I don't deal with SEPs and SARSEPs that much. How do you calculate eligibilty on these plans.

My reading of the code leads me to believe that if you have a one year, a two year or a three year these are not EXclusions the way one calculates eligibility in a pension/profit sharing plan, but INclusions. IE you look at the population the end of the year and say "ok, who worked for me during the last twelve months" or 24 or 36 and if they did, they are IN the plan.

Is this correct?

The adoption agreements of most prototype documents contain a section requiring acceptance by the prototype plan sponsor. In that way, the documents cannot be used without the knowledge and consent of the prototype sponsor. What happens if the prototype document is used without the sponsor's written consent? Is the Plan a valid adoption of a prototype? Is this a qualification issue?

I mistakenly contributed too much to my

Roth IRA. (I contributed more than my earned income) I removed this excess 1998 contribution and its gains before the 1998 tax deadline. I am fairly sure that I am not subject to the 10% penalty or the 6% since I removed them before the 98 tax deadline. I am not sure if:

1)I declare these gains on my 98 taxes or my 99 taxes

2)I will recieve a 1099-B or 1099-R (I think it should be a 1099-b)

Assume that you wish to convert $100K in mutual funds from Traditional IRAs to Roth IRAs in 1999. Assume also you have eight Traditional IRAs with $50K in each. Why not convert all eight mutual funds from Traditional to Roth IRAs in early 1999 and come April 15,2000 recharacterize the six mutual funds that had the least increase in value? Would not this conversion strategy maximize the value of your 1999 Roth IRA conversion while taxes would only be paid on the $100,000 of the two mutual funds that had increased the most in value prior to tax filing deadline in 2000? Your input is appreciated.

I'm looking for good examples of IPS's for a client?

Any help would be greatly appreciated.

You can just e-mail them to me @ bradbrewer@aristotle.net

I have a client who incorporated mid-1998 from a sole prop. The client wants to continue the plan on behalf of his corporation. Does his Keogh Plan (P/S), a prototype, need to be terminated or can it be amended by restating it as a plan sponsered by a C-corp effective as of the day the business entity is changed? This question seems to come up quite often, but I can find no consistent answer.

Thanks for the help!

Our company has a full flex section 125 cafeteria benefits plan. We are interested in setting up a mass transit benefit pre-tax. I realize that this can not be set up as a flexible spending account in the 125 plan, but would appreciate any information on other ways to set up this benefit for our employees. We do not wish to purchase the transportation passes for employees, we just wish to offer the pre-tax savings as a benefit.

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Betty Taylor

Director of Human Resources

RHD, Inc.

I cannot find specifics about "qualified" deductions for education expenses. I would like to use my Roth IRA funds to help fund my kids' college tuition in 10 years but I can't tell if my kids' education qualifies. A Yahoo! contributor writes: "The expenses must be incurred by one of the following: you, your spouse, your spouse's children, your grandchildren or your spouse's grandchildren". What about MY children?

Are there any inherent advantages or disadvantages of different investment classes (i.e. growth vs. value funds, large vs. small cap funds, bond funds, reits) when used in a Roth vs. a Trad. IRA. Also, are prefered stock funds apropriate in IRA's

(1) As a general rule, are there any benefits to be derived from converting a 401(k) to a traditional IRA?

I'll be getting a share of a 401(k) as part of a divorce settlement. If I were to convert this it would be penalty-free in the context of a QDRO. But it might not make financial sense.

(2) Would there be any long-term benefits to then reconverting the traditional IRA immediately to a Roth IRA? There would certainly be a tax liability on this (going from a tax-deductible to a non-deductible plan), but would this "second" conversion incur a penalty because it is too far removed from the QDRO? I'm thinking that some of the tax liability would have to be paid from these assets (though not all), and this might constitute an "early withdrawal".

I would appreciate any clarification of these two issues.

Thanks!

If a plan sponsor returns any excess contributions by March 15 but does not adjust the returns for any gains/losses is this a valid return? Is the excise tax still due on the excess contributions?

Is the termination of a 457 Plan much the same as the termination of a plan qualified under 401???

Also, can a 457 Plan be frozen, i.e., no more deferrals allowed, and the assets held in the plan distributed as per the terms of the plan???

Any help appreciated,

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Does anyone offer continued health benefits for surviving spouses, other than COBRA? Is there a fee involved? If the employee would have been eligible for post-retirement medical, is the surviving spouse offered continued medical as if the employee had already retired?

Thanks for any help provided.

We are a quasi-governmental Authority that has been participating in our State government's 457 plan for several years. We now want to set up our own 457 plan, but we are concerned about the impact on our employees' current 457 assets. Our employees would not be able to continue to participate actively in the State plan. Can anyone tell us whether we will be required to transfer all of the current accounts into our new 457, or will we be able to allow our employees to choose when, and if, their current accounts will be transferred? We view our accounts as:

1. Active accounts owned by active employees;

2. dormant accounts owned by active employees;

3. dormant accounts owned by terminated employees; and

4. accounts with current benefit distributions.

Because we will have 3 vendors, each will up to 10 investment vehicles, we would prefer to allow our participants to choose when and where their assets are transferred and then have the State transfer the funds as elected.

Please take a look at the "Retirement Plans in General" message board. Look for the topic: "what qualifies a distribution for rollover treatment"?

Is there anyone out there that disagrees with the Court? Thanks, JOEL L. FRANK.

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I am interested in getting feedback on what the perceived impacts of managed care external appeal legislation will be . I would appreciate any thoughts!

In a recent magazine article, which I can no longer locate, it talked about a parent opening a Roth IRA for a child at the age of 16 who had not made the $2,000 and based on certain guidelines of investment would end up with a pretty good sum upon his retiremetn. Our financial planner thinks I'm crazy and does not know of anything like this. Please send me in the right direction. I'm really not that nuts.

If a plan document was never submitted for a determination letter and the plan is amended and restated for the 1996-1998 changes (GUST, would there be any problems in submitting it for a determination letter (the document has no unusual plan provisions)?

What should I be aware of in investigating whether to merge a money purchase pension plan with a 401(k) plan? How is this done?

I just read the "Inheriting a Roth Ira" list of 11 messages and found it confusing. I don't think much has been said about inheritance issues for people in the 40s 30s that have substantial Roth IRAs. What are the key issues? Thanks