Where plan records are available to separate the pre-1989 amounts, are pre-1989 matching contributions (and other non-401(k) deferral money) that are distributed in a hardship distribution eligible for rollover?

I just started trading stocks with my Roth IRA Account. I track everything yearly for trading, but wasn't sure if I was required to do the same for the Roth?

My assumption was no, because the money is non-taxable. That would mean no tax on gains and no write off on losses. Correct?

Does anyone know of a good website to obtain copies of old Rev.Procs, Notices, etc., say back to the early '90's ??

I read a commentary that says that Code sections 419 and 419A do not apply to governmental employers. No citation in support of the statement was given. Is this correct? I haven't been able to locate authority for this statement. Any help you can give me (either way) will be appreciated.

Thank You,

Dan Wintz

I am an auditor of Employee Benefit plans within an accounting firm. We historically have audited plans up to about 400 participants. Recently, we were asked to propose on a plan with 2100 participants. What I would like to know: How many participants should I use as my sample size in order to get comfortable with the whole plan? Our reference material, PPC, discusses 25 and 60 as a sample size without reference to how many participants it is talking about. Can anyone share their experiences either from the audit or the audited standpoint? If you have any reference material I should refer to that would be appreciated. Thanks for your help.

A union employee left the company several years ago and was never eligible to participate in the profit sharing plan because union members were excluded. He is now rehired as a non-union employee. If his breaks in service is not greater than 5 years, is he immediately eligible to participate in the plan or does he have to wait one year?

How is employer stock worked into a 401(k) takeover? While moving the assets from one plan admin to a new plan admin, how is the stock handled?

A major mutual fund company made an error on my 1998 tax reporting that I didn't catch until now. They are refusing to correct this error becuase of the time frame invovled. They say that my "due diligence" has kicked in and it was my responsibility. At what time did this responsibility become mine and not the mutual fund company's since they were the ones at fault? I'm look for an IRS code or regulation that specifies how long the mutual fund company is responsible.

Thanks!!!

Is a SAR required when filing a final 5500? The DOL reg says that the report must be given to all " participants and beneficiaries receiving bebefits under the plan". After the plan has been terminated and all participants and/or beneficiaries paid out, is there anyone left to whom a report is due? Normally this is not a problem, but with Hyperpreps annoucement that its SAR-W program will not be released until the month after shipping the R forms for 1999, I would like to at least clear out all of my terminated plans now, rather than waiting another month or more.

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Looking for Private Investors to provide funds to Ferndale Capitol Funding, LLC.

Providing hard-money loans for business to business needs, secured by a first mortgage in real estate, with an 18% interest rate. Will provide all the documentation.

Serious Inquiries Only, Please. **(Roth IRA's-tax free investment.)**

[Edited by Acrsa on 07-06-2000 at 04:08 PM]

The plan does not allow rollovers from other qualified plans. Several years ago a participant was allowed a rollover into this plan. What remedies (i.e. amending the plan to allow rollovers) are recommended and what consequences are there for this plan?

It is a long story but in order to comply with Rev. Proc. 90-49 which enables employer to take out non-deductable contributions from the plan, i need to change the valuation date from the 1st day of the plan year to the last day of the plan year. is there a procedure for doing this?

I seem to recall that an LLC can establish the equivalent of a stock option plan for its employees, though I don't recall where I read that. Any thoughts? Thanks.

A participant is 100% vested in a money purchase plan receives a distribution. Six years later the individual is reemployed.

Under 410(a) does the employee have to meet initial eligiblity again, or must the employee be immediately reinstated (subject to the permissive condition that he complete a year of service after rehire)?

[This message has been edited by KJohnson (edited 07-05-2000).]

I have a client who accepted a rollover check on 6/24/00. The check (which was dated 4/27/00) was drawn from another qualified plan and was made payable to the trustees of the new plan. The Plan Administrator proceeded to obtain investment instructions, etc. Today is 7/5/00 and the check is now ready to be deposited to the trust. Do I have a problem with the 60-day rollover rule?

A participant has a deferral account balance of $6,000; $4,500 in deferral and $1,500 in earnings. He takes out a loan for $2,000.

Some time after the loan, he is eligible for a hardship distribution. Assuming that the account balance has not changed, how much can he take as a hardship distribution? The account now has $4,000 in other investments and the $2,000 loan balance.

Can he take the full $4,000? The $6,000 account balance less the $1,500 earnings, that must stay in the plan, equals $4,500.

Or, is he limited to $2,500? The $4,000 in other investments less the $1,500 in earnings.

I believe that he can take all $4,000 of the other investments. The $1,500 in deferral earnings that must stay in the plan is still there, invested in the loan note.

You are 73 and you die. You are single and have three sons aged 41-46. Your IRA has $2,300,000. You have to pay estate tax but can the balance be tranferred to the heirs and they can pay it as they take some kind of minimum distribution thru their lives?

I am 68 years old and in good health. I have $1,500,000 in a traditional IRA all in stocks. I am debt free and need very little to live. $25,000 yearly is all I need to be happy and take care of all needs. I have three sons I want to leave as much as I can when I pass. Uncle Sam is not one of them. I plan to sell off about $250,000 in 2000 and another $500,000 Jan 1, 2001. I pay the taxes in 2000 and pay witholding for the $500,000 and both come to about $300,000. I then convert $750,000 to $800,000 to a Roth and I pay the $320,000 out of the personal account. I leave it alone for 5 years. Say it grows to $1,500,000 and the estate deduction is $1,000,000. Is this estate tax immune from estate taxes?

A man dies is Sept 99. His estate is valued at $975,000. Included is an annuity valued @575,000 which gained $275,000 since started and a IRA worth $125,000. The estate taxes of about $77,000 are paid. I assume he now has to pay income tax on the $275,000 annuity gain and then IRA of $125,000 for a total of $400,000. that means a tax bite of $160,000. Question? Can you distribute the 00,000 to the heirs ( who are in a lower tax bracket)and let them pay the tax as income for this year?

A new SIMPLE 401(k) Plan is established 7/01/00 with the proper notice to employees. The employer elects the matching formula. For determining the match amount, is it comp from 7/01/00 to 12/31/00 or the entire calendar year? In other words, an employee may defer 3% from 7/1 to 12/31, which is 1 1/2% of annual pay. Is the employer match 100% of the 6 month deferral (1 1/2% of pay) or 3% of calendar year pay? The employer wants the latter result. Alternatively, could the effective date be 01/01/00 to include full-year comp? Thanks.