Takeover client has apparently failed to file IRS Form 5500-EZ for several years and is uncertain how to approach the IRS. Has anyone had recent experience in this area, and is the IRS likely to waive the penalties upon reasonable cause? Thanks very much for all input.

Has anyone worked with the rules known as California COBRA (or Cal-COBRA)?

California has "state COBRA" rules that are unique. In addition to providing employees with continuation coverage from employer health plans that are not subject to ERISA, they also provide for continuation coverage from employer plans that ARE subject to ERISA, after the federal COBRA coverage for a person has expired. These rules are in Section 1373.621 of the California Health and Safety Code.

The quick analysis of these Cal-COBRA rules would seem to be that they are preempted by ERISA, to the extent that they impose added benefits or administrative requirements upon an employer or an employer's ERISA plan. But I can find no authority on this.

Does anyone have any thoughts on:

1. whether Cal-COBRA is preempted by ERISA?

2. whether Cal-COBRA applies to a self-funded health plan?

3. whether any sanctions have been imposed under Cal-COBRA?

4. whether anyone actually attempts to follow the Cal-COBRA rules?

5. where there is a resource/authority explaining these rules?

This year I have encountered a number of 402(g) violations under $40.00. Is there any de minimis rule for small distribution amounts? This is especially troublesome for amounts under $10.00. Sometimes there are amounts under $1.00. Has anybody established a threshold for their clients? If so, should these small amounts be removed from the participant accounts? Could they be applied to expenses or used to reduce future contributions? Another twist, if a check charge is accessed for this transaction (say $40.00) could that be used as the threshold and then the money could be absorbed as an expense.

Departing employee is to receive $250,000 in severance pay, to be paid over five years.

Because the severance pay is based on past service, and the money is nonforfeitable, wouldn't the entire $250,000 be includible in his gross compensation in the year of termination?

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For the next 4-5 years, I will be in residency training which means that my AGI will definitely make me eligible for Roth IRA contribution. However, when I finish my residency, my income might exceed the maximum AGI set for Roth IRA. Is it worth it to contribute for a few years knowing that I might not be eligible after 4-5 years?

Thank you for your reponses.

If one or more 1099's are corrected due to incorrect amounts reported for the distribution, should the 1096 that accompanies the corrected 1099's show the number of returns as just those that were corrected, or should it be the total of all 1099's that were reported that year. Also should line 5, that asks the total amount reported with this Form 1096, include only the corrected 1099's or all 1099's for the year. The IRS instructions on corrections does not address this.

Who gets the money when an IRA beneficiary designation conflicts with his Will which says that someone else should get money?

In the case where an IRA beneficiary designation conflicts with the decedants Will, what controls, or who gets the money? I tnink it is the IRA beneficiary but I am not sure.

A plan sponsor currently has a DB plan. The sponsor would like to continue the DB plan but freeze participation, so all current participants would continue to accrue benefits, but anyone not currently a participant would never become a participant in the DB plan. On the date of closing participation, the sponsor would like to start a new 401(k) plan that would be open only to employees who were not participants in the DB plan. Does anyone see this possibly working? It seems like it would be difficult to satisfy 401(a)(26), 410(B), and 401(a)(4). Are there any other issues/problems that should be considered? Anyone out there think this is viable?

I want to "play" with my Roth money and was considering moving it to an online trading account.

Am I correct in believing that this account, despite heavy trading activity, is completely free of taxes?

Say I get lucky and my Roth portfolio doubles - this growth is tax-free?

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www.ToddWebb.com

I converted my IRA to a Roth in 1998. I found out on Nov.29th, 1999 that I may not be eligible. Thirty days (with holidays) wasn't enough time to figure out where my tax accountant went wrong, or if I had possibly missed any deductions to lower my magi and bring me back down under the limit. My accountant didn't realize that the limit was based on the magi and that's why I thought I could convert in the first place.

So now what do I do? I missed the Dec.31,1999 extension. Can I ask for a further extension because I didn't have enought time to do proper research? I really had no idea that I might not be eligible until I got that letter. Should I go ahead and recharacterize and ammend my 1988 statement anyway? If recharacterizing is like the transaction never took place in the first place shouldn't I be able to recharacterize now.? Is there certain wording in the ammendment of my return that will help my case?

Chris

I would like to find out if anyone knows a way to force my former employer to settle my vested pension benefit in a lump sum cash payment. I am 41 years old, have a vested pension with Southwestern Bell Telephone after 18 years of service that I can start drawing on only at age 65. I would like a cash payment option so that I may take control of my pension and invest as I choose.

My daughter is in her first year of public school teaching and needs some general advice regarding the pros and cons of contributing to a 403B vs a Roth IRA. (She can afford only $100 a month to start.)

I'd appreciate any feedback that could be offered or referrals to relevant web sites that may have additional information.

Thanks.

DB Plan of Co. A wants to invest in unrelated real estate partnership (Co. b). Investment rules presumably subject to ERISA 407 and 408 rules? Instead of cash in return, Co. B some real estate of Co. A's subsidiary. Any issues here?

Does anyone know if a Roth IRA can invest in the startup funding for a company. The idea would be that a check is cut from the discount stockbroker account to the startup company in the name of the Roth IRA. The stock certificate would be in the name of the Roth IRA. Post IPO the stock would be deposited back into the Roth IRA account.

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Richard

Fri May 26 - Sat May 27, Memphis,Tennessee

8:30 Registration

9:00 Business Meeting

9:45 Demonstration of FDP Client Management and Proposal System (These systems are going to be adapted for Quantech)

11:45 Lunch

1:15 Quantech tips, etc. After 10 years on Pentabs and Quantech I've got plenty to share / demonstrate, etc ( by Tom Poje)

....

6:00 dinner at Peabody Hotel

Saturday 8:30 - 10 Breakfast, roundtable discussion, Quantech enhancements

afternoon (optional) Graceland tour

contact Maggie Heffernan for more details

(770) 641-1429

e-mail mheffernan@afg-online.com

What are some of the main issues to be concerned about in determining whether to take a lump sum payout of LTD benefits?

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What steps need to be taken if a terminated employee receives more than his/her vested portion of the account balance?

What are some of the main issues to be concerned about in determining whether to take a lump sum payout of LTD benefits?

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I am 31. I have a Roth with about 25k worth of stocks in it. I want to withdraw 3k from this account. What are the penalties if I do this and how do I do it?