One of our retired employees last year had taken his two distribution checks - one represented before-tax money the other check represented after-tax money - to his IRA provider which did not question why one check (before-tax) was made payable to the IRA FBO participant and the other check (after-tax) was made payable to the participant. The IRA provider deposited both checks into the participant's rollover (conduit) IRA. Now comes tax time for 1999 filings and this problem is brought to our attention. I have been attempting to find out what are the consequences of co-mingling two money sources within a rollover IRA. I have yet to come up with a firm answer to this dilemma. A sense of direction would be appreciated.

Can a company have different benefits to retired employees who retire prior to 65 than to those who retire after 65? Is there a section of ERISA that applies to this?

I have been blessed with the responsibility of drafting an education benefit plan. I would like it to include seminars and cont'd undergraduate ed. if job related. I am looking for info on what other small businesses are offering.

Any assistance would be appreciated.

Thanks.

An executive entered into an agreement that provided that he would receive 10 years of salary continuation payments. This is reflected on the Company's audited financial statements as a contingent liability. The Company and executive agree that the executive and spose will waive this benefit. Liability will come off the books. Upon executive's death, company will pay benefits to surviving spouse. Don't want these to be considered gifts, but company doesn't want obligation to require financial statement treatment. Are these benefits deductible? Or would company have to call these payments compensation to employee oor contractor to be able to deduct them. Thanks. Ed

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Does the separation from service during or after the calendar year in which you reach age 55 apply to 403(B)?

Box # 7 on a 1099-R (Distribution Code) should be coded a 1 (Early Distribution) for a hardship withdrawal... correct? Even if the hardship was distributed on account of the participant's disability, box #7 should NOT be coded a 3 (Disability). Can somebody please confirm this for me? Thanks!

A participant terminated employment on 9/15/99 and stopped making loan repayments. The loan Balance at date of termination was $13,400.00 Payments were being made bi-monthly prior to termination. Interest was reducing each payment and was $53.70 the last payment date. We want to get this person paid out and handle this correctly. Plan calls for Annual Valuation. Plan has calandar year plan year. I feel that we should handle as follows please provide futher or corrective guidence.

1) Charge $53.70 interest for each pay period missed againt participants account until paid out.

2) Issue a 1099R at time of payout (or end of year?)

3) Try to get this participant to take his distribution ASAP. What do we do if he doesn't.

4) I don't think loan is considered in default for 1999 Form 5500.

Please give guidence!

Are there any differences in the "deemed distribution" rules in the event of a default where a participant loan is secured by real property instead of an account balance? Would there still be a "deemed distribution" of the loan amount upon default but never a "loan offset" since the account would still include the defaulted mortgage?

can two working spouses create two separate $2000 roth ira's? if so is it too late to contribute for 1999

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guy pirolla

I would bet that the Quick & Reilly document has since been revised. At one time, it was thought that you couldn't combine contributions to a Roth IRA with Roth conversions, due to withdrawal restrictions. However, the Service has since issued guidance that addresses these issues, making it allowable to combine them.

Hope this helps.

What if my husband and I exceed the income amount ($150k-160k) within the next few years? Does that mean that we can no longer contribute to a roth IRA? Thanks to anyone who can shed some light to this.

Please help, Anyone know where I can find a listing of status changes (what the law considers)? I remember seeing somewhere, a while back that an "increase in premium" to the employee would constitute for a status change..? Sounds sort of odd - but I know I read that somewhere. Where could I find a listing of what the law regulates as a qualifying event for a status change in Health or Dental Insurance. Any help would be greatly appreciated.

Employer contributions to SEP IRAs may be made up until the employer's tax filing deadline, plus extensions. However, the IRS states that those contributions be reflected in box 7 of the 5498 for the year in which the contribution is received.

How are different IRA custodians reflecting those on participant statements? Which custodians reflect those as prior year and which reflect as current year (or no year indicated)?

I'd like to hear from anyone using this link what your experience has been with their service. I'm just curious to see how well they are handling the daily trading. I'd especially like to hear about those of you linked with them that are using Quantech.

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Carol J. Ringwald

Senior Vice President

Shawmut Consulting Assoc.

I have a situation were an IRA holder had died and the 2 beneficiaries are Charitable Remainder Trusts set up for his two sons.

The IRA holder was over 70 1/2 and already had taken his 2000 RMD. When the IRA is distributed, does the money have to be distributed to the Trusts directly and are the Trust issued a 1099R Tax form with their respective TIN numbers? Or does the money go to the beneficiaries of the Trust and the individuals are issued 1099 R's. Any help is greatly appreciated.

Sincerely, AJ Milano

How does the IRS collect the 10% excise tax for missing this deadline? Is it a flat 10% on the amount, or does it increase the longer you are late?

We have a client with a very similar situation as that described in a 1993 PLR and would like to contact the applicant. Is there a way to find out the identity?

The employer has a 401(k) safe harbor plan. The employer makes a discretionary profit sharing contribution allocated using an integrated formula. Question is this: Can the employer take the 3% safe harbor from the integrated discretionary contribution, as long as each participant is getting at least 3% or does the employer make a separate 3% contribution outside of the integrated allocation? My concern is that the total contribution (3% and integrated discretionary) would not have been allocated in accordance with the plan's integrated formula.

Am I correct in my understanding that a corrective distribution of employee salary deferrals to correct a 415 excess is not subject to the 10% excise tax? Need to confirm before the 15-month deadline for filing Form 5330 expires 03/31/00.

Thanks to any and all for your response!

Are any of you heading to the EA Meetings? Thought it may be nice to put some faces with the names. Any interest?