Hello everybody:

I'm a new kid in the block trying to get some useful information about the best ROTHIRAS to pick one an invest my money. I don't know where to search for that information. Anything will be helful to me and highly appreciated.

Thanks,

EM

Please clarify for me the applicability of TRA'97 relating to governmental plans. It seems that some TRA'86 sections were superseded by TRA'97 but recent revenue procedure notifications indicate that these supposedly overruled sections have until 2001 to comply, which means that the sections have not been overruled after all. Any guidance on this issue would be much appreciated. Thank you.

We have a 403(B) client (a nursing association) that would like to exclude a group of employees from participating in voluntary salary deferrals under the 403(B) plan. These employees are called "temporary care-giver" employees and do "normally" work less than 20 hours per week (sometimes they don't work any hours for several weeks, then sometimes more than 20). They are nervous about the "universal availability rule," but it seems clear to me that they may be excluded as a class under 403(B)(12). How can I give them more comfort with their decision to exclude them? Can we "average" out their hours over the course of they year to support a "less than 20 hours per week" determination? I can't seem to find much guidance on this. Thanks.

In computing the $100,000 MAGI limit to convert an IRA to a Roth IRA is the passive activity losses that I had included or not. For example I have wages of $105,000 and Capital Gains of $60,000. Total income of $165,000. I also have passive activity losses of $70,000. Is my MAGI for the conversion limit $95,000? Therefore, I can convert.

If governmental defined benefit pension plans are exempt under IRC 411, would you agree that they are not required to meet the requirements under 411(a)(8)-Normal Retirement Age- for IRS qualification purposes? If true, would you also agree that the local statutes would govern the minimum definition of NRA? I checked ADEA section 623,Prohibition of Age Discrimination, Section(i)to see if there may be any overriding issue there. I think that section allows for the NRA definition under IRC411, but I'm unclear as to whether or not it is required.

We have a DRO that requires payment by check made out to the alternate payee and her attorney, with both signatures required for payment. While the order otherwise meets the qualification requirements, we will issue the check payable to the alternate payee only. The attorney is giving me grief. Anyone have a quick citation for our position? Thanks.

If a Company's year end (6/30) is different than the 401K plan year end (12/31):

How do you determine the deduction limit? Compensation, deferrals, and match for what period?

What plan year contributions are deductible for what Company's year end? As of 6/30/00 - do you look at the 12/31/99 contribution or the "estimated" 12/31/00 contribution? Does the contribution have to paid by a certain time?

I have a 501©(3) organization with no HCE's. The organization would like to install a plan weighted in favor of its executive director. Since there are no owners or HCE's, rate grouping won't work. Instead, I'm considering a super integrated formula, which will accomplish their objectives. Can this be done? Is it the best design? With no HCE's, I assume discrimination testing is not done. Any comments? Thanks.

What sort of documentation is needed for a disabled dependent to be qualified for the DCAP if any? Are special after school programs for this individual qualified expenses? How about when there is no school and they have all-day programs? Are these qualified expenses for the Dependent Care Assistance Program? (the disabled dependent is 11 yrs. old if that makes a difference)

A 66 year old man has a regular IRA. He would like to transfer a particular stock out of his regular IRA into a Roth to shelter the potential gain from the stock. Since his and his wife's only income is from his IRA and Social Security, is he eligable to establish a Roth?

Is there any source that can provide information on the details of certain companies pension plans? For example, does the company ENRON have a cash balance plan with a lump sum option for payout?

I have a client that is converting its DB plan to a Cash Balance Plan and a couple of issues have come up and I cannot seem to find guidance - perhaps the answer is so simple that there is no guidance out there - please help if you can:

1) if a participant terminates employment with the employer, but is not going to commence benefits until a later date, can the employer require the employee to make a choice as to whether he is going to keep his benefits under the old DB plan or whether he will elect the cash balance benefits at the time of termination -- instead of allowing the employee to defer the decision until he actually decides to retire?

2) my client will have two categories - group A has a choice between the DB plan and the cash balance plan, group B has to choose the cash balance plan. If an employee transfers from group A to group B what what is the consequence, since now the employee is a member of a group who does not have the option of participating in the DB plan?

