The timing is right to say thank you and more thanks to all of those who have come to my aid and many other's during the past few months. No doubt this has been a learning experience for all of us! I for one do not know what I would have done without you. Treat yourself to something nice on April 15th and tell your friends and relatives that it is a gift from your "Roth" clients. You deserve it!

I received a form 5498 from my broker

reporting the amount in the Educational

IRA for my son. Does anybody knows if I

have to report this amount to the IRS, and if so, on what form?

The infamous question. I don't seem to find a straight forward answer regarding mid-year change for Dependent Care. Employee states that her summer daycare provider has increased her rates. Also, summer daycamp has informed employee that daycamp will be closing the first week in August instead of August 31. Therfore, employee has to forfeit the extra dollars allotted for the remainder of the year. Any suggestions, employee anxious to hear.

Thanks for the e-mail opportunity. I couldn't live without it.

A person was required to take minimum distributions but did not do so. That same person paid the 50% excise tax. Must that person now withdraw the required amounts he should have previously taken out and begin RMD's based on the remaining account balance? Or can that person now calculate RMD on the full account?

Cites would be helpful.

I AM LOSING MY JOB THROUGH CUTS. I HAVE COMPANY STOCK AND MUTUAL FUNDS TOTALING OVER 50K. I AM 30 YEARS OLD AND WOULD LIKE TO ROLL OVER TO A ROTH. CAN I PAY THE TAX, THEN PUT THE DIFFERENCE IN THE ROTH OR HAVE TO PUT 50K IN ROTH AND PAY TAX OUT OF POCKET. DOES THE 2K LIMIT PER YEAR APPLY? IS ROTH THE WAY TO GO. THANX DD

How does one remove excess contributins from a 403(B) plan? Are earnings on the excess distributions removed from the plan? If earnings must be withdrawn, how are they calculated? Cites not required but would be helpful

Does somebody have a good source of information that I could go to to determine EXACTLY what should and shouldn't be included on line 6? (or if you have a good way to explain it, that would be helpful too!)

I have a hard time with the premium side of the reporting. I've been told that if the employer pays 100% of single coverage it is not included on line 6. However, if the employer pays 100% of single coverage and the employee pays the remaining premium for family coverage, the ENTIRE amount is included (even the employer paid single coverage). This means that an employer with single and married employees will have to go through and include nothing for single employees and everything for married employees? Please help!

We have an 8/1-8/1 plan year with a 7/1-7/15 annual enrollment period. We have a situation where employees want to be covered by their spouse during the spouse's open enrollment period (Oct, for example, for a 1/1 effective date), and then want to cancel coverage with us prior to open enrollment. Our interpretation of the regs is that this is not a valid status change and we have denied the changes. Has anyone else had this occur and have used a different interpretation?

Is anyone else having trouble with deciding what to ask (or even if I need to ask) 3rd party recordkeepers and investment funds about their compliance? DOL seems to require that inquiry.

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http://www.401kafe.com provides education and information to 401k participants. What's nice about it is the site is not part of any investment manager's site and is not "salesy" in its presentation.

I WENT ON DI IN JAN OF 98, FROM A LG. CO. I RECV'D MY 1ST CHECK FROM THEM IN APRIL,(4 WKS. OF SALARY CONTINUANCE)THE 4 CHECKS WERE IN MY ADMINISTRATOR'S DRAWER SINCE THE FIRST WEEK I WENT OUT. IN JUNE I RECV'D 20 WEEKS OF CHECKS. IN SEPTEMBER, I RECV'D A LETTER STATING THAT I AM NOT DISABLED, THEREFORE MY CLAIM IS CLOSED. I WROTE A LETTER A WEEK AFTER RECEIVING THEIRS AS I HAD A 60 DAY WINDOW TO REPLY. I HAVE A NERVE PALSY, DRIVING IS PAINFUL AND NOT VERY SAFE WHILE I AM IN THIS CONDITION. IN MID-NOV., I GOT A CALL FROM THE DI DEPT., A NURSE, NOT THE CASE MANAGER WHO WROTE ME THE DENIAL LETTER. I ASKED FOR AN ACKOWLEDGEMENT + A REPLY TO MY LETTER. THE CASE MANAGER STILL DID NOT CALL CONTACT ME AS THE NURSE PROMISED. I ASKED HER TO ALLOW ME AN IME AND I ASKED TO BE PRIVIED TO INFO. EXPLANING THE STANDARD PROCEDURES OF THEIR DEPT. SHE DID NOT RESPOND TO THAT REQUEST. SHE CALLED BACK IN 2 WKS. TO TELL ME THAT I HAVE AN IME ON 12/15/98. I DROVE TO THE IME, A 45 MIN. DRIVE, WHICH WAS OF NO CONCERN TO THE NURSE . I DID NOT THINK THAT I WOULD HEAR FROM THEM AGAIN. MY SUPERVISOR TOLD ME IN JAN. THAT HIS BOSS, STATED, IF SHE DOES NOT GET IT STRAIGHTENED OUT W/THE DI DEPARTMENT SHE WILL BE TERMINATED, IF SHE DOES NOT COME BACK TO WORK. I WORK FOR THE LARGEST INS./FINANCIAL CO. IN THE INDUSTRY. THE INSURER IS NOT A 3RD PARTY. I DID NOT FEEL WELL ENOUGH TO FUNCTION AT WORK, I RETURNED 1/28/99 , ANYWAY. 3 DAYS AFTER RETURNING TO WORK, I GOT A CALL FROM THE NURSE.SHE SAID THAT SHE IS GOING TO RELEASE THE BAL. OF MY STD BENEFITS AND SUGGEST TO THE LTD DEPT. TO PAY APPROVE MY CLAIM. THE END OF FEB. I WAS PAID, ALL IN ONE CHECK FOR 6 MOS. OF LTD. I TOLD THEM THAT I RETURNED TO WORK, I WAS PD. TO THE DAY PRIOR TO RETURNING TO WORK. I JUST SAW MY NEURO TODAY. HE THOUGHT I WOULD HAVE BEEEN BETTER BY NOW. I HAVE A NERVE PALSY, CORROBORATED BY 2 ORTHO SURGEONS AND THE IME DR. I SIMPLY CANNOT CONTINUE TO TRY WORKING RIGHT NOW. I DREAD DEALING WITH THE DI PEOPLE AGAIN. THEY WILL NOT SEND ME A BENEFIT CHECK ON A WKLY BASIS. BY RETURNING TO WORK AND DOING A TERIBLE JOB FOR 9 WKS., I HAVE RUINED MY TRACK RECORD. I HAVE NO ADVOCATE. I HAVE EVERY INS. LISC. EXCEPT AUTO+HOME. I KNOW THESE PEOPLE ARE NOT ONLY UNETHICAL BUT ACCORDING TO MY A+H LISC EXAM, THEY ARE NOT EVEN ADHERING TO THE LAW. I AM IN A VACUUM AND I CANNOT SEE WHO IS GOING TO ENFORCE THE LAW.

