I can only seem to find information on converting to a ROTH IRA. Is investing in a ROTH IRA the first step a 22 year old, new investor, should take? If so,

which avenue should I take to invest in, Banks? Brokerage Firms? or an individual Mutual Fund Family?

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Goodnews

Surviving wife is only 45 and has $100,000 in her IRA (all community property). Husband dies and his estate has interest in her IRA. Is his half of IRA valued at $50,000 on his estate tax return? Or, is it discounted: 1. at least 10% as any withdrawal is subject to the ten percent penalty excise tax; or 2.discounted even more, because wife doesn't have to pull it out for another 25 years. (who knows what will be in it then).

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Jenny E

When does a dependent become ineligible for qualifying expenses? Do the states have different laws regarding the age children must start school? Is tuition for preschool eligible? Is tuition for kindergarten? Is there a set rule for this plan?

What's the correct procedure regarding the 15% max for a self-employed individual when the tax returns for 97 and 98 are being amended and will result in less earned income? This client (with a 401K plan - deferral, no match, the remainder of the 15% is put in as a profit sharing cont. each year) put in the max for both years. He has three employees beside himself who also received a profit sharing contribution.

Is there a 10% penalty since the money wasn't taken out by 4/15/98 (for 97 tax return) and 4/15/99 (for 98 tax return)? Can we take money out of the other employees' accounts if the new allocation shows less or should it all be taken out of the owner's?

Any assistance or advice on the matter is much appreciated!

Two sole props each had their own plan. Sole Prop A had a 401k plan and Sole Prop B had a Profit Sharing Plan. In '98 they became partners and created a new plan sponsored by the partnership. All employees were paid from the partnership in '98, but employees of sole prop A continued to defer into sole prop A's 401k plan. This doesn't sound kosher to me. How is this corrected??

Looking for a complete HRIS system(HR, Benefit,payroll), wondering if someone is using one they love? (midsize company and up)

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RJ

rliegl@ldmtech.com

Individual M has a traditional IRA, a dormant sole proprietorship plan and a corporate plan (all plans have a 12/31 year end). M attains age 70-1/2 during 1999. M proposes to terminate the two qualified plans during 1999 and transfer the qualified funds to the IRA. Since M attains age 70-1/2 during 1999, it is my opinion that M must make the Required Minimum Distribution separately from each the Keogh and corporate plans, prior to rolling the balance of funds to the IRA.

Does anyone believe that M is entitled FIRST to transfer the qualified funds to the IRA and then take a single RMD from the IRA prior to April 1, 2000 (RBD).

Thank you for your comments.

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Individual M has a traditional IRA, a dormant sole proprietorship plan and a corporate plan (all plans have a 12/31 year end). M attains age 70-1/2 during 1999. M proposes to terminate the two qualified plans during 1999 and transfer the qualified funds to the IRA. Since M attains age 70-1/2 during 1999, it is my opinion that M must make the Required Minimum Distribution separately from each the Keogh and corporate plans, prior to rolling the balance of funds to the IRA.

Does anyone believe that M is entitled FIRST to transfer the qualified funds to the IRA and then take a single RMD from the IRA prior to April 1, 2000 (RBD).

Thank you for your comments.

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Are employees required to submit an original receipt in making a claim to a FSA account? I have been told that the IRS "implies" that original receipts from an independent third party be submitted. I have also been told that original receipts are not needed. If the employer is ultimately responsible for non-compliance, wouldn't it be prudent to require originals to minimize fraudulent or altered claims. I would like to be able to tell employees that this is an IRS requirement.

Is anyone in the Phila Metro area interested in a CEBS study group? I would like to join a group in progress or help start one.

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Jean K

We have a plan that has been terminated for over a year, all the assets have been distributed accept for one participant, who has about $14,000 coming. We have located this participant, but he refuses to return calls or the distribution paperwork we've sent him to indicate his decision on distribution. If multiple efforts have been made, could we cut a check, less the 20% withholding and pay him out, so that the plan termination could be finalized? A certified letter would go with this explaining the effort and his right to rollover the benefit to an IRA within 60 days of receipt.

I am looking for a definition of cash balance plans and and explanation of how they work. Also, the difference between cash-balance and other pension forms. Plus and minuses of cash-balance for employee/employer. Any other web sites where I can obtain info on this topic.

Am strongly considering using the Internet for education about a retirement plan, investment alternatives, and other plan information for a company with multiple locations throughout the state.

Am curious what your experiences ahve been with using the Internet as well as the type of software necessary to perform the functions listed above.

Your response is appreciated.

We have a client with multiple locations and are considering using the Quantech Internet access software to assist in education, enrollments, and communication participant balances.

I am curious how well the system works and what the good and bad points are for using this type of communication tool.

Thanks in advance for your response.

I have a question regarding USERRA and wondered if anyone could help me out:

An individual has been in service with the uniformed services for 6 years. The individual is entitled to reemployment under USERRA even though he has been in service for more than 5 years, because the additional time was time required to complete an initial period of obligated service. Section 4312©(1). According to Section 4318(a)(2)(B), this individual is entitled to the accrual of benefits for the period of service in the uniformed services.

My question is whether the individual is entitled to 6 years of service for computing the accrual of benefits or 5 years? I ask this question because 4312© in effect pares back any time spent in service over 5 years to just 5 years. My opinion was that the individual is entitled to only 5 years of accrual benefits because 4318(a)(2)(B) specifically provides the individual with accrual benefits for a PERIOD SERVED upon reemployment under the chapter. In order to be reemployed under the chapter, Section 4312 required the individual to have SERVED A PERIOD of 5 years or less , or if greater, 4312© acted to pare back the total time spent in service to exactly 5 years. "Period of service" under 4312© is now equal to 5 years. Is this the period of service 4318(a)(2)(B) alludes to?

I appreciate any comments or thoughts. Thanks!

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-SLT

Plan sponsor is giving one time choice to convert from DB to either a more portable pension equity plan (PEP) or an "enhanced" DB plan that has better early retirement subsidies. What considerations for transaction to take place? (204(h) notice? nondiscrimination testing?) Any good references for a checklist?

I've just received two separate reject letters from 5500EZ filing clients regarding a non-valid actuary enrollment number. In both cases I signed in April 1999(after receiving reenrollment confirmation in March) using the "99" prefix. Is anyone else getting these reject letters? I remember from past messages that the IRS was extending the validity of the "96" prefix through the end of April as they were late in sending out the confirmation letters, but I didn't expect that this would cause properly filed Sch Bs w/ the "99" prefix filed in April to be rejected. Any comments/suggestions (I've got a call into the IRS now).

Does anyone have suggestions of a trust company that is available to serve as directed trustee of a Roth-IRA that will invest in all of the original stock of a company founded by the Roth-IRA participant. The participant is prepared to deliver a law firm opinion that there is no prohibited transaction. The participant is willing to give the trust company any reasonable protection from liability for acting on the participant's instruction.

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Does anyone have the cite to a fairly recent article I recall seeing in a tax publication, comparing the pros & cons of having a corporate trustee, versus self-trusteed retirement plan?

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I am looking for information on flexible work options, ie job sharing - telecommuting - flextime - compressed work weeks