1. The plan can't pay out immediately unless the order says to pay out immediately AND the plan itself states that it will pay out immediately if ordered by a qualified order.

If the plan allows immediate payout, you might point this out to the AP and suggest that he/she might want to get the order changed to provide that payment will be made immediately. Without this change in the order, I don't think you can pay out - you'd be violating the terms of the plan and the order.

2. On the after-tax contributions, again I think this is something that should be covered by the order - the order should say something like "take it all from the after-tax account to the extent available."

As plan administrator, you could say that the order was ambiguous because this issue is not addressed and that you won't consider the order qualified unless it is changed to address the issue. If this is a problem, I suppose you'd have to follow some sort of administrative practice - my suggestion would be to split it up eqaully between the parties.

3. So far as not setting up a separate account for the AP, that doesn't make sense to me - it's going to be a lot more of a hassle to the plan to keep track of the earnings for the AP's portion of the benefit if you don't separate - also you get into issues like the after-tax contributions - better to take care of those up front by splitting the account.

I have 14k in a regular IRA account which I would like to roll over into another fund family.

I understand from the new fund family that I must roll over the money into another regular IRA account to start and then if I wished could convert it to a Roth. Is this correct?

I cannot afford to pay taxes on the entire 14k to do a conversion, but can I convert only a portion of the 14k to a Roth IRA to lessen the tax hit?

Can I split my 14k into two different funds to start? Can I split the 14k to two different fund families or does it have to all go to one company (e.g. Vanguard or Janus)?

What is the type of taxes I would have to pay on a conversion? Is it 28% of the $ amount I convert since that is my tax bracket, plus 10% penalty for early withdrawal from the traditional IRA I would be taking it from?

I know this is a lot to ask, but if someone could help I'd be forever greatful for getting some correct info that makes sense to a new investor like myself. I am 30 and the Roth just seems like the way to go.

Thanks!!!

jmwskw

I need to obtain info on whether a roth ira is available to Canadian citizens working in the USA. This individual needs to monitor retirement account activity to insure a proper allocation is set aside in Canadian investments or there are tax implications. Any specific info on Canadian RRA(?) requirements?

What carriers, if any, will offer an employer a health plan for its retirees, which the cost of the plan is paid 100% by the retiree?

In a money purchase plan, an employer makes a quarterly contribution for eligible payroll. The plan has the last day of the plan year provision. The employer makes contributions through the termination date which are never allocated to the participant. What happens to those monies? Does most employers keep track themselves and reduce their next contribution? Do they appear on the plan's financials as over-contributions? Are they returned to the employer? Should these monies be included in the allocation of interest if left in the plan.

Also same questions for forfeitures that are used to reduce employer contributions.

Please give some examples of how these issues are being handled. Thanks.

Has anyone seen any statistics on the pass /fail ratio for the C-2(DC) test? or any of the other QPA tests?

A 501©(3) hospital is considering changing to a municipality for many reasons, UBIT being one. If the 501©(3) starts up a 401(k) plan, what happens to the plan if subsequently the hospital becomes part of a government agency? What are the potential pitfalls and options for the retirement plan.

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John A. Stoffel, CPA

Thank you to all those who helped me with the questions. I took the test today. It was a difficult test for me considering I work strictly with governmental plans. I feel like I was well prepared and could not have studied more. However, I am believe that because I do not work with most issues on a daily basis, it was a disadvantage. Some of the questions were more on a administrative level than a technical level. I can study for the technical stuff, but you have to do the administrative. Anyway . . we will see - you never know how everyone else did on the same day. Thanks again. Hopefully you can help me with the C-2(DB) in a couple of months.

Currently have a volume submitter PSP which is integrated with Soc. Sec. Want to amend PSP to allow for allocations based on classification of employee, e.g., Class A = participants who are physicians and shareholders, Class B = participants who are physicians and non-shareholders, Class C = participants who are neither physicians nor shareholders, ..... The percentage allocated among the participants in each class will be determined depending on cross-testing towards the end of the plan year. Is all that's necessary is to amend the allocation provisions of the PSP document before the end of the current plan year?????

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I started participation in a 403(B) plan in 1976. I no longer work for that employer, or for an employer eligible for a 403(B) plan. I recently tried to transfer my account to a custodian to continue to administer my investments in a different group of Mutual Funds. The carrier, TIAA/CREF has refused to release the funds for transfer, stating the plan does not allow it. I am fully vested in all of the account value. I am 52 years old, and not eligible for distribution until 55. Can TIAA/CREF hold my account hostage in this way?

I am writing an article on ESOPs and would like to use some quotes from someone who has established an ESOP in his/her company. Only a couple questions needed and I can email them to you. Please contact me ASAP (by 6/4.)

Spouse holding IRA has abandoned wife (4+ years). No beneficiary listed, no divorce, legal separation papers or QDRO. On 3/99 she received statement for the IRA at her home address. What are her options as abandoned spouse? If anything? My understanding is that he can't close or remove funds from the IRA without her signature. Am I out to lunch?

Is there a deadline to provide participants in a pension plan ( 401(k & MPPP) a statement of their account balance. PYE 9/30/98. I thought there was a 256? day requirement for SAR. Is there any day requirment for statemnts and what are the penalties for noncompliance?

Does anyone have any ideas on how to close out a terminated Money Purchase Pension Plan if there are lost participants who cannot be found by the search firms? What do you do with the residual assets?

How is your company reacting to the Microsoft case ruling on retroactive liability for employee stock purchase plans under company's benefit plan?

Ron

Contingent Employment Online

www.contingentlaw.com

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www.contingentlaw.com

The May 14 Microsoft case ruling provided the company's common law employees with the right to participate in the company's Employee Stock Option program. Already another group of temporary employees at Pacific Bell has filed a suit for retroactive benefits. Its this starting a trend?

Ron Wainrib

Contingent Employment Law On-Line

www.contingentlaw.com

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www.contingentlaw.com

I am looking for a turn key program for use with an independent contractor sales force. Can anyone point me in the right direction? You can email me at ebarkel@skyfi.com

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Ed Barkel

One of my employees signed up for Dependent Care Reimbursement Account effective 1/1/99 (beginning of plan year). He has just informed me that he thought he could use this money for medical expenses for his spouse, which he can clearly not. The problem arises because the employee does not have any dependents in a day care environment that he can get reimbursed for the money he has already contributed. Has anyone had this situation happen before and if so, how did you handle it? Our open enrollment paperwork goes into extensive detail about how the Reimbursement Accounts work, plus, the employees also receive a confirmation statement which clearly states the elections they have chosen for the year.

Has anyone had any experience with ordained persons participating as employees in a full cafeteria plan?

If they are considered "self-employed" in most situations, are they eligible to participate on a pre-tax basis?

Hi,

I have recently started investigating

retirement plans for our company and have found out there are quite a few options!

I would appreciate any info/links/advice on "How to Choose" the best retirement plan for our business.(i.e.,advantages/disadvantages) We are a family run small business,LLC taxed as partnership, 7 employees (4 partners, 3 employees).

Thanks for your help!