Is it necessary for governmental plans to submit for a qualification letter? Is it true that governmental plans are considered "Qualified" until not qualified? What are the benefits of tax qualification?

I am looking for a check writing program to use for distributions from 457PST plans. I need to be able to export the data from Quantech and load to the check writing program. I heard a rumor that a company in Florida was successfully using a program but I was not able to get the name. Any suggestions?

I have opened ROTH IRA account in 1998. I found now that my MAGI is > 50,000.00.

What are the option do I have now?

Since, my company has 401k plan I can not open regular IRA. Can I open regular

mutual fund and transfer the money?

What do I need to do to report to IRS?

Any extra IRS form need to fill out?

Now that I have your attention.....

Have you ever longed for a Crystal version of theADP /ACP test? I'm giving away one such version at the next Southern Users Group meeting being held Friday April 30,1999 in Atlanta.

(Details on the report below)

Souther Users Group Agenda:

8:00 - 8:30 Continental Breakfast

8:30 - 9:00 Business Meeting

9:00 - 10:30 Document Update, emphasis on safe harbor plan. Instructor is Robert Richter from Corbel

10:30 - 12:15 Quantech 5.0 Update, instructors: Tom Poje, Lorraine Dorsa

12:15 - 1:30 Lunch, sponsored by Manulife

1:30 - 4:00 Autodoc Update and training, Instructor: Beverly Jackson

The group is planning on dinner afterwards.

The group has reserved rooms at SWISSHOTEL in Buckhead. 149.00 a night, call (800) 253-1397 for reservations. Rate is guaranteed through April 12. Hotel is accessible by MARTA from the Airport to the Buckhead stop.

Nearby Hotels: Holiday Inn $99 per night. (404) 264-1111 (next door to Swisshotel

Marriot $109-$119/night (404) 869-0818 (across the street from Swisshotel

............

membership is $50 annually (per firm)

future meetings this year:

Orlando, FL Aug 6-7 (2 day)

Columbia, SC Nov 13

nonmembers who wish to attend (or those who want to become members) should contact:

Maggi Heffernan (770) 641-1429

Hey, last year we had 2 people from Seattle attend!

..............

Anyway, no guarantees on my ADP report, but this is a Crystal version, it sorts alphabetically, and will tell you who is excludable on the ACP test.(but does not do statutory exclusions at this time)

There is also a version for plans with no match contribution.

Report seems to be working fine, but one never knows what exceptions might arise.

Anyway, I'll bring that and a bunch of other reports to share.

By the way, I will be at the hotel Thursday night, if someone wants to hash out some Qtech questions.

Hope to see you there![my e-mail is lda@leading.net ] thats the letter l not the number 1.

We have come across a situation where a participant/shareholder has named his company as beneficiary of his MP/PS benefits. There is no QJ&S issue and my question is does anyone feel this prohibited by Erisa.

Any thoughts would be appreciated.

Who has implemented an integrated disability management program? What does your pprogram look like and what results have you had? Anyone willing to share their experience, I would like to hear from you.

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joy_howse@hotmail.com

I am looking for examples of excellent communication material, most particularly consolidated annual statements. Anyone willing to share samples or exchange on this subject, I would like to hear from you.

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joy_howse@hotmail.com

Other than by going directly back to the stock prices for your IRA on the date of the reconversion, is there another way to calculate the taxable amount given the information only on the Form 5498? They report only the total of the distributions and I've heard the IRS wants a letter enclosed that tells them how you calculated the taxable portion. Do I simply say in the letter "That's how much those funds were worth on the date of the last(and in my case only)reconversion."? Seems too simplistic given that if that's the only way to calculate the taxable portion it will be the content of all letters. I guess I should say that mine is not a partial conversion.

Thanks for any help,

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mallo

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mallo

Company A buys three different Physician Practices, B, C and D. All 3 practices had their own plans. B terminated/distributed its plan. C froze its plan. D merged assets into Company A's plan. A, B, C and D are an affiliated service group (B, C and D are participating employers in A's plan).

