I currently use the Datair document system, do I have to wait until they come out with the restated document (GUST approved language) before restating and amending my volume submitter and custom documents?

I guess it would make sense to since the amendment language would be already approved by the IRS.

I have a profit sharing plan that I'm taking over from an insurance company that maintained the plan document. The plan has been in effect since 1984. I have a copy of the adoption agreement effective in 1984 and a model amendment to what looks like the insurance company's prototype document to comply with TRA'86. Would this model amendment satisfy the requirements for TRA'86 or does the adoption agreement have to be restated and amended?

Any help would be appreciated.

The Roth IRA final regulations appear to limit Roth IRA reconversions after 1999 to individuals who failed to meet the AGI limit for conversions. Is this an accurate reading?

Can a withdrawal made at age 59 1/2 (no hardship) be repaid to the plan if the participant changes his or her mind? I assume that rollover to an IRA is an option, as discussed in Notice 99-5.

I'm interested in a noload or low maint. educational Roth IRA for my granddaughter as well as same noload/low maint. for my wife and myself.Preference in the area of an aggressive mutual fund. Any ideas?

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I am 28 years old and trying to figure out what the best planning strategy is for my retirement. I just changed jobs and now work for a government agency. I am in the process of rolling over my 401K from my previous employer into an IRA and then converting that into a ROTH (no 401K plan was available with my new employer). My new employer offers a 457 Deferred Compensation plan that I can contribute a max of $8000. I plan on leaving this job when I relocate in 2-5 years. I understand that with the 457 I can only roll it over into another 457 provided my next employer has such a plan.

So my question is should I contribute to the 457 or to a Roth? If I should do both which should be my priority? I can afford to contribute $400/month. Any advice is appreciated. Thanks in advance!

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Irene

If I have a short plan year, say six months, do you half all hours requirements, 500 hours for eligiblity, 500 hours for vesting, etc. instead of 1,000. 250 to avoid a break in service, etc. I know compensation limits and 415 limits would be halfed, but deferral limit would not, $10,000 is for a calendar year, right? Thanks

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I want to set up some mutual funds as IRA's. Are there particular types of mutual funds that are not suited for IRA accounts?

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Mary Sutton

My company is considering an opt out plan to save money on our health insurance costs. Does anyone have a plan they would like to share? I have had suggestions of 40% of premium to flat dollar amounts. I would like some more information before I make my recommendation. Thanks!

IRC section 402©4 defines an "eligible rollover distribution" as "any distribution"............etc.

Yet the IRS is taking the position that only early/taxable distributions under 403(B)(7)(A)(ii) and (11) are eligible for rollover treatment from 403(b)arrangements. This position was sustained by The Court of Appeals for the second circuit in FRANK V. ARRONSON (CA 2nd 96-9456).

403(B)8 and (10) are the eligible rollover distribution provisions of section 403(B) while paragraphs (7)(A)(ii) and (11) are the early/taxable distribution provisions. Contrary to the Court's decision they do not conflate.

By conflating them the Court has rendered the REPEAL OF THE SPECIFIC TRIGGERING EVENTS UNDER 403(B)8 that needed to be satisfied for distributions to be afforded rollover treatment MEANINGLESS. This repeal was authorized by the Unemployment Compensation

Ammendments of 1992, effective 1-1-93.

IF THE CODE REQUIRES THE SATISFACTION OF A TRIGGERING EVENT FOR DISTRIBUTIONS TO BE AFFORDED ROLLOVER TREATMENT WHY ARE THESE TRIGGERING EVENTS NOT ENUMERATED IN THE REGULATORY DEFINITION OF AN "ELIGIBLE ROLLOVER DISTRIBUTION????

They are not enumerated because the 102nd Congress wanted to eliminate the Code's restrictions for distributions to be afforded rollover treatment. The 106th Congress should clarify that the early/taxable distribution provisions do not apply to rollover amounts; and in the absence of the Plan Document requiring a triggering event, the plan participant has the statutory right to effectuate an eligible rollover distribution at his or her personal discretion.

[This message has been edited by Joel Frank (edited 03-05-99).]

