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.

In 1996, various divisions of a large Co. were sold off. Employees had the option to retire under the old Co. but continue working for new Co. but getting 2% more as Co. 401k % instead of any pension. $13 Mil was given to new Co. for remaining employees (205 people) and new Co. would still contribute to their pension. New Co. now wants to buy-out the remaining people with pension fund (now $16+ Mil) but they 307 people are elegiable (the other people who already received their pension from the old Co. and some of the people from the new Co. who never worked for the old Co. are getting some of this also). what can we do??? PLEASE ADVISE!!! GREGG

I lost my job last year and rolled my 403(B) funds into a Roth. I have since found a new job and our MAGI exceeds $100k. Do I have to do a recharacterzation to a traditional IRA and wait until they increase the MAGI to qualify? How do I handle the gains? And is the $2000 contribution I made to the Roth deductable?

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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Have had traditional ira self-directed with stock that has split many time. Is the cost basis simply the $2,000 initial investment and all the value of the stock (splits) above that taxabel?

I am looking for IRS Ruling 72T Substantially Equal Payment information on the net. I have searched for hours in vain. Would anyone be willing to share resource locations for this ruling? I am specifically looking for a copy of the ruling and resources of firms or institutions who may perform these calculations. Thanks.

Is anyone aware of the IRS tax laws regarding the Section 129 participation ($5K pre-tax) of an employee who is now divorced and a noncustodial parent? This staff person knows that they can claim the exemption for the child based on their divorce decree..., But, are there different rules that apply in determining the child as a *qualifying* person in this instance vs. when someone simply wants to use the dependent child care tax credit on their taxes? (up to $4800)

I have read the IRS Publication 503 (page 4) -- and it is not clear to me. We have called the IRS and they gave us a number for the IRS in Wash DC who deals with cafeteria plans.

Any help would be appreciated.

Thanks,

AMB

We currently file approximately 350 5500s annually. A local soft ware company is developing a product for electronic filing of the 5500. We have been asked to provide a sample of various 5500s with schedules for testing purposes. Names and ID #s would be removed. Does anyone see any legal issues here? Once filed, 5500s are part of the public domain anyway. Just thought I would check.

Is there any other reason that someone would be eligible to defer their RMD OTHER than the fact that they are still employed and not a 5% owner?

I am currently in the process of doing research on what most employers are considering fulltime work weeks. I work for a regional CPA firm and we consider 37.5 hours per week full time in order to be eligible for benefits. Does anyone have any surveys or other information regarding this, or would like to share their policy with me. I am having a very difficult time finding any information regarding this. Thank you in advance.

I am changing the form of a plan from an ESOP to a profit sharing plan. I anticipate that, shortly thereafter, the company stock will no longer be readily tradable on an established securities market. Currently the stock is publicly traded on the NYSE.

When the stock becomes no longer readily tradable, must I include a put option in the profit sharing plan thereby preserving what would have otherwise been required to be done if the plan were still an ESOP? Alternatively, can I eliminate in-kind distributions once the stock becomes not readily tradable as I would be able to do if the plan were still an ESOP under the ESOP and stock bonus plan exceptions of the 1.411(d)-4 regulations? If so, how do the limitations of the ESOP investment requirement of 1.411(d)-4 Q&A 2 come into play once I change the plan to a profit sharing plan?

If an employee is part time (working 25 hours a week) and not eligible for health benefits but otherwise a regular employee and all full time employees performing the same work in the same divison are entitled to 401(k) benifits is the part time employee also entitled to benefits?

ARE YOU AWARE OF ANY COMPANIES IN CHILD CARE OR YOUTH PROGRAM INDUSTRY THAT HAVE FORMED AN ESOP OR STOCK OWNERSHIP PLAN? I AM INTERESTED IN THE SUCCESSES, ROADBLOCKS, LESSONS LEARNED.