If you have a 2 person LLC and only 1 member is actively working in the LLC, can you make a SEP contribution to the active member only?

I am looking for information concerning the

Employers Legal Requirements for sending funds taken out of a paycheck into the Investment Company. I know of an employer who tends to hold onto the money witheld from employees for a long period of time.

I have tried to find this information on the internet but I have not had any luck. A link on the internet would be very nice

Thank you in advance.

If a plan has more liberal eligibility requirements than 1 year/age 21, what other requirements must be met so that ADP/ACP testing can be performed excluding those that have not yet met 1 year/age 21 statutory requirements? I have read the regs and it mentions passing 410(B) taking into account only those that have not met statutory age and service but if only NHCE's have not met 1 year and age 21, won't I pass that separate 410(B) test automatically? Any guidance?

Any problems with offsetting a discretionary contribution (salary ratio, age weighed, tiered, whatever) by a 3% nonelective, such that all participants get at least 3%, but younger employees might get only 3%.

This would be in lieu of an A + B approach.

Obviously this would be subject to the general test, and the money types would be separately tracked for vesting, payment options, etc. I wonder about benefits, rights, and features, for example as a potential problem, in the case where the discretionary portion is available in-service. Thoughts?

In our State, kindergarten is not mandatory. However, the public schools have kindergarten classes and most people send their children to kindergarten. If an employee sends his/her child to private kindergarten, is that considered an eligible expense for dependent care flexible spending accounts? Note: IRS publication 503 states: "Schooling. You can count the total cost of sending your child to school if both of the following are true: 1) Your child is in a grade level below the first grade. 2) The amount you pay for schooling is incident to and cannot be separated from the cost of care."

Our private kindergartens generally do not separate the cost of "care" when billing the parents.

I need to find some vendors who provide retirement benefit analysis software for state, city and school employees for each state.

Any comments on adapting a self-funded medical expense reimbursement plan (Code 105(h)) to permit reimbursement of retiree medigap insurance premiums, only (not medical expenses themselves)? If you are aware of any other documentation options please comment.

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Section 414(u) of the Code requires a plan to

"make up" pension contributions missed during a reemployed veteran's military service.

I have a government employer who has a social security replacement plan (a money purchase pension in lieu of the social security system ).

Would 414(u) apply to this type of plan?

Thinking of possible conversion but not sure what I would gain as I am only 44.

My company has a 401(k) profit sharing plan in which employees may contribute up to 15% of salary with the employer matching $ .50 of $1 up to 4% of contributions. They have 7 investment options with a banking institute as the investment manager. While I have experience in other benefit areas I do not have experience in this new duty as coordinator of the plan for the company. While I research this area what are good questions to pose to the investment manager regarding the plan and the company's desire to increase the options? Also, what are best resources for 401(k) administration?

When my wife quit working in 1998, we moved her approx $3,000 401(k) over to a Roth IRA at a brokerage (no income or other issues that would prohibit the Roth election). In early 1999, prior to filing our federal return, I requested this be unconverted to a traditional IRA, and consequently did not report any income associated with the Roth account. It recently came to my attention that the brokerage never performed the unconversion. In looking at this website today, I noted the 12/31/99 deadline for modifying 1998 transactions, which makes me think it is too late for me to send a second request to the brokerage to uncovert the Roth back to a traditional. If it is in fact too late to unconvert, do I recognize all income associated with the 401(k) to Roth conversion in 1999, and if so, how do I go about this since it is unlikely I will receive a 1099?

Thanks,

ESH

I opened a Roth IRA account in late 1998 with $2000. In Jan. 1999, I make another

deposit to the same account for my 1999 contributions. However when the broker send

me the form 5498 for 1998, I noticed that

on my roth IRA contributions, it states $4,000. It gives me the impression that they

count the 2nd deposit also as 1998 contributions. Am I in the trouble of over contributed for 1998?

I did notice that, on the back of form

5498, it states it's the contributions you made in 1998 and through April 15, 1999. And

when I make the 2nd deposit, I did state it's

for tax year 1999.

[This message has been edited by fengchen (edited 01-02-2000).]

We changed claim administrators for our medical and dental plan recently. We are looking to handle run-off claims internally, rather than use our former TPA. Your comments and recommendations will be greatly appreciated.

We changed claims administrators recently, the new adminsitrator will not be handling COBRA and HIPAA for us. I am now handling COBRA internally and current have 50 active participants. I anticpipate having 10 to 20 Qualifyung events each month. What are you doing? Are you aware of an efficient comprehensive software package that is affordable?

Thanks!

We have extablished a Top Hat Plan for Highly Compensated Employees (current $85,000). Earnings on participants contributions are mirrored from the qualified 401(k) Plan. The Top Hat Plan covers less than 5o employees out of over 3,000 employees. Is anyone out there maintaining a similar unfunded (compnay retains plan assets)plan?

We recently consolidated two 401(k) Plans into one Plan. Previously we had separate recordkeepers, trustees, and investment houses. Now we have one company fulfilling all three roles. We also implemented a blackout period (no plan transactions are permitted). Many former plan participants have complained because they have not been able to withdraw their funds. Any comments would be appreciated.

I have seen conflicting information on whether or not the tax due on distributions that are Roth Conversion must be paid in estimated payments or whether the IRS gives an exception for Roth Conversion taxes and allows them to be paid at the April tax deadline without penalty.

For 1999 I have already paid estimated tax of more than my 1998 tax so I think I'm covered anyhow for 1999 - usless someone sees my as still having a problem - let me know.

And it would still be nice to know for the future if there is a definitive IRS position that excepts Roth Conversion tax liabilities from the estimated tax requirement and allows them to be delayed until 'tax time'.

My AGI won't allow me to convert again in 2000 but I plan to be able to do a substantial conversion again in 2001.

Thanks, genea99@usa.net

I converted my regular IRA to a Roth IRA earlier in 1999. My wife and I are both employed, both contributing to retirement plans, filing jointly. I thought our AGI would be under $100,000. Now it appears we may exceed this by approx. $ 5,000. I have a very small stake in an S-Corp. and will not know my income from that until late Feb. (I have included my estimate in the above AGI). It is now Y2K. Is it too late to convert back. If I pay a 10% penalty, do I have to remove the funds from my Roth? Can I still convert back? I do not think the S-Corp can defer my income. Any comments?

Is it possible to contribute to both a traditional and roth ira in the same tax year? If so is the traditional ira still deductible?

Thanks

David

In a multiemployer 401(k) plan of around 40 employers, some of the smaller employers include children of the owners in the CBU. These children participate in the plan. The businesses affected are among the smallest in the plan (say 5 or fewer employees). Is there any argument to be made that the children should not be considered owners and thus highly compensated for ADP testing purposes? I am thinking of the rule that states for general purposes of determining whether an employee in CBA 401(k) plan is an HCE you look at the total plan. Could I argue that mom and pop own less than 5% of the equity of the group taken as a whole (which they certainly do)? Is there another avenue I am missing?

[This message has been edited by Stephen Magowan (edited 12-31-1999).]