I will resign my fulltime employment

position this June in order to return

to school for an MBA. I have a 401k plan with my current company.

(1) Is it possible to roll my 401k

funds over into a Roth IRA?

(2) If yes, is this a good move?

(3) If yes, I am interested in invest-

ing my 401k money into a mutual

fund Roth for high return possibil-

ities over the long-term. Any rec-

ommenations on a good fund company through which to establish my new Roth IRA account?

(4) Should I set up the IRA first with

personal funds? Or should I start

with an initial infusion of funds

directly from my existent 401k?

Which is easier?

(5) Are there any tax consequences from

rolling over from a 401k to a Roth

IRA? Or is it a transparent pro-

cess with no reflection until I

withdraw from my Roth?

An employer is testing the 1998 plan year for the ACP test and would like to consider using part of the elective contributions made to the Plan to pass ACP, as is permitted under 1.401(m)-1(B)(5). The employer uses prior year testing. Is there a way to use elective deferrals under prior year testing? Which deferrals are used for NHCEs? Notice 98-1 only sets forth rules for using QMACs and QNECs.

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GBM

We have a self insured retiree supplemental Medicare plan with approx 200 participants and a paid-up retiree life plan with approx 500 participants. The retirees are in NY. We would like to find a TPA (in NY) to outsource these plans to. Any ideas?

Companies A and B are NOT in the same controlled group (or affiliated service group, etc.) However, there is overlap among these two companies, for historical reasons.

Company A and B each sponsor calendar year pension plans. Management of Company A "administers" both plans. (Don't worry, the named Plan Administrator is the plan sponsor of each plan.)

An employee of B terminated employment and was paid a lump sum -- out of Plan A's assets. Oops! The lump sum represented about 0.01% of Plan A's assets and 1.5% of Plan B's assets. Quite minor.

Now, how to correct? APRSC? VCR? Other? Any time restrictions? (It happened around October 1998; we just discovered it.)

(There is no history of errors or abuses, both plans are properly administered; just "an inadvertent screw-up").

Husband H is a 50% owner of business X. Unrelated person A owns the other 50%. There are several employees.

Wife W is a 100% owner of her own sole proprietorship Y; there are no employees.

X and Y are completely unrelated with no overlap of employees, work, etc.

Both Companies are in California (Community Property State).

Question: Are X and Y within the same controlled group? (i.e., can the wife have a pension plan without affecting or being affected by what plan her husband's business has?)

We have a client that is a publically traded company (NYSE) and has 5,000 employees. We need to find an organization that can provide a complete outsourced solution to a stock purchase plan for employees (not a stock option plan). Ideally the "administrator" of this program could provide participant account information either via the internet or through voice response. Does anyone have the name of a company that does a decent job in this area?

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Bob Jocelyn

Western Pension Service

bjocelyn@westpen.com

We will soon be installing the 5.0 version of Quantech which we understand is still in BETA test mode. Could anyone offer some advise on possible problem areas we should be aware of? Also if anyone has a listing of the enhancements that the 5.0 version offers, that would be great. Any information you have about version 5.0 would be greatly appreciated.

Thank you!

Suzie Thalls

We are new Quantech users, in fact we are still in the installation process. We have a question regarding system upgrades. When you receive a system upgrade, what is your testing process? Do you load the upgrade directly into your production environment? Or do you have a testing region? If you use a testing region, do you have any suggestions how to get around this, as we do not have a separate server for a testing region. Any suggestions you could offer would be greatly appreciated.

Thanks! Suzie Thalls

MultiEmployer Plan with over 300 employer groups. Each Employer forwards payroll information and deferrals on a monthly basis to the recordkeeping company. Who is liable if an individual employer does not send the deferral money in within the required time period? When answering the question on Form 5500 regarding late deposits, is it the "Plan" that is late or the individual employer. Should the plan send delinquency notices to the employers.

I have a first year 401(k) plan that failed it's ADP test. I am preparing to return excess deferral. Employer wants to send 1998 matching contribution.

Is 1998 matching contribution based on actual deferral and subject to excess matching contribution, or is match based on deferral after return of excess? Thanks for any assistance.