Can someone tell me or give me a site where to find which fund families require no minimum deposit when setting up a Roth with automatic deposit? I wanted to set one up with Vanguard until I found out they required a $1000 min.

Thanks, Stoughton

How does an employer determine the cost basis, to the plan, of an annual match made in the form of employer securities after the plan year has closed? For example, an employer contributes shares as a match on 4/30/99 for the plan year ended 12/31/98. Is the plan's cost basis based on the fmv of the shares as of the date contributed (in this case, 4/30/99), or can the employer use the fmv of the shares as of 12/31/98? Would the answer vary if the shares being contributed are treasury stock, rather than shares purchased on the market by the employer and then contributed to the plan? Finally, if each participant's interest in the stock is tracked on the basis of "units" rather than "shares," how is net unrealized appreciation determined (i.e., does unitization mean the shares have not been allocated to participant accounts for purposes of determining net unrealized appreciation?)

I am new to investing and I converted my Traditional IRA to a ROTH. Do I have to pay taxes on the amount it increased or on the total value? Please advise. Thank you in advance.

A young investor.

Anthony

I have a client who would like to offer to his retirees who have attained age 60 and have 5 years of service the opportunity to continue coverage under the company's group medical plan from age 60 to age 65. Officers whould enter into a co-pay arrangement with the company. Non-officers whould have to pick up the entire cost of the coverage. Does this arrangement produce any non-discrimination or tax problems? If so, are there any ways around these problems?

------------------

I have a custodian who believes that if his church-run school adopts an ERISA-covered 403(B) plan, the school does not have to comply with the 3 optional ways to meet the contribution limits of 403(B)/415©. It seems to me that educational organization employees and church employees are entitled to the special elections of 415©(4), regardless of what the 403(B) document states and regardless of whether the church elects to be covered by ERISA and the Code.

Have I read this incorrectly?

I have a custodian who thinks that if a church adopts an ERISA-covered 403(B) plan his church-run school can avoid giving its employees the 3 church contribution limit options. Is this true?

Does the ADEA apply to retiree medical benefits (not as applied to reducing severance benefits)? E.g., can an employer charge retirees an age based premium without having to satisfy the ADEA's equal benefit/equal cost analysis?

Thank you.

I am working with a plan that will not allow integrated profit sharing contributions to be used for inservice withdrawals. Was this ever restricted by law? If so, what is the cite? Was it part of the LRMs? Thanks!

401(k) top-heavy test % is 60.71. The plan sponsor has decided (via CPA advice) not to make a top-heavy contribution because the ".71" can be dropped, thus resulting in a passing % of 60. CPA also stated it is up to employer to pick a method and keep it consistent year to year. Our consistent method has been to include the .71.

Can not find any reference to state this is right/wrong. Any suggestions?

does anyone know of a report writer software that is compatible with different types of pension software, mainly datair and asc. both have their own proprietary report writer software but we are looking for something better, simpler.

thanks

I have a doctor client who sponsors two plans ps & mp. He has a partner who is an adopting employer. They both contribute 1/2 of the ee's contributions each year. The doctors are splitting. Do the employees going with the "adopting er" lose vesting? Are they terminted for vesting purposes? Are they affected at all if they roll all money into the leaving md's new plan? I may need to give more info.. but any thoughts would be helpful. Thanks

Employer offers a dependent care reimbursement account (DCRA) funded only by employee salary reductions. Is it permissible for the plan and the employer to allow reimbursements up to the annual elected limit, even if the account balance at the time of the reimbursement does not have sufficient funds to support the reimbursement? The employer, in effect, covers the deficit until the salary reductions cover the deficit. If this approach is acceptable, does it present problems for the employer or employee, particularly if the plan has a fiscal year and there is the possibility that reimbursements to an employee could exceed $5,000.00 in a particular calendar year?

Company A will merge with Company B. Company A maintains a multiemployer plan. It appears that merger would not tigger withdrawal liability because original employer still exists. I've reviewed ERISA Sections 4218 and 4069(B). Any thoughts? Thanks.

A client making a nonintegrated 10% contribution to a money purchase plan wants to adopt a safe harbor 401(k). Both plans will be "paired" standardized plans. It is our understanding that the safe harbor 3% nonelective contribution be satisfied in the money purchase plan, but several questions have arisen - Will the current 10% pension contribution satisfy the safe harbor, or must the pension % be raised to 13? Also, participants are required to complete a minimum of 500 hours of service to qualify for a pension contribution, but no such requirement exists for the safe harbor contribution - can this be rectified? Will the minimum funding standard requiring pension contributions be made not later than 8-1/2 months after the end of the plan year also apply to the safe harbor plan?

------------------

I have set up educational IRAs for my children, but they will not accumulate enough to finance the entire cost of their college education.

Can I withdraw a portion of my Roth IRA prior to age 59 1/2 to help pay the costs of their education?

I know a person who is a federal employee w/ the postal service. This person wants his pension reviewed. ERISA provides the emplyee w/ the right to review plan documents in the private sector. Does anyone know of the process in order to review a federal pension/ Or is there any formal procedure and can it be done? Does someone just ask for documents, eventhough there is no formal legislation providing that right?

ERISA sectio 104 provides for an employee to review plan documents in order to check their pension entitlement. I know someone who is a federal employee w/ the postal service. Does anyone know the procedure for getting documents to review the pension from that type of plan. Or if there is anything specific. Perhaps one can request the documents anyway, but the person wouldn't have ERISA provisions supporting them. Any comments appreciated.

Code Section 404(a)(3) limits deductibility of contributions to Profit Sharing Plans at 15% of compensation paid to "beneficiaries" under the plan.

IRS rulings indicate that an employer cannot count the compensation of a participant for whom no contribution is made for the year (e.g., due to a last day of year employment requirement). Their logic is that such a participant is not a beneficiary under the plan for that plan year because no money has been contributed to the trust for their benefit.

Is any one aware of a different rule in the case of a participant in a 401(k) plan? That is - if a participant is not eligible for a PS contribution (due to a last day of year employment requirement) AND that participant elected not to make any elective 401(k) deferrals, is there any chance the employer can count the participant's compensation for purposes of the 404(a)(3) 15% limitation?

The supporting logic would be that the participant is considered to be a beneficiary because s/he had the opportunity to make deferrals. (This is similar to the approach for minimum coverage testing under Code Section 410(B); i.e., a participant is "benefitting" under a (k) plan as long as s/he is able to defer - whether or not they actually elect to defer.) Have you heard any pronouncements from IRS that might support this reasoning?

Thank you for any feedback.

I presume that Client sponsors a DB plan in which leased employees participate and that these leased employees were leased from Company B for some period ending on day X and then leased from Company C from day X+1 to date.

If this is the case, there has been no change in the status of these employees and they should continue to participate without change.

If my interpretation of your situation is not correct, please provide more details (does the message topic "Terminated DB Plan" mean that the plan was terminated?).

If a plan is terminating and will have excess assets, one option is to transfer the surplus into a post-retirement health benefits account. I would like to know exactly what is meant or howi t's designed, with regard to the health benefits account being part of the plan (as a requirement)?