1, Q&A M-10 (i.e., all non-key employees who have not separated from service as of the last day of the plan year). The preceding sentence does not apply, however, unless the plan would satisfy section 410(B) if all employees who are benefiting under the plan solely as a result of receiving allocations under the top-heavy formula were treated as not currently benefiting under the plan. "

This makes it appear that employees should be treated as not benefiting if they only get the top-heavy minimum.

However, IRS alert guideling Explanation No. 5 says, in part "... However, if the plan is required to provide top-heavy accruals for the plan year, or if the plan takes future compensation increases into account in determining accrued benefits, the plan will have to be tested for coverage." Although this seems to refer to DB plans, it also seems to imply that top-heavy minimums would be tested under 410(B).

So if someone only receives the top-heavy minimum contribution, are they treated as benefiting under 410(B)? Are they left out of 410(B) coverage testing completely? Thanks for any opinions.

Can administrative fees from a plan audit be paid from the plan??

I recognize there is no such thing as a "normal" match to a 401(k) plan. It depends on the company size, their industry, whether or not there they offer other plans, their compensation philosophy (pay vs. benefits), etc.

Ignoring all of that, what is a "normal" match --- more specifically, in the internet, software, computer industry.

Admittedly, surveys can only provide rough guidance. But, I'll take what I can get.

(My starting point for a match in consulting situations is 50% for the first 6% of compensation. Gee, what a concept. And then I go up or down depending on affordability, etc. But here, the issue is not only affordability, but business competitiveness.)

Thanks

What is the Federal, State and local income tax consequence of a lump-sum death benefit from a DB governmental plan?

Thanks,

Joel L. Frank

Can a plan add a mandatory cashout provision if it has not had one before or does this violate 411(d)(6)?