Would you report a loss on an excess deferral (pre-April 15th) separatly from the excess deferral, or once in the prior year net of the loss? For example, say a participant deferred $11,000 in '99 and the $1000 excess was worth $900 when it was removed in March. Would you report the $1000 in '99, and -$100 in 2000, or just the $900 in '99?

A medical doctor practices two separate specialities (general surgery & family practice). He is a 50% partner in a two man member PLLC (which only performs general surgery)... the PLLC has a KEOGH-MPPP. He also practices family medicine as a sole-proprietor ...which has a defined contribution SEP. The partnership & sole-proprietorship are NOT related in any way (regarding services or billing or location etc.). QUESTION: Can he contribute $30,000 to each of the two plans in the same year (a total tax deduction of $60,000) ?? OR must the two entities (partnership & sole-propritorship) be aggregated and deemed a "single employer" ? A tax code or court case would be much appreciated.

I have come across an IRS opinion letter that suggests that administrative fees charged on participant distributions may not be permissable. Does anyone have any guidance on this matter?

Assuming no HCEs benefit under the plan there will not be any discrimination issues. The classes of NHCEs that they want to exlude can be named as excluded classes on a protoype document. Are these office employees of the temp agency, so that they don't work for other companies? Are the HCEs covered under another plan?

Assume that A, B, C, D and E sell shares to ESOP. A and B elect 1042 treatment with respect to their shares; C, D and E do not make a 1042 election. (A, B, C, D and E are unrelated and owned less than 25% of corporation.) Two questions: (1) Can C, D and E receive allocations under the ESOP of both 1042 and non-1042 shares? It seems to me that the answer is "yes" because C, D and E did not make a 1042 election. (2) Can A and B receive allocations under the ESOP of the non-1042 shares (i.e., the shares sold to ESOP by C, D and E)? The language under Code 409(n) seems to prohibit the allocation to A and B of shares "to which section 1042 applies". If this is correct, then it would seem that A and B could receive non-1042 shares. Thanks for your help.

If an employee has worked for two unrelated employers during his or her taxable year and had excess deferrals when those amounts are aggregated, does this only raise a personal tax issue for the employee (inclusion of the excess in gross income) or does it also create a qualification concern for the unrelated plans/employers?

Does anyone know of fund companies that do the daily recordkeeping, have 1-800 and/or Internet, and offer downloads to TPAs?

I know MFS and Kemper do. On the insurance side Nationwide, Manulife and Aetna I think do, but I would prefer to stay away from the annuity products.

Any other suggestions? I like these arrangements because it leaves the work that we do best to us - compliance, consulting and 5500 work, but not many fund families offer this type of arrangement.

If a plan participant finances her Lasix eye surgery, is her expense only reimbursable during the plan year the procedure is performed or can she submit each payment for reimbursement as she pays them? This would mean that she would be submitting for reimbursement over several plan years.

Will I comply with the separate accounting rules if I designate a set amount, $10,000, for example, to be given a charity from my IRA with the remainder given to my living trust on the IRA beneficiary designation form? Will I have to transfer the interest on the $10,000 each year to the other account? Will I be able to use the life expectancy of the beneficiary of the trust for the RMD calculation for the other account?

Many plan documents provide for accepting rollover money prior to an employee becoming a participant. Can the plan document or loan policy provide for loans from this rollover money prior to the employee becoming a participant?

Does anyone know of a website that would allow you to input information to calculate a MRD from an IRA or qualified plan? That is, input balance, participant DOB, beneficiary DOB, recalculation method, etc...

I have seen hand-written spreadsheets for this, but am curious if one exists on a website that could be plugged into.

Thanks.

A company has two plans: profit sharing & 401(k) plan. Both plans have different vesting schedules. The 401(k)plan has a provision for discretionary contribution. The company wants to merge the plans for ease of administration. Would all employees in the PS plan have to be 100% vested upon termination of the PS plan? If not, how would you handle the different vesting schedules. Any direction would be greatly appreciated.

Is anyone using Quantech with the Datalynx (First Trust) investment module? I would be interested in any feedback you have on how this works. Also, Corbel told me I would have to upgrade my Quantech to the Professional Daily product? Is this true? The current system is capable of daily and appears to allow for the investment links if purchased. Why would I need to upgrade?

I think we would enter full blown daily step by step, first taking phone calls directly and transfer instructions by fax, but I want the trading directions and settlements to be automatic from Quantech to the funds. Then later on we can add VRU and Internet. Any suggestions?

I need help finding a program to replace my client's former partially self insured program. The client is a small manufacturing firm in NJ with 16 employeees. I need a recommendation of TPA/reinsurer that can accomodate a group of that size.

Any of the Pension Services (CCH, RIA) should have the historical tables if you wanted to dig a bit, or you may try Social Security's Web site. ssa.gov

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Last year I inadvertantly had a minimum distribution from a mutual fund transferred into my Roth IRA, even though I'm not eligible to make a Roth contribution. What is the procedure for undoing this mistake?

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

David Wight

Stock Plan Anaylst

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Every option is an opportunity

An S Corp. that has sold all of its assets and no longer has any employees except for the owner and his wife (ages 60 and 55). The corporation has been approached about setting up a DB Plan for its owners and funding it in the year of the sale to avoid c.g. tax on the sale. Thee owners are planning on looking into other ventures for the corporation, but have no definite plans at the moment. The owners plan to work only for a few more years in any event. I have a number of questions on whether this can work. Among these are:

1) The permanency and subterfuge provisions in 1.401(1)(B)(2) and (3),

2) Whether an S Corp. can offset an ordinary expese against capital gains?

3) Whether there is a method to fund the DB entirely in a single year and still take the deduction?

4) The effect of the phase in of the $130,000 Section 415 limit based on years of participation?

5) The general advisability of converting c.g. into ordinary income through use of a pension plan.

Any thoughts, articles or cites would be appreciated.

A friend transferred the balance of her 401k plan (begun while working for a former employer) to a Roth IRA in 1998. Was this rollover taxable? Would the same transaction be taxable today?