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?

I have the following ROTH questions (pardon me if some (or all) of them are pretty basic):

1. First, I want to verify if my wife and I can open a joint ROTH IRA account. It doesn't look like we can but I thought I'd ask anyway.

2. As I understand, I can open different ROTH IRA accounts with different companies (don't know the exact term), e.g. mutual fund families, as long as the total contribution does not exceed whatever limit is applicable to me. Right? If I open an account with one company, am I tied to them forever? Or is there some way I can "roll over" my money into another account that is not with the same company?

3. There is an upper limit to the contribution. Is there a lower limit? Once I open an account, must I contribute to that account yearly? Do I have the freedom to change the percentages of my contributions? e.g. this year, 50% to account A, 50% to account B, and then next year, only 25% for A and 75% for B.

Well, I guess that's about it for now. I hope that someone can take time out to answer my queries.

Thanks in advance.

What benefits advice are you giving your employees regarding the millennium bug?

Is anyone familiar with the procedures and options when a plan's group annuity provider is reorganized and "demutualized," with a resulting distribution to the plan of shares of stock in the reorganized entity (or cash equivalent)? Standard Insurance Company is currently going through this process.

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Employee participates in Health Spending Account. Employee currently on unpaid FMLA. Employee

pays (what would be her pretax withholding) with a physical check to keep up with her bi-wkly withholdings while out on FMLA. Are there any consequences in accepting her checks while she is out on leave. These checks are to replace what would be the pre-tax withholding. I would appreciate any comments or suggestions. Yvette

I am thinking of proposing the addition of a floating holiday. We are a manufacturer and I think it would be easier to get approved since there would be no "shut down" of operations. What types of problems have you encountered with floating holidays? Do you put restrictions on when the days can be taken? Do you allow pay out if none is taken? What other options are there?

Thanks for your input.

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This question is a top heavy question, but involves a super integrated plan. I have a Doctor group with one of the doctors not being a key employee. He is receiving more than a 3% contribution. Is he entitled to an additional 3% top heavy contribution?

We are a 200 + employee manufacturing firm looking to revise our absenteeism (sick days, vacation, holidays, etc.) policies. Any suggestions as far as Personal Time Off policies or sick time policies?

We are a 200+ employee manufacturing firm looking to implement HR vantage software in the near future. Any advice on forms or policies that would be adaptable to the software?

Unrelated rollovers are not included in the account balance for Top Heavy determination. However, should the earnings on the unrealted rollover that accrue in the receiving plan be included in the account balance for top heavy? For example, the unrelated rollover amount of 5,000.00 is deposited to the plan. The unrelated rollover earns $500.00 in the receiving plan. Should the $500.00 be included in the account balance for top heavy calculations? Any code sections that you know of would help. Thanks!

Is an Employer obligated to notify an Employee of conversion rights in the event he is terminated and the employer sponsors a group life insurance plan? Would this be covered by COBRA or by the terms of the contract? In other words, Is there a legal obligation to notify and permit a terminated employee to continue his life insurance... Please help

As of 4/1/99, enrolled actuaries must use their new EA numbers on any Schedule B they sign, but cannot use such number until they receive official notification from the Joint Board that their enrollment has been renewed.

I haven't received my new number yet and as far as I know, no other EA has received their number either.

Has anyone received their number or know of any extension on using the old numbers?

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A university allows its employees to accumulate up to 800 hours of sick time. At retirement the employees are paid the accumunlated sick time in cash and are taxed on this payment. Is there any way that the employees/retirees can use this accumulated sick time to pay for post retirement health insurance or pay eligible medical expenses without incurring a tax liability? My research indicates that this cannot be done through a cafeteria plan. Are There any other tax deferred vehicles that can be used to avoid immediate taxation of the accumulated sick time?

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Does anyone have experience trading with BHC Securities? Do they provide Trust Accounting Reports? Are you utilizing them for Daily Valuation?

Other general comments?

I am not happy with the Agent of the financial company that manages my company's 403 b plan. Do I have an option as an employee to choose a different financial company and still have the company match my contribution?

Or I do not have a choice.

Employer is a corporation, with a calendar year tax year. Employer sponsors a defined benefit pension plan, also on a calendar year.

Employer's tax filing deadline for 1997 is 3/15/98. Employer extends the deadline to 9/15/98. Employer makes required contribution to pension plan on 8/15/98. However, employer DOES NOT file corporate tax return until after 9/15/98 (oops!).

Is the employer's pension contribution deductible for 1997?

Related question: safe facts except that the employer has a profit sharing plan instead of a pension plan. Is the result different?

Please help! I'm having a hard time understanding where to put the conversion amounts on the tax forms

(8606/1040).

Ex. $10,000 non-ded converted to Roth

Ex. $10,000 trad IRA converted to Roth

and these conversions were done with the 4 year payment terms in mind.

Please help, need replies by April 7, 1999. The county hospital my mother has worked at for approx 17 yrs is being sold to a for profit organization. Her personnel dept has informed her that she has to "cash out" her 457 plan and pay taxes on the amount, then re-invest in another retirement account. She is currently 61 and 3/4 and plans to retire at 65. Here are her questions:

1. Does she have to cash out the Valic 457 plan or can she freeze it or rollover into another account?

2. Is there a time limit to rollover (if possible) into another account?

3. If rollover is possible, what investment agencies carry 457 accounts?

4. Can She voluntarily contribute into a frozen 457 account?

In replies please include any references to federal or state codes. Valic has been unable or refuses to answer questions or return phone calls concerning this situation.

thanks in advance

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Johnny

Has anyone not received a notice of sufficiancy from the PBGC in connection with a plan that proscribed the use of the 1963 Buck Motality table? In other words, is this still "reasonable" in 1999?l

Company A (a construction company) and Company B (a bank) were originally part of a controlled group. Company A is owned 100% by owner X and Company B is owned partially by owner X (formerly in excess of 80%, current status being researched, presumed to be less than 80%).

Each had their own 401(k) plans, which were originally drafted identically (subsequent amendments have changed that to some degree). Each had identical investment funds for individual participant direction - 5 mutual funds plus one "Bank Fund", which consisted of CD's and money market passbook savings accounts of Company B. The companies have since potentially (pending research) ceased to be a controlled group, but both still offer the "Bank Fund". IF the companies are no longer a controlled group, is the "Bank Fund" now a collective fund as it stands? What if they add Company B stock or obligations to the fund - now a collective? What if Company B stock or obligations were added to the fund while still part of a controlled group and then they ceased to be a controlled group? Given the ownership structure, is/was it feasible to put Company B stock or obligations into the fund at all? (Company B stock is publicly traded on a national exchange.)