Participant in 401(k) plan (segregated accounts) with 2 outstanding loans comes back to work after maternity leave and now works only 2 days a week (previously full time). Loan payments were payroll deducted prior to leave, but part-time pay is not enough to cover loan payments. Loans were amortized over 5 years originally, so cannot re-amortize to lower payments. If she takes a deemed distribution, is she still required to pay back loans? If so, how? If not, will loans continue to be an investment of the plan and accrue interest?

Does anyone know if there are any audiotapes covering the C2(DC) material? I commute and would like to try to study while commuting. Thanks for your help.

Ann Monaghan

aam@ebrworld.com

Can monies be withdrawn from the Roth Ira to pay for College expenses, i.e. tuition. If so, tax free or not?

Is there any guidance on who can be considered a family member for purposes of the hardship withdrawal rules and the funeral expenses example? Can a plan document define family member any way at all (2nd cousins counted, for example), should the definition under 414(q) be used, etc.?

Are there any instances where protected benefit issues apply to non-qualified plans?

Is there any restriction on the timing of a participant's election to use the section 457 catch-up provision? In other words, would a participant be able to elect to have catch-up apply for a given year during the week before the participant retires, or does this election need to be made at the beginning of the three-year (or lesser) period to which the catch-up is intended to apply? Does the fact that amounts may be deferred for any calendar month only pursuant to a deferral agreement entered prior to the first day of the month suggest that the catch-up election must be made in advance, because it's essentially a new or different election?

Under IRC 415, what is the maximum retirement benefit from a governmental DB plan starting at age 55?

We have a leasing organization client that sponsors a multiple employer plan with several separate organizations adopting the plan. The research we have done tells us that the recipient employers that have adopted this plan must be tested for non-discrimination separately. The recipient employers must include the leased employees that are employed at their site in their individual ADP tests. The one question that we can't answer is whether the leasing organization must also include ALL of the leased employees in their test as well. In other words, the leased employees would be counted in two tests, one for their respective recipient employer and one for the leasing organization. Can anyone answer this or at least point us to a website or reference that can?

We had an employee go out on a medical leave on his 9 month anniversary. Because he had not been employed by our company for 1 year, his leave was not covered by FMLA. Three months later, he is still on leave and has reached his 1 year anniversary with the company. Do we now have to offer him 12 weeks of FMLA?

In the Los Angeles Times "Parade" section on October 22, 2000 is an article entitled "Is the Roth Ira for you?" -- In the last paragraph, it states, "Consider opening a Roth IRA as a gift to your children."

Can this be done even without earned income? I like to open one for them by giving them a gift.

Also, what about from the money earned as dividends from their stock portfolios?

I WOULD LIKE TO INVEST IN A ROTH IRA. I AM PRESENTLY INVESTING 20% OF MY INCOME IN A REGULAR IRA THROUGH COMPANY PAYROLL DEDUCTIONS. WILL THIS CONFLICT BY HAVING TWO IRAS? ALSO MY SPOUSE WHO IS 65 AND RETIRED WOULD LIKE TO INVEST IN A ROTH IRA WITH ME. IS THIS POSSIBLE?

THANKS, FRANK

I was named beneficiary of my ex-husbands 401k plan. He worked at this company while we were married, and left them before we divorced, retaining his 401k plan with them. We agreed to leave me as beneficiary mainly because we have children, I in turn left some of my policies in his name.

He passed away last year and I could find no paper work to contact this company, until they mailed me last month. I promptly called them and was told I was still beneficiary of his 401k. I was asked to supply several pieces of information to verify all this. When I informed them we had divorced the lady became very curt and stated simply that I was entitled to nothing because we had divorced. I explained that we had not known that a divorce would affect this or we certainly would have not left it this way. She said she could not help me, that she was following federal guidelines that stated I received nothing if we were not legally married at the time of his death. She then asked me to obtain and send her a copy of his death certificate so she could close out his account with the company and that the company would absorb all funds from this account. I asked for the policy and the federal guidelines that she said she must follow to be sent to me and she said she could not do that. I am now at a loss as to what to do. If I have no rights to the funds, so be it, but don't I at least deserve to see the paperwork? She also said I may need to sign a paper stating I am not entitled to anything. I have looked for information on this and can find nothing really helpful. My ex-husband was only 35, so he did not reach retirement age, is this the reasoning behind no benefits? Can someone enlighten me on this subject and possibly where to find these federal regulations she spoke of? I tried to get answers from her but she said she could tell me nothing more, once she confirmed I was divorced, even with me named as his beneficiary. Thanks so much.

In a money purchase ESOP plan about 15% of the assets of the plan are currently in the money purchase source. The MP source includes both employer stock and other investments. The ESOP loan has been paid, so there is no leveraged stock in the plan at this time.

An employee is eligible to make a diversification election for 25% of the employer stock in his account.

How do I determine what source to take that diversification election from? Pro-rata? Money purchase first? Money purchase last?

The employee has the option of taking a cash distribution or transferring to the employer's employee directed 401(k) plan. The plan does not specify any other options for divesification. Should it include an annuity option? Otherwise, without spousal consent, can the participant elect to diversify the MP portion?

If the transfer to the 401(k) plan includes assets from the MP source, does the 401(k) plan have to track it as MP source or something else, like rollover? If MP assets are transferred to the 401(k), does the spouse have to sign a J & S waiver? I would think so, unless the 401(k) plan tracks the transfer as MP source.

when a beneficiary inherits a roth IRA, does that indiv have to take MRD's over their lifetime or could they continue to let grow tax-deferred during their lifetime and pass on to a future generation?

Is the deadline for 2000 roth contributions 4/15/01 or 12/31/00?

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)?