I've had a couple people tell me that a distribution fee can't be deducted from a participant's account. This is a minimal processing fee to cover the 1099 and other paperwork associated with the distribution. I've looked at 404© regs and looks to me like it would be OK. Anyone have any specific cites or rulings that would indicate otherwise?

Has anyone set up or heard anything regarding pension plans for volunteer firefighters? There is no salary, and the township wants to contribute an annual discretionary amount without the firefighter paying taxes on it? This is new to me. Any ideas?

(1) My wife, who is a resident (british) (non-US citizen) and I (a US citizen) am planning to open a joint-Roth IRA account for me and her? Is there any IRA caveats for resident aliens??

(2) Is there any advantages or disadvantages in having a joint or individual IRA account??? I noticed that some answers on the board indicated "No" but it appears to me that having the option to "violate" one account is better than not having any choice at all???? or am I not making any sense???

(3) Are there any hidden charges to promotions claiming no-fee IRA's??

(4) Can I trade my funds in an IRA account as if it is a brokerage account?? Trade in stocks??

(5) Should I be concerned with whom I open my IRA account with?? Seem like anyone with a well-known name would do??? or is there more homework to do than I realize??

(6) Given that retirement accounts are so important in one's life...it boggles my mind that the government has made this area into one of the most difficult to understand and to navigate especially with so many traps!!! Am I the only one who feels this way??

Thanks for any replies

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andrew

A proposal is on the table at our company, which essentially would work as follows:

For administrative convenience, the company would pay ALL expenses relating to our 401(k) plan, pension plan, and ESOP from the general assets of the company as these expenses became due. Shortly thereafter, the plan administrator would determine which of these expenses were properly allocable to the various plans. Subsequently, each plan would be required to reimburse the company for its respective expenses.

Assuming we overcame the fiduciary hurdle of determining which expenses are properly payable by the plan, does this proposal run afoul of the prohibited transaction rules?

Anyone seen a decent publication on the tax (or other) rules associated with domestic partners participating in cafeteria plans?

I have a question on a possible new 401K plan. A corporation (temp agency) has 16 permanent employees plus about 50 temp positions. The temps do normally work over 1,000 hours. If the owners of the corp (as the only HCE) elect out of the plan, can the temps be excluded? Point me in the right direction and I can do the research if this is feasible.

I am interested in proposing a pilot wellness program for our company. I've always had a hunch that this must be where the real healthcare cost savings lie. There are reams of anecdotal evidence to support the notion that wellness programs drastically reduce health care expenses (and increase employee productivity). Many companies now do the obligitory wellness thing (a cholesterol screening here, a blood pressure check-up there. . .), but no real follow-up or commitment to longitudinal success. But where are the examples of companies that have succesfully rolled out more intensive programs (and have been able to capture their success in dollars)? Can anybody point me to a solid body of evidence and/or best practices? Your input is greatly appreciated.

PLEASE TAKE A LOOK AT THE "RETIREMENT PLANS IN GENERAL" MESSAGE BOARD. THEN LOOK FOR THE TOPIC: "WHAT QUALIFIES A DISTRIBUTION FOR ROLLOVER TREATMENT?

IS THERE ANYONE OUT THERE THAT DISAGREES WITH THE DECISION REACHED BY THE SECOND CIRCUIT?

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1997 tax year I purchased a Nondeductable IRA and rolled it into a Roth in 1998. But I did not file an 8606. How do I fix this?

When calculating the Maximum yearly contribution limit, Adding Contributions to 401k's and a Roth IRA, the total is over 10,000. Do Roth IRA's count towards this limit or is it only for deferred income like a traditional IRA.

Fact situation: Employer has small group health plan for employees (@6 members). Employee is terminated and is treated by physician pursuant to group helth plan within the month terminated, after termination but with confirmation that insurance coverage in effect through end of month.

Two months later employeer retroactively cancels that former employee's coverage to before termination date. Treating physician now insists that employee pays the bill for the medical services rendered.

Who is liable:employer, health plan, physician and is ERISA applicable to this group health coverage and if so how? Former employee never received notice of cancellation but ceased using medical services after the month terminated as instructed.

Thank you very much.

Question: If there are four employers participating in a 401(k)plan, three are members of the same control group, does the fourth employer (who is not a member of the control group)need to file for a separate determination letter? See Reg. 1.413-2(a)(3)(iv).

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[This message has been edited by Wineman (edited 04-01-99).]

For purposes of determining the 415 limit for a self-employed person under the commonly controlled business rules, are net losses arising from active partnership SE losses netted against net income from such partnerships?

Example: Net loss - Ptrship A ($60,000)

Net Inc. - Ptrship B $100,000

For 415 purposes applied to the Ptrship B plan contribution, is this individual's compensation $100k or $40K?

See Private Letter Rulings 9850011 (September 10, 1998), 9717018 (January 22, 1997), 9603011 (October 18, 1995), 9242012 (July 20, 1992), 9231062 (May 7, 1992), 9109060 (December 6, 1990), and 9034048 (May 29, 1990).

Tax Analysts states that an IRS Field Service Advice Memorandum has been released on this, but I haven't seen it.

As to taxation, Treasury Regulation 1.61-21(B)(1) and (2) states that the fair market value of the fringe benefit, less the amount the employee pays for it and also less any amount excludable by the Code from gross income, is the taxable amount. What is not clear is whether the fringe benefit for this purpose is the coverage of all persons covered by the employee's policy or just the coverage of the domestic partner. The above IRS rulings are not clear, but seem to suggest that the fringe benefit is just the coverage of the domestic partner. This is consistent with the following example in Brazelton & Kaenzig, "Taxablility of Employer-Provided Benefits to Domestic Partners Depends on Domicile," 5 J. Tax. Employee Benefits 66, 67 (July/August 1997):

"Example. Ron and Steve are domestic partners. Ron's employer extends employee benefits to domestic partners at their marginal cost. Steve purchases a health insurance plan through Ron's employer for $120 per month, whereas he would pay $330 on the open market. Ron will have gross income of $210 ($330 FMV less $120 cost) each month attributable to the savings on the health insurance."

When I open an account with Mutual Fund A this year and then open an account with B next year, do these two accounts have different clocks? Meaning, with a qualified withdrawal, I can only get no penalty after five years for the first account and after six years for the second one (since I'm opening it next year)?

I hope that my question is clear. I can't seem to find a clearer way of asking it.

Thanks in advance.

sole prop. had a sep-ira(not irs model)which incorporated in year 1998.The corp. established a money purchase & profit sharing plan using the corp's EIN #. Can the sole owner & employee contribute to the corp's plan using both the w-2 wages & sched c income as "earned income". Is any amend. required? Furthermore, can the contribution of sched c be made by the due date of personal return?

Thanks, SLuskin. Your advice seems like a reasonable approach.

Some states tax Roth distributions. Is there a website or other resource which lists the states which currently tax such distributions? Does it make a difference where you opened the IRA (i.e. in one state which doesn't tax) or only where you reside when you ultimately withdraw the money (i.e. say if you retire in another state which would tax it).

I read that there are annual administration fees for the Roth IRA. Is there a ballpark range for these? Do the fees vary based on the type provider you choose (i.e. bank et al)?

I would like to open a Roth IRA looked at a large bank's website and on its Roth page in bold it had three notices:

NOT FDIC INSURED

NOT BANK GUARANTEED

MAY LOSE VALUE

I was quite surprised. It sounds as if there are no basic guarantees or safeguards. And how could a Roth IRA lose value?