ANY COMMENTS? ADVICE?

1 MORE QUESTION> PER THE ADA, ONE NEEDS TO BE PERMENANTLY DISABLED TO BE PROTEECT BY THAT ACT. DOES THAT MEAN FROM 1/98 TO UNTIL I AM DECEASED?

I AM GLAD THAT I FOUND THIS PAGE. ANY INFO., I WILL BE SO GRATEFUL FOR.

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peabodyvmh

A qualified plan provides that employer contributions are made in accordance with a collective bargaining agreement ("CBA"). The CBA provides that only employees who work more than 1600 hours during a plan year will receive an allocation. I don't think this is permissable. 2530.204-2 dealing with partial years of participation applies only to defined benefit plans. Any thoughts? Thanks. Ed

If a governmental agency "picks up" employee contributions in a defined contribution plan under IRC 414(h)(2), I understand that the contributions are considered annual additions. Assuming the contributions "picked up" meet the criteria outlined in Rev. Rul. 81-35 and 81-36 to qualify as excludable from the employee's gross income in the current year, is any further testing necessary?

Recently was presented with a plan document that states that where a spouse does NOT provide consent, a lump sum will be paid when requested by a participant as follows: 50% of lump sum to Participant or Participant's designated beneficiary and 50% to Spouse. Note: this is lump sum and not and annuity. Is this permissable? My reading of J&S and consent rules in Code make me question this. Please help

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P in multi-employer money purchase pension plan retired in 1991 (when witholding was optional), took lump sum and rolled to IRA. P worked in 1997 and 1998 and retired again in 1998. Plan did

not let P elect between cash and trustee-to-trustee transfer. Instead, plan followed P's 1991 election, paid him 80% and witheld 20% in 1999. P wants plan to "undo" the payment and do a T-to-T transfer to his IRA. Is there a procedure for getting the 20% back from the IRS?

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An employer made a $100,000 contribution to a DB plan. Subsequently, the employer determined that the DB plan's normal cost was only $20,000. Can the employer withdraw excess as a mistake in fact if withdrawal occurs within one year of date of contribution. I don't think such a withdrawal is possible. Any thoughts. Thanks. Ed

I'm 64 I have an IRA that is made up of a Small Cap Stock. It's worth now is 4111.00. At one time it was worth almost 6000.00. I don't intend to cash this out, because I don't need the money as of now or maybe never. I can afford to pay the tax on this money if I decide to convert it to a ROTH IRA. Would it be to my advantage to do so and also my boys advantage? Mae

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Mae

Can an employee elect to have a surgical procedure (i.e. eye surgery in Canada-cheaper than the states) in a foreign country and claim that expense on their health care spending account? The expense is valid but Outside of the country is the question. Thanks!

My understanding is that APRSC cannot be used to return excess salary deferral contributions until after April 15th -- deadline in reg 1.401(g)-1. A client insists that Revenue Procedure 99-13 allows for APRSC to be used before April 15th AND that the distribution is taxes ONLY in 1999. Does anyone else have this understanding of APRSC?

I am processing a plan in which the trustee wants to accrue his fees on a quarterly basis, to be paid on an annual basis, for a plan that is using unit accounting. Does anyone know a way to accrue the fee in Quantech and have it reflected as such in the reports, especially the participant certificate? Quantech support has indicated to me that it is not possible.