Sorry for the question, but I haven't been able to find any info on this topic. Situation: I have converted my Traditional IRA to Roth in 1999, and then recharactized it back to a Traditional IRA. Now, I think I might be under the MAGI of $100,000 for the year, and would like to convert back to a Roth. I was told if I'm over $100,000, I will be able to recharacterize back to an IRA next year. I'm afraid, however, that I've used my 1 recharactization.

I'm fairly sure I can convert to a Roth, but am uncertain whether I would be able to recharactize back to a traditional IRA if I'm over $100,000, thereby subjecting the conversion to penalties. Any help would be appreciated.

Control group consists of parent A with health plan A. Subsidiary B in control group spins off and would like to cancel its health plan B. The employees of B will get COBRA notice benefits for plan A (which is comparable to plan b). For those in Sub B already on COBRA before the spin off, may they switch into plan A for the remainder of the COBRA period? If so, may the premiums go up if plan A is more expensive?

Does anyone know if there is somewhere on-line that has the complete text(not the yearly summaries) for Internal Revenue Bulletins prior to 1996? In particular I'm looking for the 1994-3 bulletin that further defines the requirements for a "qualified transportation fringe" benefit in Notice 94-3. Thanks!

An individual receives a lump sum in 1995. The plan requires 50% female and 50% male PBGC mortality. In 4044 of regs the PBGC mortality table is the GAM83M table. This appears to be as a result of GATT. Do you think this is the referenced mortality table, even if the plan has not amended its lump sum provisions for GATT? ANy thoughts?

Can a target benefit plan continue contributions for a participant once the normal retirement age is reached? Also, can a target be amended to a MPPP?

In plain language, what is the purpose and scope of the multiple use test? What effect does the proposed repeal of this test have?

Plan owns non-employer real estate as investment. Realtors typically charge a 10% commission to sell such property. Should/may/must the trustee reduce the annual property appraisal by some amount to reflect anticipated selling expenses?? Or should trustee simply ask the appraiser to address expense of sale in appraisal? Would answers change if/when trustee makes decision to sell or actually lists property w/ realtor? Any regs or experiences greatly appreciated.

Does the transfer to a former spouse of a life insurance policy contained in a qualified retirement, pursuant to the terms of a QDRO, qualify as an exemption to the "transfer for value"? I am looking for a citation that specifically references the transfer of a life insurance policy pursuant to a QDRO.

Thanks.

A self-directed 401(k) plan limits fund transfers between funds to up to 25% of the participant's account balance. Only once during your time in the plan can you transfer an unlimited amount between funds.

The reason is the fund liquidity issue with the investment manager. Does this restriction comply with section 404©?

Our Company sponsors a STD Plan that permits an employee to return to work on a part time basis and maintain partial STD benefits. This portion of the Plan has never been used. Does anyone have any experience in this area?

How do you handle pay for exempt and non-exempt employees?

How do you "cut" the STD benefits to account for the part time work hours?

Any problems with FLSA?

Thanks for any help!!

Is it possible to take a disbursement from a 401(k) plan direct to yourself? I am willing to pay the IRS penalty. My company states that I am not eligible for loan or hardship distribution. I saw your discussions earlier regarding an event to trigger a distribution and further clarification would be beneficial.

Following on 8/16 exchange on this topic. Individual account plan has unitized employer stock investment option. Stock is publicly traded but float is very thin. Promptly implementing Plan purchases/sales in public market would create price volatility. Employer typically makes treasury stock available for purchase at price "not less favorable than price paid by a independent person." But employer will not now meet all Plan needs. Any experiences or suggestions on how plan trustee should proceed? Also concerned w/ securities issue of employer's actions indirectly manipulating stock price.

What happens if someone excedded the 10K ee deferral limit for 1998 and was not refunded by April 15. I realize this a disqualifing event.

1.What are the remedies?

2.Is the refund taxable in 1999 or does the part. have to file a 1998 amended tax return.

3.I read a little about SVP (Standardized VCR Program), where and how do this process begin?

4.Is the plan administrator reposible for taking the corrected action?

Any guidance is very much appreciated.

If a calendar year Money Purchase with a last day requirement is merged into a Profit Sharing plan 9/30/99, is there a required Money Purchase contribution or does the last day requirement allow for no money purchase contribution??

It's a good thing IRS issued notice 99-44 and removed all ambiguities - that is, except at least this one -

for plans which do specifically provide the 415(e) limits (w/o reference to the Code) and which, therefore, must be amended to allow the increase (in those cases where they wish to do so), do we have until the GUST remedial amendment period extension to do so?

That is, must we amend before 1/1/2000 (and before the GUST amendments), or can we wait until the last day of the 2000 plan year?

By implication, Q&A 7 suggest we can pay the higher benefits during the 2000 plan year, IF the plan is so amended by the end of that year.

Is my understanding correct?

A 401(k) plan is using current year ADP testing and has semi annual enrollment. If the plan is out of compliance, can the Plan Administrator lower the HCE's deferral percent at this time or any time to help produce a passing ADP test?

How do you find out about their speed, accuracy and reputation? Anyone with bad or good experiences please respond.

Should the church withhold social security and medicare on amounts contributed to a 403b plan?

A non-publicly traded company with an ESOP (Plan A) desires to purchase all of the shares held by Plan A so that Plan A no longer holds company stock and is basically a profit-sharing plan. Plan A will ultimately be merged into the company's 401(k) plan (Plan b), where the participants will be able to direct the investment of their accounts.

After the repurchase of the shares, must Plan A continue to provide that a participant has the right to demand that his benefit be distributed entirely in company stock? My first thought is that this right is a protected benefit under 411(d)(6) and must remain, but this just doesn't seem to be a logical requirement.

Treas. Reg. 1.411(d)-4 Q&A-2(d)(iv) indicates that an employer can eliminate an optional form of benefit by substituting cash distributions for distributions in stock if the stock ceases to be readily tradeable. It seems to me that if stock has never been readily tradeable, the employer ought to be able to do the same.

Any thoughts?

Let me first say that this is not a church plan. However, we are finding that the rules that apply to clergy are a bit different than the norm and it seems that this is the best place to pose a question.

We have an MPP and a 401(k) plan for a client. Most of the participants are clergy (there are also some secretaries). The participants are deferring and receiving MPP contributions based on their W-2 comp plus their housing allowance. It is the only pay that they are providing us (the TPA). When we told them they were failing ADP, they insisted that the housing allowance is not includible for testing. (Please note that one participant had W-2 comp of $45,000 and a housing allowance of $36,000, making the total compensation $81,000.)

Revenue Ruling 73-258 seems to back this up. However, it is very old and pre-dates 415.

Here are my questions: 1)Can the clergy defer and receive benefits on the housing allowance portion of their compensation? 2) Do we include the housing allowance in ADP testing? 3) Do we include the housing allowance in 415 and 404 testing?