I have a couple questions. 1 - I understand that you may withdrawl from your Roth IRA without penalty for a first time home purchase. Does this mean the original contributions and earned income or just contributions or just income? 2 - Thoughts if this is a good way to save in the short term for a house since the income is tax-free?

I have a need in the context of a litigation to estimate the value of a sociology professor's future earnings and benefits package on average. Does anyone know of a comp and benefits survey or study that could provide a starting point?

I would like to know any information on financial problems caused to any Defined Benefit Public pension funds because a lump sum payment was put into the plan?

Can you tell me of any cases where a pension board was held accountable because a retired member or spouse deminished their lump sum assets?

I have one of those variable life insurance policies, sold to me as a "tax free" method of saving for my son's college expenses. Contributions to it are after tax, and gains and earnings are tax-deferred until I close the account. I was wondering if there's any way to convert the money into a Roth IRA when I close the account so I don't lose any of the capital gains I've made to income taxes. I'd then like to use the Roth account several years later in order to pay for the education expenses. I could just keep paying into the insurance fund until he enters college, but the insurance part of my payment is getting to be too expensive compared to a term policy. I could probably do better on the annual returns and gains with the money elsewhere as well.

Is anyone aware of any videos available to train employees new to the area of 401(k) plan administration?

I have a client whose 401(k) plan is making a QNEC because they did not pass the ADP test. There is no match in the plan. Their corporate CPA is instructing them that the QNEC is to be used to gross up their salary and then addes to the deferral amount shown on the w-2. I thought they were just additional ER contributions to be reflected in the plan account balances Any help?

Employer is a professional corporation. The tax year of the corporation is the calendar year. The corporation maintains a money purchase pension plan. The plan year ends on June 30. Each year the corporation deducts on its tax return the contribution for the plan year which ends within the corporation's tax year.

The corporation adopted a 401(k) plan, effective January 1, 1999. The plan year is the calendar year.

The corporation is contemplating changing the plan year of the money purchase pension plan to a calendar year, effective July 1, 1999.

Can the corporation deduct on its 1999 tax return the money purchase pension plan contribution for the year ended June 30, 1999, the 401(k) contribution for the year ended December 31, 1999, and the money purchase pension plan contribution for the short year ended December 31, 1999, so long as the amount deducted does not exceed 25% of taxable calendar year eligible compensation?

The shareholders will receive a $30,000 allocation under the pension plan for the year ended June 30, 1999. They will contribute $10,000 to the 401(k) plan for the year ended December 31, 1999. Furthermore, they will receive a $10,000 allocation under the pension plan for the short plan year ended December 31, 1999. Does this create any 415 problems?

Are there any other issues which should be addressed?

I am actualy looking for the law regarding this in layman's english. Can anyone help?

When the plan sponsor amends a governmental master plan, will each participating employer be required to execute a new adoption agreement? If no, does the sponsor's amendment of the plan automatically apply to each employer? I assume that if the answer is yes, and the employer does not accept the amendment, it (the employer) would be deemed to have amended the plan and thus be an indivudually-designed plan.

Joe and Bill each sell 100 shares of stock to an ESOP and elect 1042 treatment. Both work for sponsor of ESOP after deal closes and neither is related to the other, nor a 25% shareholder. Can Joe recieve allocation of Bill's 1042 shares and vice versa? Does it matter if Joe and Bill sold their shares to ESOP in same transaction? How definitive is the guidance on this issue?

I have a client who we signed plan documents to set up a NEW Cross Tested Profit Sharing Plan on 12/31. Unfortunately, he already had a Profit Sharing Plan established. Can we fund the cross-tested plan using the cross-tested formulas and not make a contribution to the existing profit sharing plan? Can we merge the old plan into the new plan later this year?

Question: If I set up a Cross Tested Profit Sharing Plan with a 3% Top Heavy contribution to NHCEs,can I use the 3% contribution as the minimum contribution to satisfy the minimum profit sharing contribution for the Safe Harbor 401(k) Plan or do I need to do a separate 3% for the 401(k) plan? Could the HCE then contribution $10,000 (Salary $160,000)to the 401(k)?

Corp A (23 employees) and Corp B (8 employees) are members of a brother-sister controlled group operating under Corp A's profit sharing plan. The allocation formula is nonintegrated. Accrual requirements are 1000 hours and last day of service.

Management of A wants to make a comtibution for 1998 to employees of Corp A but not employees of Corp B. Rate group testing would apply, but have emplyees of B accrued a benefit under the pro rata allocation formula? Wouldn't the allocation formula need to be amended, and amended prior to !2/31/98? Thanks.

Does anyone have quick reference to the DOL's policy for locating and handling account balances of lost participants?

Can a 457 plan be rolled into any other type of plan such as IRA,DC,etc. Have a retired judge that is getting every answer under the sun from financial institutions and from the information I have read all that can be done is distribute or roll into another 457 plan. What are the options for this type of situation.

Thanks for your help

The IRS National Office has published a : IRS Revenue Procedure 99-13. Excerpt:

This revenue procedure provides a comprehensive system of correction programs and procedures for an employer that offers a plan that is intended to satisfy the requirements of section 403(B) of the Internal Revenue Code (the "Code"), but that has failed to satisfy those requirements because of Operational, Demographic, or Eligibility Failures. This system permits an employer to correct these failures, and thereby provide its employees with retirement benefits on a tax-favored basis. This revenue procedure modifies and amplifies the Employee Plans Compliance Resolution System (EPCRS), set forth in Rev. Proc. 98-22, 1998-12 I.R.B. 11, to include specific programs and procedures relating to 403(B) Plans. In addition, this revenue procedure replaces the program described in Rev. Proc. 95-24, 1995-1 C.B. 694, which established the Tax Sheltered Annuity Voluntary Correction (TVC) program, and which was extended by Rev. Proc. 96-50, 1996-2 C.B. 370. Except as otherwise indicated in this revenue procedure, the specific provisions of EPCRS apply to 403(B) Plans.

Here's a link: http://www.benefitslink.com/IRS/revproc99-13.shtml (click)

Employer establishes a 403(B) plan with a matching contribution. It appears that ERISA would apply in that there is now significant employer involvement in the Plan, and an SPD and form 5500 are required. If the employer amends the plan to eliminate the match, do the ERISA requirements go away? How do you inform the IRS that there are still plan assets, but a form 5500 is no longer required.

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jpb

Does anyone have a sample of a FMLA policy to be given to participants that they would be willing to fax or e-mail to me? Thanks.

I understand after HIPAA that cafeteria plans cannot include LTC insurance as a qualified benefit. However, are employers allowed to included LTC insurance on an after-tax basis in a cafeteria plan, as a type of taxable benefit, treated similarly to cash?

[This message has been edited by Cindyd (edited 01-21-99).]