Subject owner was born in 1933 and established KEOGH. In 1994 he terminated KEOGH and rolled assets into seggregated conduit IRA. He has not taken any distributions from IRA. Can he still use 10 year averaging if he takes entire balance of IRA?

I have an employee who worked for me part time for about a year. Then we hired him on a full time basis. What date do I use for his hire date?

I'm wondering what people are seeing from Humana for PPO plan increases. A client of 70 employees just received a TRIPLE DIGIT increase with no justification or backup.

Humana doesn't do business in Oregon so I'm not familiar with them.

I am trying to find out if there is a way my 73 year old mother could contribute towards a Roth IRA. She has a small pension, however she has no income from a job. Can the sale of or the profits from the sale of stock be considered income for this purpose?

One of my associates has heard of a 401(k) plan available on the net that any employer can participate in. He seemed to think it was some kind of omnibus plan that passed economies of scale to adopting employers. I had not heard of such and would welcome any additional information.

Generally a pension plan must provide "definitely determinable benefits" and contributions to a money purchase pension plan must be "fixed" without being geared to profits 1.401-1(B)1(i). On the other hand, contributions to a profit sharing plan only must have a "definite predetermined formula" 1.401-1(B)(1)(ii).

You have a predetermined formula, but I am not sure that you have a "fixed" contribution or definitely determinible benefits.

I would like to convert to my roth a portion of a trad. ira, which has ded. and non-ded. contributions. Since a portion will be taxable, can I make the conversion now (prior to 4/15/00) and include it on my 1999 tax return? Can't seem to find this issue addressed in the 8606 instructions. Thanks for any help.

john

I'm 39 years old with a $250K IRA of which I'd like to withdraw funds. It's earning a pretty good interest in the stock market. I've calculated my payout using the life expectancy method of 43.5 years, but how does one find out how to use the other 2 methods? Amortization and Annuity? Could you point me in the right direction?

In order to determine key employees, is the officer compensation threshhold prorated for a short plan year? I could not find anything anywhere.

Employer fails ADP test and the correction was to return excess contributions. There was match associated with the returned deferrals. Because matching contributions are immediately 100% vested, the plan document seems to assume there will never be any forfeitures and so is silent on what to do with forfeitures.

I believe the match associated with the returned deferrals has to be forfeited. What should be done with these forfeitures if the plan document truly is silent on the issue?

How do documents generally deal with this issue? (I've seen one that said what to do with forfeitures in this case was at the discretion of the Plan Administrator.)

I have a takeover DC plan with a plan year end of 12/31/99. The plan allows for deferrals, match and profit sharing. The plan has 12 partners and about 15 rank and file folks.

8 of the partners fund their deferral elections throughout the year against the monthly draws they take. These deferrals are remitted within the confines of the 30 day rule.

4 of the partners write personal checks to fund their annual deferral amount. These checks appear to have been cut anywhere between the first day of the plan year and March 15, 2000.

My question is two-fold:

1) Can partners write personal checks to fund their deferral elections without it being construed as an after-tax contribution?

2) If the answer to the above is yes, when must the funds be deposited in order to be deductible on the 12/31/99 K-1?

Will you all be using the new DOL VFC program for the problem of late deposits of employee deferrals. Is this now the only right method of correcting the problem? I understand the 5330 must still be filed. Is the 15% on the interest that must be deposited only? Thanks for any help!

A 401(k)/profit sharing plan of a sub-S made a distribution of $34,000 in March 1999 to NHCE at his "urgent" request with only verbal discussion of taxes & penalties by Trustee (intended as hardship?) but no paperwork at all either for loan (no provision in plan), in service distribution (no provision in plan), hardship (in plan), etc, money was just paid out. No taxes withheld, no reporting on 1099(yet!). We found the transaction last week when working on 12/31/99 val. Also, a normal retirement participant and termination of employment participant was processed without paparwork in 1999. Plan otherwise has been in complete compliance. In retrospect, if catagorized as a hardship, maximum was $18,000 (employee deferrals only). No attempts at repayment by payroll deduction, etc, in fact, participant continued to defer pre-tax, while employed under age 59 1/2. Plan assets $2,000,000. Most concerned about qualified status of plan, less concerned about impact to participant. Is this APRSC? VCR? Walk in CAP?

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

I recently received a letter from a previous employer stating that the 401(k) plan that I had participated in had, from 1/1/95 through 7/15/97, been administered as if the plan document provided for quarterly entry dates. In actuality the plan document provided for semi-annual entry dates.

I began participating on 10/1/96 (quarterly entry). Quarterly entry was expressly stated in the SPD that was provided to me. I terminated in 11/97 and opted to leave my money, which was in excess of $3,500, in the plan. On 10/22/99 I rolled all of my money into a Rollover IRA.

They are now telling me that a portion of the money that they distributed to me on 10/22/99 included ineligible salary deferrals plus earnings and do not qualify for tax-free rollover.

I don't believe that I should be punished for their inability to administer their own retirement plan?

I had made deferrals based on their guidance. Do I have a problem here?

Eligible employer sponsors a "bridge" plan that pays $400 per month to employees who terminate after age 55. Payments end at age 62, with the intent that payments are a bridge to Social Security benefits. Plan doesn't satisfy 2000-1 "severance pay plan criteria." If 457(f) applies, we have a tax problem because no substantial risk of forfeiture. Can this arrangement be treated as an eligible 457 plan? Has anyone seen this type of formula in an eligible plan? How do you calculate dollar limits under 457(B)(2)? Since there are no employee deferrals and no assets are set aside to pay benefits, is a 457(g) trust required?

Is there any SEC or DOL guidance on the timing of the processing of trades received in a daily valuation environment? Put another way, is it permissable for a daily val. recordkeeper to have blackout periods at the end of a quarter where they don't allow trading or have cutoffs at a time during the day prior to the market closing?

Is there any SEC or DOL guidance on processing mutual fund trades in a daily environment? The main issue I am concerned with is whether the daily recordkeeper can not process trades received say at 3:00 p.m. from the participant for various admininstrative reasons.

Plan allows participants to elect an immediate distribution of rollover account balance. Want to amend plan to allow distribution of rollover account only when there has been a distributable event (ie, termination of employment, retirement, etc.).

We are trying to move from one prototype plan to another. The current prototype allows immediate distributions of rollovers and the new prototype does not. I would think this is a cutback with respect to rollovers put in the plan prior to the effective date of the amendment. Any thoughts?

Are ministers who are eligible for the 107 exclusion for housing allowances (parsonage allowance) always treated as self-employed for self-employment tax purposes? Or could they be treated as employees subject to FICA?

I'm confused. It seems that the housing allowance is only available if the minister is performing religious functions, and that seems to make him or her self-employed (or at least subject to self-employment taxes). But I've also seen information that says that a minister can be an "employee." Is the idea that the minister can be an employee, but will nonetheless be treated as self-employed.

I have an unusual situation - a 403(B) plan defines compensation for purposes of contributions as FICA compensation. I have a minister who gets a housing allowance. My ultimate question is whether the housing allowance is included in compensation for purposes of the 403(B) plan.

i feel like i should open a roth because although i have sizable loans, i also have sizable investments that are being taxed. In fact, i have left over loan money borrowed at 6.5%. Should I put this money into a Roth with a proposed growth rate of 12%