I am a visiting scholar to USA on J1 visa. My income this year is totally exempted from the tax according the a TAX Treaty with USA. Can I set up a roth IRA using my paycheck money which can be considered "non-taxable" or "after tax" money?

Thanks a lot

We are currently reviewing our benefits. We would like to offer some sort of educational program, but are finding tuition reimbursement programs to be of little help to the employees who can benefit the most from them. We were a member of an organization that assisted our employees in obtaining low-interest student loans. However, the paperwork was complicated, and employees did not take advantage of the program.

We are looking for a similar group to aid our employees in their educational pursuits. Has anyone had luck with such programs, and what group did you go through?

The plan year ended 05/31/1999 has a receivable PS contribution of $5,000. The $5000 is still receivable as of today, 2/22/00. The plan sponsor had a money crunch and wants to not make the receivable contribution. Can the plan sponsor choose to not making the receivable profit sharing contribution? Can the plan sponsor choose to not make the contribution if 1) the deduction has been taken or 2) statements have been passed out to the participants? If the deduction has been taken and/or statements have been passed out, what corrective steps need to be taken? What options does the plan sponsor have?

a plan sponsor reverts 75% of the plan's excess assets in february but does not make the transfer to the qualified replacement plan until much later. what kind of problems does he have?

John, an update to blaze of maybe a month ago corrected that frustrating printing problem you're referring to. Drove me crazy until they got the update completed. Anyway, you're problem will be solved as soon as you get the system up to date!

Yes, AARC, Choice and Advantage all have meanings to me. Do you also use any or all of these products?

Cathy

Look at DOL Opinion letter 97-03A. At least in the single employer context, DOL apparently takes the position that amending a plan may be a "mixed" funciton benefitting both plan participants and the plan sponsor. My recollection of this Opinion Letter is that if you have the same "decision maker" paying the plan's bills and the employer's bills, then there is a conflict and an "independent fiduciary" may be required to allocate expenses betweent he plan and the employer

Unless you have very large counsel bills, this makes paying the expenses out of the plan impractical.

The IRA can be set up for the minor ONLY if the minor has US income and pays US income taxes.

The individual in your example can establish an IRA for themself and name the minor as beneficiary, if that will take care of the need.

How FRUSTRATING!! I have only a 401k, never had an IRA so my question will probably seem very simple. However, I must say that I have looked at many websites and skimmed countless books at Barnes&Noble and NEVER saw this simple issue even mentioned: When I start my Roth IRA, what type of investment options will I have with that money?? Obviously the choices will vary depending on who I go with to manage the IRA but I mean generally, are stocks even an option? Would I be able to buy and sell stocks with my Roth like I do with my internet stock acct? And or mutual funds? In trying to find an answer to this simple question, I have learned volumes on conversions/withdraws/penalties, etc etc (and in the process also found this great website). That's nice but how about a little on the basics for crying out loud! MANY thanks to whoever is able to provide an answer to what should be much easier to learn!!

May a SIMPLE & traditional 401(k) be aggregated to meet minimum coverage requirements? If so, is there still no ADP/ACP testing for the SIMPLE? (For example, SIMPLE covers only HCEs, evryone else is covered by the 401(k)with no match.)

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I am working on a new plan which bases benefits only on service since the inception of the plan. Can I determine the Accrued Liability using service from dates of hire or would this be deemed an unreasonable allocation between past and future liabilities? Note: I plan on using the FIL funding method and this would establish my initial base, but the question could apply to any funding method with a base, as well as to Full Funding limits.

What is a reasonable range of the cost to set up a profit sharing plan including requesting a determination letter from the IRS? Do you have to request such a letter?

I apologize for reposting this question, but I am still struggling with this question. Can an employer provide a smaller contribution under its medical FSA for part-time employees? We have drafted several cafeteria plans with flexible spending accounts that provide for different levels of employer contributions depending on the number of hours the employee is regularly scheduled to work. Hours of research on my part suggest that this practice is discriminatory under both section 125 and 105(h). Has anyone considered this issue? Are we the only one drafting plans this way?

Any help would be greatly appreciated.

Kurt

An employer changes the investment options in their plan. 5 participants are are hit with a 3% surrender charge for money in a guaranteed account. Can the employer reimburse these accounts to make the participants "whole", by treating this as a plan expense?

January's consumer price index was 168.7

(168.7/145.7667) * 30000 = 34,720 so we are getting close to increasing the limit to 35,000.

We have 8 months to go, so it could be that 2001 will be 35,000! My estimates indicated we were at 34,410 for 2000, (which rounds down to 30,000), so we've made it halfway to the magic 35,000 in just 4 months.

the CPI is released middle of the month, so thats all until Mid-March before we can see where we stand.

myvettee,

There is no list of approved prescriptions.IRC section 213 governs what can be reimbursed through a flexible spending account for medical expenses. The IRS publishes a guide. It is called Publication 502. It states that "You can include in medical expenses amounts you pay for prescribed medicines and drugs. A prescribed drug is one that requires a prescription by a doctor for its use by an individual." Oral contraceptives are eligible because they are obtainable by prescription only. Many might argue that most women do not take them for a "medical reason", in fact the drug company is advertising that they clear up your complexion. Many drugs have multiple uses. If you stick to the IRS guidelins you wont have to play doctor as much.

If an employer has a discretionary match can he; 1. pre-fund his match as deferrals are made at different rates throughout the year?

2. if he plans on pre-funding the discretionary match as deferrals are made, does he have to state what the % will be at the beginning of the plan year?

It is my understanding that if an employer has a discretionary match, he can pre-fund as deferrals are made if he gives the matching formula before hand. To go along with that, it is also my understanding that once the ER starts to match during the year, the % can not be reduced only increased. The only way for an employer to have a true discretionary match is to wait until the end of the plan year. At that point he can state his match formula or state that a match will not be given. Am I correct in my thoughts? Thanks for the help.

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Bob Miller

The Company I am working for uses a TPA for their self funded health plan. The TPA has only offered a 12/12 paid contract during the 12 years, and this year we requested a 12/15 or some form of run-out protection, but they refused to offer it. We have looked around for alternatives and found an insurance co., not another TPA arrangement, that is offering a 12/27 contract. The fixed costs are very different, with the TPA's being the lowest of the two, however, the ins. co. also is providing an aggregate stop loss limit which makes their plan cap slightly less than the projected final cost of the TPA's plan.

The question is: how do we get out of this never ending circle the TPA has us in?

-JD

Racine, WI

My company recently purchased another company. The other company has a 401k plan. Does that plan have to be terminated or can it be merged with our plan? Either way what steps need to be taken?

We currenlty have less than a 50% contribution rate in our 401k plan. What changes can I made to increase participation?

[This message has been edited by Louis Gray (edited 02-21-2000).]

you can use a veba to remove liablities from a balance sheet