I have a client who converted to a ROTH at end of 1999 to avoid further minimum distributions. However, when she did this the bank did not tell her she would be taxed on the conversion. Now she wants to undo the conversion. Can this be done prior to April 15? What are the reporting requirements?

Must a 457 plan for a governmental hospital terminate and distribute funds to participants when it is acquired by a tax-exempt entity and loses its governmental status or can the plan be frozen holding distributions until payable?

owner dies b/f RMD, bene wants distributions over his life, plan does not allow bene's wish. Can bene get wish by transferring to another plan?

[Reposted by Dave Baker as a separate topic, for "ak"]

The DOL's discussion on the new forms just issued speaks about "fair value vs. current value" reporting for insurance contracts on the, e.g., Sch. A. It says that fair value does not apply for investment contracts with insurance companies which are, in part, "fully benefit responsive" contracts held by defined contribution plans with assets of $100 million or less. Question: Where did they get the $100 million dollar threshhold? I don't know of any such limit in SOP 94-4 and am not aware of any such amendment to the SOP. Does anyone know the answer.

What is the plan year for your Cafeteria Plan?

Does anyone know of a good survey or other source of information that would provide insight as to the popularity of various match arrangements - such as whether a match (1) includes tiered rates, (2) includes different rates based on years of service, (3) includes different rates based on years of participation, (4) imposes a maximum dollar match, etc. I reviewed the surveys available by link on this website and was not sucessful in finding any survey that included these details.

Could someone please give me some guidance on when payments made to a participant on disability leave should count as income for plan purposes. Do factors like W-2 reportability, FICA funding and how the premiums are paid have any relevance?

Please advise.

Does anyone no of any good sources/articles to review regarding a "rolling" vesting schedule for a 457(f) plan designed to allow the participant to continue to defer his or her funds by continually electing a new period during which the funds will be subject to a subst'l risk of forfeiture and therefore not taxable? I have heard the IRS may not accept these types of rolling schedules.

It has been determined that an 3 part organization with a 401(k)is no longer part of a contorl group or ASG. Must the 401(k) be split into 3 plans or can the plans still be under one non-standardized plan document? It will still need to be aggreagated for 415 testing.

I have a defined contribution plan which issued a loan to a participant during 1999. The loan is not in default, but was errorneously reported on a 1999 1099-R with a "L" distribution code. My question goes to the correction of this problem. The IRS instructions indicate to prepare a corrected 1099-R with the correct money amounts - which would be zero. However, the instructions are silent as to whether or not the distribution code box should be left blank or if it should remain as orgininally marked ("L" in this case). Any information would be appreciated.

I am looking for sources to interview for 2 articles:

1. What will employee benefits look like 20 or so years from now and what national trends will help shape benefit plans?

2. More companies are beefing up their benefits for part-timers. Identify best practices---how to go about beefing up benefits, how to critique what you're already offering, etc.

Employee works for company A for five years. Company A has a six year vesting schedule. Employee leaves company A to go work for company B. Company B has same plan and same schedule. After the employee has worked for company B for a year, company B purchases company A. Company B offers company A employees retention of prior years of service for the purposes of the 401(k) plan vesting. Is this employee out of luck and back at one year of service or is company B required to recognize employee's five previous years at company A? Or is it up to the company to recognize her service at company A or not?

I am working with a company that is told that their current provider (bank 1) is a named fiduciary. They are looking at another provider who is a directed trustee (bank2). Bank 1 says that they provide a much greater service than Bank2. The plan sponsor picks fund choices. Is the plan sponsor relieved of fiduciary responsibility with Bank 1 being a named fiduciary? I do not see much difference in the services of bank 1 and bank 2 since the ER is still making the investment choices. Am I wrong?

Add. Info.: plan type 401k

Participant directed

Currently use bank 1 funds and a

few outside funds

Fund performance is a issue

I currently have a 403b mutual fund account with Fidelity Investments. Are there any companies (with reasonable fees) that I could do a 403b rollover into, that would permit me to invest in funds from multiple families in one account?

2 companies merged, both having 401(k) plans. One company dissolved and there are only 2 participants from that company still employed by the surviving company. I am trying to determine whether it is best to terminate the dissolved company's plan or to merge it with the surviving company's plan.

Any advice or direction? Thanks.

I know terminated employees with less than 500 hours of service may be excluded from the coverage test. I would like to know if there are other similar permitted exclusions which will still have the plan be design-based so that I don't have to go through the more advanced tests for coverage.

Can I file my 1999 income tax return now and make a contribution to a Roth IRA for 1999 by April 15, 2000.

Richard

We have a calendar year 1999 ESOP client where all the required loan payments were made on time through 12/31/99.

The client is asking if an addtional contribution can now be made for the 1999 Plan Year.

We have calculated the 415 and 404 limits for 1999 which exceed the contributions made during calendar year 1999 which were applied toward debt reduction. The ESOP loan documents allow addtional payments towards principal.

Can an contribution be made now and deducted and allocated for 1999? Would it be 100% applied towards principal reduction (assuming continuing loan payments are up to date)? How would the additional payment affect the future loan payments and release schedule?

thanks for your help.

If a 501©(3) starts a 401K plan, and leaves its 403B ERISA assets where they are because of back-end surrender charges, will they have to do separate 5500's?

If an employee elects out of the plan, can he still contribute to a traditional IRA.

There seems to be a lot of employers who mark the Pension Box on the W-2 and claim they are right. I thought Notice 87-16 covered this to prove they are wrong. Any comments??

Thanks Milton

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