Which plans (if any) should be aggregated with A's plan for top-heavy? I'm hung up on the whole "sponsored by the employer" thing, since B, C and D's plans were never sponsored by A and really wouldn't be considered A's plans. My thinking is that you would include D (since the assets are now part of A's plan anyway), but not B and C. Am I totally crazy, or is there something else I should consider?

Now what's this I hear that if a plan provides for 59 1/2 distributions, the plan is not required to make RMD's?! Please tell me this isn't so! I've never heard of this until this morning!

I was told that if I was participating in my company sponsored 401(k) program that I could not open an IRA as well - that it had to be one or the other. Is this true?

Existing profit sharing excluded employees paid by commission only. In 1997 profit sharing amended to add 401(k)/401(m)provisions effective 1/1/98. Plan topheavy, therefore TPA inorms employer that commissioned people must get top heavy minimum even though excluded from profit sharing. Employer gives top heavy minimum. In December 1998 plan is amended to exclude commissioned people from both Profit Sharing and 401(k) effective 1/1/99. However, inadvertently, employer continues to make salary deferral contributions on behalf of these employees for January and April.

How can the employees get back these deferrals? Must the employer make a 3% TH minimum contribution?, etc.

Thanks.

We currently provide eight weeks paid Maternity Leave (for child care purposes -- disability and heath verification is not required) to female staff members. Don't we also have to provide the same benefit to males (paternity leave)? The paid "maternity leave" runs concurrent with FMLA. Males who utilze FMLA to care for a new child are not paid for the first eight weeks as are females. Thank you.

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For purposes of Sec. 415, is "compensation" for U.S. employees of a foreign affiliate calculated differently if wages are partially or fully paid in foreign currency? Sec. 406(B)(2) provides that "compensation" for purposes of Sec. 401(a)(5) includes "all remuneration" which suggests that wages paid both in foreign and US currency is considered compensation. Any thoughts?

During 1997, Individual A was employed by Company A and participated in Plan A. A was considered an HCE under Plan A. For the first 6 months of 1998, Individual A was employed by Company A and continued to participate in Plan A. Effective July 1, 1999, Individual A was employed by joint venture (Company A and Company b) and participated in Plan B. A's compensation for the last six months of 1998 was less than $80,000. While A may be considered an HCE for purposes of Plan A's ADP test for 1998 (based on lookback year), I believe he would not be considered HCE under Plan B. See 1.414(q)-1T, Q&A-13(B) and ©. Any thoughts? Thanks.

What would be the tax effect, particularly penalties, if a conversion is done in a year that is later audited resulting in the AGI going over the conversion threshold?

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-Del Rae

[This message has been edited by Del Rae (edited 03-18-99).]

I have a client that maintains a nonqualified nonaccount balance plan that supplements their qualified defined benefit plan (SERP). The amount deferred under the SERP is not reasonably ascertainable until the employee terminates employment. Generally, under the FICA rules it will be taken into account as FICA wages at that time. How do you handle the collection of the employee's share of the FICA tax? If you determine the "amount deferred" early in the year before the termination date can you withhold from his other wages prior to his retirement date? If you can't determine the amount deferred before the termination date and there are no other wages left to be paid from which you can take the required witholding, what do you do? Require the employee to submit payment of his share of the FICA tax? Would appreciate any and all ideas concerning these issues.

How is the match contribution determined for self-employed/partners participants in a 401(k) Plan? It is now permitted, but is it possible in a plan that provides for (1) elective deferrals, (2) a match equal to 50% of the elective deferral up to a maximum of 4% of compensation (earnings) and (3) a discretionary profit sharing contribution?

[This message has been edited by GeorgeK (edited 03-17-99).]

Will someone please check my math. In determining the GATT applicable interest rate to be used for ex. Jan. 1, 1999, we use the Dec. '98 30 Yr rate. Looking back two months (no grandfathering req.), we would be using the Oct. '98 30 Yr rate, and looking back 5 months (garndfathering req.) we would be using the July '98 30 Yr rate. Correct, or have I went back one month too far?

Thanks gentlemen, I'll give it a try.