I am pretty sure of this, but just to confirm, an individual participant may not, under 403(B)(8), rollover 403(B) assets into a 401(k)if their 501©(3)company now starts up a 401(k), correct? I think the assets must be maintained separately. Thanks for any comments.

I'm a sole proprietor and my objective is to contribute as much as possible to my retirement savings. As my income fluctuates annually, one year the $6000 max of the SIMPLE would do, but another year my income would exceed $46K and a SEP would work better.

Three questions:

1. Can I have both a SIMPLE and SEP IRA and depending on my income that year contribute to one of them?

2. Are there minimum annual contribution requirements for SIMPLE or SEP-IRA?

3. To throw in another IRA: can you have both a Roth-IRA and SIMPLE/SEP?

Thanks for your help!

My AGI for 1999 will put me in a situation of a limited contribution to a Roth for 1999. However, my AGI will be less than the limit to do a conversion of my non-deductible IRA to a roth. If I make a $2,000 contribution for 1999 to my non-deductible IRA, then convert the account to a Roth, in effect I made a $2000 contribution in 1999 to a Roth. Is this ok by the rules? Thanks, in advance with any help with this question.

Having permanently emigrated to the US, I wish to cancel my UK government pension(will not otherwise commence benefit payments until 2013) and place the accrued already funds in a Roth or ordinary IRA, while i continue to be employed by US State Government. Is this possible.

Situation:

Ira owner and spouse recalculate ages each year for minimum distribution requirement. Both 80 years old.

1) IRA owner dies first. Spouse rolls Ira into her name. Can she name a new beneficiary (son) and use the combined ages to calculate distribution? Must she continue to recalculate her age?

2) What if spouse dies first? Is the distribution continued using just the IRA owners recalculated life or does it continue on the joint life calculation? Can IRA owner name new beneficiary and incorporate the younger persons age in calculating distribtuions? (no more than 10 years apart).

What happens when IRA owner is the last to die? Does non-spouse beneficiary have to take all out by Dec. 31 of year following year of death? Or is there any way the beneficiary can continue distribtuions using his own life expectancy?

Thanks for any help.

Can a plan participant pay for his/her spouses insurance premium from his/her FSA if the spouse does not have a Cafeteria Plan offered by his/her employer?

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We are preparing a 5310 filing for a multiple employer plan. The form instructions do not clearly set forth directions for how to complete such a filing for multiple employers. Have called Cincinnati office of IRS and they have not been able to answer us (and subsequently faxed our questions in writing but still no response). Has anybody done such a filing? We think we will probably try submitting one application with combined data, and one user fee.

I have heard a rumor that someone out there is selling the idea that if a 401(k) plan sponsor changes the plan year end to December 30, the first year this change is made, the sponsor can deduct employee deferrals for the year end and for the new plan year the begins December 31 for the calendar year ending December 31. I have no idea how this could work. How could anyone possibly know what will be deferred by the employees next year? I would not even ask except my clients are being approached with this idea and are being told that the methodology used in a secret that will be revealed if the client signs up with the provider for the service.

An employer wishes to allow a 401(k) plan participant access to their money. The participant has reached the Normal Retirement Age of 55 under the plan, but is not yet 59 1/2. The adoption agreement and prototype do not seem to allow for choosing to grant in-service distributions from any source prior to 59 1/2.

Our thoughts have been:

1) Be sure the participant is terminated and then wait to rehire the participant until after the check is cut. Is it necessary to wait until the check is cut before the rehire?

2) Amend the plan to allow for in-service distributions prior to 59 1/2.

Are we correct that this could only be done for non-elective contribution sources?

Would the amendment make the plan an individually-designed plan?

Any suggestions as to the best course of action for the employer? Thanks.

Does anyone out there have a list or can you lead me in the direction of where I might find a listing of eligible prescriptions that would apply towards the flexible 125K spending accounts? I understand that not all prescriptions are eligible even though they are prescribed by a physician. Thanks for your help in advance.

When a company has a lay off, how do others of you out there handle the claims for medical reimb? Do you allow claims for expenses while they are laid off to be reimbursed? Same with leave of absence?

HOW DO YOU CORRECT EXCESS CONTRIBUTIONS TO A SIMPLE IRA?

What are the rules that apply to a cafeteria plan where the employer contributes a set amount of money which the employees can use toward employer sponsored benefits? Does it operate differently than a regular 125 plan? Are there special administrative issues? How does it affect the employer, tax wise? I don't know anything about this issue, so all help will be appreciated! Thanks!

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Liz

Can a new enrollee in an insured health plan claim coverage at VA facilities as creditable coverage? Enrollee is not retired military and has used facilities because he had no other coverage. VA was absolutely no help in this matter.

A type of DB plan has distribution options in the form of lump sum, annuity, and deferred annuity. Must plan offer same distribution options to spouse under survivor annuity rules?

An Employer has a profit sharing plan. Fiscal year and plan year end 9/30.

Employer started paying investment management fees out of plan assets about 2 years ago.

For the 98/99 Plan year, the employer by mistake paid the fees from the company.

Now the employer wants to know if they can be reimbursed for the fees at this time.

The 9/30/99 statements are done.

If we redo the statements and reflect the fee in the g/l, are we okay?

Can we include the fee in the 99/2000 g/l?

Does it matter which year it's incurred and expensed in?

Or is this an issue because the terminated employees will not share the fee if they are paid out?

Is it a facts & circumstances issue?

Thanks

Dlm

An individual has been running a business as a sole prop for several years (John Smith, A Sole Proprietorship), and in November 1999, converts it to an LLC (XYZ, LLC), using a tax free asset conversion.

He wants to establish a pension plan effective 1/1/99. (The tax years of the business and LLC are both 12/31).

The plan is being established with both entities (John Smith, A Sole Proprietorship and XYZ, LLC) being defined as "employers"

For 1999, the sole prop will take most of the deduction since most of the earnings was run through the sole prop.

However, by the time the majority of the contribution is made (in early 2000), the sole prop will cease to exist and its assets will have been transferred to the LLC.

Can the LLC make the contribution in early 2000, and have the sole prop take the deduction for it?

Am I worrying too much for nothing? Is there a real issue? What other ideas or issues are there?

Thanks.

Research and studies have concluded that the number one concern of employees is their financial well being and their present financial situation. These studies have shown that between 15 and 50 percent ( depending upon the company ) of employees are experiencing stress from poor financial behaviors to the extent that it negatively impacts their productivity and therefore the corporate bottom line. My firm is putting forward a program to the corp community that addresses this issue. What is presently being done by the corporate community to address this issue and how many companies are now active in this process.

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David Abelson

When drafting an ESOP why would I need to include a definition for Highly Compensated Employee? I can think of no reason.

Thanks.

Is an eligible 457 plan required to file a 5500 annual report? Is an ineligible 457 Plan required to file a 5500 nnual report? I ask because now that a 457 plan is required to have a trust fund it qualifies as funded deferred compensation under Code SEction 6058 and might have to file a 5500 annual report.

[This message has been edited by Dave Baker (edited 11-15-1999).]