I made my 1999 contributions into Roth IRA during the summer and have bought and sold stock several times. Now I find out that I

will not be eligible for Roth Treatment because of AGI test...Are there multiple ways of calculating the income earned on excess contributions...are there sources of information..looked at IRS Site..read FOrm 5329 and Publication 590 but can't find answers...

An employee embezzles money from his/her employer. In a settlement, the embezzler agrees to sign over their vested 401k balance. (The proper paperwork for a distribution is being completed. The check will be written from the trust's checking account to the participant, who will sign their check back to the employer.) I know I'm fishing, but is there anyway not to withhold the 20% for taxes? Employee is under age 59-1/2.

May an employer reimburse fees back to the plan's participants (into the plan)? If yes, does this amount have to be reported and included as an annual addition?

We have recently merged with another corporation which has an FSA plan (Health care and dependent care). If we terminate their existing plan on the date of the merger (since they will be our employees on that date), what happens to the outstanding account balances (both positive and negative)? Also, I'm thinking that this plan termination would be considered a Q.E. enabling the employee to enroll in our FSA - is this correct? Any ideas how to make this a simpler process???

I have a client that has asked for current statistics on vesting schedule useage (preferences) in 401(k) plans. They are looking to change their vesting schedule and are concerned about employee personal relations. If they can give statistics on what is currently in the marketplace, they feel it will support whatever decision they make.

Do any of you out there have procedures for handling untimely COBRA notifications? Let's say you send out a late notice (e.g., you weren't notified the employee terminated for example until three months after the term date) and the employee calls and is upset because he/she must now pay for three months past COBRA premiums. Do you allow the employee to only pay prospectively? Do you pick up the three months or the time period that was untimely? If this has happened to you, I'd be interested in how you handled (not that this has ever happened to me - wink).

We did an amendment to freeze a 403(B) plan effective 12/31/98 and then established a 401(k) plan for the employees. It is our understanding we cannot terminate the 403(B). I am wondering now if the 403(B) monies should all be considered 100% vested, does anyone have an opionion? Also, aside from filing the 5500, should we be providing an annual statement to all the participants in the frozen 403B plan? They are receiving a statement from the insurance company that reflects gains etc. Please help. This is our only 403B plan and we are really in the dark with all the rules and regs. Thanks.

I am interested to find out how other organizations handle part-time employees' benefit contributions. Are part-time employees at the same cost sharing percentage as full-time or do they pay an increased percentage?

I have a 403(B) plan which I am fairly certain is not covered under Title I of ERISA, but, I understand, may still be covered under Title II. What does this mean for my plan? What tax code requirements will I still need to follow? And, since I have been filing 5500s in the past, can I just stop, or should I send the DOL an explanation?

Hi, I'm interested in finding out the popularity of Chiropractic Coverage especially in the Technology Industry. Can anyone tell me where I can get the information such as the percentage of company that carries Chiropractic coverage in their employee benefit plan, etc.

Thanks

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Ming Hoe

Did you see the link to the newspaper article on Gloria Moebes, the employee whose group health insurance was cancelled when she attained age 65? I think 42 USC 1395y(b)(1)(A)(i) would prohibit this practice by any employer with 20 or more employees. (I don't think this is mentioned in the article.) For a smaller employer, would there be an issue under the general principles of ADEA?

Any guidance on permitted beneficiaries for survivor annuities (subject to appropriate spousal waiver)? Trust ok. Entities like charities?

What is the status of changing the basis for 420 transfers from maintenance of cost to maintenance of benefit?

Client doctor has account balance in PSP. Doctor is also MAJ s/h, director of P.A. and is trustee on the PSP. Doc is looking at terminating the PSP. Doc has recently hit his RBD and has taken his first RMD. Doc wants to terminate PSP and rollover his account into IRA. Also, doc wants to name his kids as ben's of the rollover IRA. His spouse is currently ben of his plan account balance. His naming different ben's (e.g., his children) after his RBD seems to be O.K., but it appears that he will be stuck with having to use his spouse's life expectancy to figure future RMD's from the IRA. See Prop Reg §1.408-8, A-6, Q & A (second sentence); Prop Reg §1.401(a)(9)-1, G-2, Q & A, (B), and Prop Reg §1.401(a)(9)-1, E-5, © and (d). Any comments or suggestions.....Thanks

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help, trying to get what is my fair share without much coop from spouse. He has 3 pension plans that I don't understand. He works for the local township where we live and has a defined benefit plan fully funded by the employer. He says it has no cash value and if he leaves employer he longer is eligible to collect from this. He says it has no cash value and is not covered by ERISA. He also has 2 personal plans he pays into, one he calls a PEDC and the other an annuity. I don't know where to start. He refuses to talk about a post marital agreement unless I sign divorce papers and I cannot do this. I didn't want the divorce and cannot condone it. He can get a divorce anyway in two years with or without my signature. If it helps I am in the state of Pa. UAN5@aol.com

I have found myself in the middle of a messy ESOP where no allocations have been done for several years. The ESOP is leveraged but the note was paid off.

Does anyone know or can send or point me to good information on the basics of allocating an ESOP? It's been way too many years since I have looked at one of these.

Thanks.

I think the first place to check is the plan document. How does it define compensation for testing?

If the service crediting method of a plan is changed from elapsed time, which includes fractional years, to hours of service, which is whole years only, how are service accruals converted? For example, if a person has 2 years and 8 months, how much service would the person be credited with under the new method?

Would you assume an hours equivalency, for example 190 hours for each month, in determining service for the partial years?

I have 2 medecal groups, A & B. Both are LLP's with MD, PA's as partners. No partner is a partner of both. Another LLP exists, C, which handles all medical billings and collections for A & B, remitting each one their respective collections. A & B each own 50% of C. Except for billing and collecting, A & B are autonomous and unrelated to each other. One more exception though....C also holds the provider contracts for both A & B in it's name so physicians from A & B can participate in all contracts. All other resources for providing medical services to the public are provided by A & B including salaries, rent, management, etc. Question, is A, B & C a controlled group? If C provided only billing and collection services, I would say definitely no. However, I am not certain since C holds the contracts for the doctors.

Thanks for any help.

Have a client who owns 100% of a C Corp and 100% of an S Corp. One employee in the C, 90 ees in the S Corp, a restaurant.

Employee X, running the restaurant, gets 25% of profits through a handshake arrangement. Doesn't want stock because of capital gains?

I've found Code Section 1563(e)(1), pertaining to options.

If my guy gives this Employee X an option to buy 25% of the S Corp, I'm thinking I wouldn't have a controlled group.