Forgive me if these questions seem elementary, but I am a new attorney just getting started in the employee benefits area. Thanks for your help.

A small closly held employer with a non-leveraged ESOP wants to terminate the plan before this year end, and begin distributions immediately. It is a calendar year plan. Must a new stock valuation be done, and if so, what date is the valuation for? The termination date?

Distributions of amounts less than $200 are not required to be eligible for direct rollover and are not subject to mandatory withholding. The language in the 402(f) notice does not apply to these situations. Therefore, shouldn't plan administrators be able to immediately make distributions to terminated participants with less than $200 vested account balances without providing the 402(f) notice and without waiting 30 days? It would seem a cover letter with the check explaining the 60 day rollover rule would suffice.

QDRO- Should the segregated funds due a QDRO recipient unpon retirement of the Plan Participant be reported on the SSA in the year in which the funds are segregated? I believe so, and intend to report them as such. Any comments?

Does a foreign governmental health plan qualify as "health insurance coverage" so that loss of such coverage qualifies an individual for a Special Enrollment Period?

To qualify for a Special Enrollment Period, Section 2590.701-6(a)(3) of the HIPAA regs state that the individual had to have been covered under another group health plan or had other insurance coverage at the time the coverage was previously declined.

It is clear that a foreign governmental health plan would not meet the definition of "group health plan" set forth in IRS Code Section 50000(B)(1).

Section 2590.701-2, Definitions, of the HIPAA regs defines "health insurance coverage" as benefits consisting of medical care (provided directly, through medical insurance, reimbursement, or otherwise) under any hospital or medical service policy or certificate, hospital or medical service plan contract, or HMO contract offered by a health insurance issuer.

On the surface, a foreign governmental health plan does not appear to qualify as "health insurance coverage," except perhaps as a medical service plan contract.

If you've had any experience with this issue, please advise!

Can anyone give me some insight into who may serve as custodian for a 403(B)(7) custodial account? Doesn't a bank typically serve as custodian? I'm dealing with a situation where an individual believes he is the custodian of the current mutual fund accounts. Is this permissible?

Employer maintains a 401(k) and an ESOP with identical eligibility requirements. Both plans provide for a discretionary match based on deferrals to the 401(k). Each year the Employer determines the dollar amount it will contribute for the plan year. Then that amount is split in halfbetween the two plans and allocated as a discretionary match based on deferrals to the 401(k). If a

participant has not deferred to the 401(k), he does not share in the contribution in either plan. A

participant in both plans will receive an identical amount in each plan.

Example: Participant defers $5,000 to 401(k). Employer decides to contribute 50% of the amount

deferred. The participant receives $1250 in the 401(k) and $1250 in the ESOP.

Q-1: May the ESOP allocate its matching contribution based on deferrals to another plan?

Q-2: Should the ACP test be run for the combined plans so that the numerator of this individuals’s

ratio is $2500, OR should there be two separate identical ACP tests using $1250 as the numerator

in his ratio?

Any thoughts will be appreciated.

I am looking for a definition of a Governmental Plan. How does one determine whether your Insurance Benefit programs qualify as a governmental plan.?

I work with a local Commission in Louisiana that is considered to be a component part of Louisanan State Government. This commission offers Health,Accidental Death and Life insurance benefits to its employees. The employees do pay a portion of these benefits through payroll deduction.

These insurance benefits are provided by National Insurance Carriers. Although during fiscal year 99 (11/01/98 - 10/31/99) the Commissions Health Insurance Program was Self Insured with an Insurance Agency providing administration of the Health Benefits.

I am trying to determine whether this commission is required to file form 5500 for these insurance benefits. The 5500 instructions indicate that Governmental Plans are exempted from reporting requirements. However there is no defintion of Governmental Plan in the instructions.

Any quidance reagrding this matter is be appreciated.

Thanks

Can anyone suggest any ideas for a small TPA looking for a service/web site/individual that makes salary/benefit comparisons for positions in our company to similiar positions in other companies in the southeast?