Residents in Federally Subsidized Housing pay rent equal to 30% of income. The local housing authority in CT is counting both interest on CDs held in an IRA and the required minimum distribution (person is over age 70) as "income".

I have been told there is nothing in HUD rega to give IRAs any special treeatment. Have there been any appeals to this type of ruling? This would seem to be a national problem with the popularity of 401k plans and IRAs which are treated the same way under this system.

A plan provides an annual COLA. A participant chooses the lump sum option. Is the COLA typically included? The plan does not explicitly state one way or the other. is there any feeling as to which is appropriate or what the default would likely be?

When a terminated participant is paid his entire vested interest in cash, and the employer stock that was previously allocated to his account remains in the trust, should that stock be reallocated to the remaining participants' "employer stock" accounts or is it held in the pooled "other investments" portion of the trust?

I believe that the demutualization award should be treated as a plan asset (and considered as investment return) to the extent that it derives from an annuity contract included in plan assets.

I'm wondering if I can take original contributions out of a Roth IRA at any time since taxes have already been paid on them. I'm 26 years old and would like to put $2000 in a Roth IRA, but I'm going back to school in the fall. Most likely I'll be able to support myself with part-time work, but if money gets extremely tight, would I be able to get the original $2000 out with no penalties?

Company X took over Company Y. Both have 401(k) plans. As part of the takeover, Company Y's plan terminated. The current service provider for Company Y's plan has been cold calling employees to get them to roll their assets into IRAs with the current provider. Company X wants employees to roll their assets into its 401(k) plan. Company X suggested to Company Y that the Company Y plan be amended to bar direct rollovers to the current service provider. Is this allowed?

How does the 15% limitation affect a SARSEP? My reference material states that the 404 deduction limit applies to SEPs on an individual basis rather than on an aggregate basis as in a profit sharing plan. I have a SARSEP in which a participant deferred 15% and the employer SEP contribution is 4.5%. In aggregate the 404 15% limit is fine. What are the consequences to this participant?

What are people doing about updating cafeteria plan documents under the final regulations issued in March, 2000? Or are people waiting until the proposed regulations from March, 2000 are also in final form??

------------------

I read that a "change in residence" qualifies as a change in status. If an employee moves, but insurance coverage does not change, does this qualify as a change of status such that his medical spending account election can be changed?

The "eligible employees" who would have joined the acquired plan have to be permitted to join the merged plan. See IRC 414(a)(1).

I am hoping that someone can clarify what I need to be aware of for the rest of this calendar year to ensure that I do not exceed my maximum AGI allowed for this year.

I am a single, 38 year old male and am under the impression that the maximum amount that one can earn during calendar year 2000 is $100,000 (AGI) in order to be able to transfer to a Roth IRA without having to recharictarize afterwards.

I converted approx. 17k from my 401k to a traditional IRA earlier this year and then from the traditional IRA converted the 17k (I requested 10% withheld for federal income tax purposes) to a Roth IRA. Therefore, approx. 15.3K was transferred to the Roth IRA.

Using this example / scenario, if my earnings from employment was 60K and I had short term capital gains income of 30k, would I qualify or would I need to recharitarize? I am under the impression that either the 17k or 15.3k that I transferred to the Roth would be added to my AGI and therefore I would go over. If either of these (17 or 15.3 are added) which one do I use for planning purposes?

Using the above scenario, if my earnings from employment was 30K and I had short term capital gains income of 60K, would there be any difference (90K in both examples) in determining eligibility for the Roth IRA conversion?

Are both earned income from employment and unearned income from short or long term capital gains included in determining AGI for Roth IRA eligibility purposes???

I want to do whatever I need to do to make sure I do not go over this limit as I truely believe the Roth IRA is the better long term retirement vechicle. I still have time to restrict my short term capital gains if necessary.

Thank you in advance for your assistance. If anyone has literature that you could forward or mention that uses some specific similar examples or lists all of the determinants in qualifying for the Roth IRA conversion, it would be greatly appreciated.

[This message has been edited by Kevin Martin (edited 06-25-2000).]

I'm looking for information on deferred accumulation plans in esops which I understand is a brand new area.

I'm looking for a discussion or explanation, preferably on a governmental web site, of the fiduciary responisilities of 457 plan administrators, e.g. that decisions have to be made solely in the interest of the employees. Thank you.

I am single 36yr old and the value of my Roth IRA has ballooned from the boom in technology stocks. I converted it 2 years ago at 176K to pay for the conversion I sold a principle residence at a gain and moved into a smaller place.

What is the maximum limitation to the value a Roth can be worth and will it be subject to excess distribution taxes and will my taxable 401 K be included in the calculation?

I am trying to determine what interest rate must be used when an employer is late contributing salary deferrals to a plan. It seems appropriate to look for DOL Reg 2510.3-102 for guidance. That reg seems to say that the rate used must be the highest rate of any plan investment over the applicable time (or the federal rate + 3 if greater).

Let’s say a plan has only 2 investments, and Fund A earns 100% over the applicable time, and Fund B earns 0% over the applicable time, and the federal rate + 3 = 7.5%. Further, there are only 3 participants in the plan. Participants X and Y are invested 50% in Fund A and 50% in Fund B. Participant Z is invested 100% in Fund A.

Participant X is deferring $100 per paycheck, Y $200 per paycheck, and Z $250 per paycheck.

The due date for the employer depositing the deferrals was June 10, 2000. The employer missed that date and is planning on making the plan whole, including interest, as of July 1, 2000. What amount of interest, in addition to the $550 in deferrals, should the employer contribute? How is the answer calculated?

Does the answer to a question like the above differ if the plan is a daily plan or a balance forward plan? How would a balance forward plan calculate interest from say, May 29, 2000 to June 15, 2000, if valuations are only done annually?

Is there any special considerations when paying a death benefit to a minor? Can the check be made out to them or does it need to be made out to their parent/guardian?

If an ESOP has been merged into a profit-sharing plan, must the ESOP continue to provide the IRC 409 voting rights pass-through to participants with an ESOP account? Would elimination of the voting rights pass through cause a 411(d)(6) problem? Thanks for any insight. Lesley

I have a participant who left her prior employer, rolled her qualified plan account(consisting solely of employer stock) in-kind into a conduit IRA. She would like to liquidate this employer stock, and roll the cash proceeds into our 401(k) Plan. Our document says nothing that would prohibit this. Is this permitted? If so, what tax consequences, if any, should she be made aware of? Thanks for any assistance.

If a plan operates in accordance with hair cut provisions on a case by case basis, must an employer turn over assets to a participant's bankruptcy estate?

An employer employs both union and non-union employees. It sponsors a 401(k) plan just for the non-union employees. The union now wants a 401(k) but the employer maintains they will not include them in their current plan nor will they be the sponsor of any new plan the union employees participate in. There will be no "company" contributions to the union plan and apparently this is not subject to the collective bargaining process. All the members of this union are employed at this particular company. The union maintains that they can sponsor a plan. Is this correct and do they just assume all the duties and responsibilities that an ordinary corporate plan sponsor would?