Looking of information on existing benefit plans that include paid time off that is not earned time, vacation time or sick time for people who are adopting a child or a father who wants to take time off for the birth of his child.

Must a defined benefit plan using elapsed time credit a terminating employee with benefit and vesting service credit for period beyond his termination date represented by the amount of accrued vacation paid upon termination of employment?

We are in the process of rewriting our disability/LOA policy and want to utilize it at all our US locations. However, it may cause at some locations, a hardship in regards to cost and have serious business implications. Beyond the 12 week FMLA law how long do companies hold positions open for employees on disability? At what point are employees who are on disability terminated? What benefits remain in effect during disability/loa and who pay the cost? Are vacations pro-rated for people on disability? How about bonuses - are they pro-rated?

I would appreciate any thoughts, ideas, etc that any of you have that can help us in our policy development.

A client had operated a business for 5 years as a Sole Prop., and recently changed to a C Corp. effective 1/1/99. The client also wishes to establish a SEP plan for 1999. Question: Can we use the 5 years of Sole Prop. service for purposes of establishing maximum service eligibility (i.e., 3) on a 5305 SEP?

Help! What can we do in the case of a merger of two 401(k) plans (a smaller into a bigger) where we failed (a long time ago) to get proper written authority to merge the smaller into the bigger plan by amending the small plan document. All the investments were liquidated and moved into the new plan, it seems without authority. Also someone messed up and required the employees of the smaller, merged corporation to ENROLL in the bigger plan in order to participate (i.e., they didn't automatically become participants in the bigger plan and wouldn't get to contribute or get matching contributions unless they enrolled). Has anyone ever dealt with this? What can we do?

Here is the set-up. Taxpayer has had a traditional IRA for several years, making non-deductible contributions for approximately 10 years (therefore a total of $20,000 has been contributed.) The monies were invested in a high-risk fund, consequently the remaining balance is about $3,000. He directs the bank that handles the IRA to transfer the funds to a ROTH managed by one of the big investment firms.

I have a suspicion that he has blown the opportunity to claim the $17,000 loss by this direct transfer. I am of the opinion, that the only way to preserve the loss is to take physical possession of the $3,000, and even wait out the 60 day period. Then, open a Roth as usual.

Anyone have any comments? I cannot find anything specific when the Traditional IRA has lost so much and then gets converted.

Thanks.

Ken.

I have been getting conflicting information from the IRS on just what is included in the modified adjusted gross income to determine the dollar amt. for the limitation of the conversion of the roth ira.

I retired and I took a lump-sum distribution from my 401K and am using the 5 or 10 year option to pay the taxes. The distribution is reported on part 3 of form 4972 and is not reported on the 1040 form and is not shown in line 33 on the 1040 form (adjusted gross income). Do you know of any case

where it is added to the modified agi for the purpose of determining the

eligibility for a roth ira conversion?

Thanks for your help!!

CAN A SELF-EMPLOYED INDIVIDUAL CONTRIBUTE TO A ROTH(OR REGULAR)IRA IN ADDITION TO A SEP(SIMPLE)IRA? IN OTHER WORDS FOLLOWING THE GUIDELINES FOR A SEP-IRA ALSO CONTRIBUTE $2,000 TO A ROTH. THANK YOU

Can anyone tell me where I can find a table of P.S. 58 costs on the Internet?

I understand that COBRA applies to employers with 20 or more employees. Do COBRA benefits have to be extended to an employee terminating after age 65 (due to serious illness, if it matters)?

A tax-exempt organization, a hospital, sponsors a defined benefit pension plan. One controlled group member that has adopted the plan is a for-profit corporation. An employee retiring at age 55 who is subject to the 415(B) annual limit spent most of his career at the tax-exempt plan sponsor but has worked the last several years at the for-profit affiliate. His accrued benefit is based upon the service with both of these employers. Is anyone aware of any basis for applying the less draconian reduction applicable under 415(B)(2)(F) for plans maintained by tax-exempt organiations to all or part of the benefit (as opposed to the larger reduction applicable under 415(B)(2)© to plans maintained by for-profit entities)?

Does anybody have any experience with a company called US Healthworks? Do they offer good value, analyze claims for wellness opportunities or what? Any info of whatever nature would be appreciated.

Didn't recent regulations under HIPAA address whether requiring an employee to be "actively at work" in order to be eligible for health coverage would constitute a violation of HIPAA's discrimination provisions? I cannot find any discussion of this issue but have a clear recollection of it being addressed at some point.

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Under the substantially equal periodic payment exception to the 10% excise tax on early distributions, are there limits on when the money can actually be distributed? For example, if the amortization method is used and the participant calculates an end of period payment using a reasonable interest rate and life expectancy, must the participant take out only a single distribution at the end of the year. I know its possible to compute quarterly or montly distributions. I'm really just interested in knowing if its acceptable for the annual distribution to be distributed in unequal payments during the year as needed. Thanks in advance for your comments.

Tax time is over. The first year's tax payment for the converted Roth IRA has been sent to IRS. Now that I know how much I have to pay to IRS each year for the next 3 years for the rest of the converted Roth IRA, my question is whether there is a rule on how we should pay it, that is, should we pay the tax we owe by quarterly, or a lump sum at next tax time without a penalty? Business has to do quarterly tax estimates. In addition, the IRS rule is that if the tax withholding is less than 90% there is a penalty at tax time. But I have not yet been able to find any information about how IRS requires for Roth IRA tax payments. Can anyone tell me what I should do? Thanks.

Yan

What sections of ERISA are 403(B) plans established at public universities subject to? Are these plans subject to discrimination testing (i.e. ADP testing). Are there other tests that are requirred as with 401(k) plans (i.e. minimum coverage/participation).

I beleive that these plans are subject to the annual maximum of 25% or $10k, is this correct? Any other testing requirements I need to be aware of??

Thank you.

today on benefitslink there was a link to a CIGNA website that summarized state income tax withholding rules. I found it very useful. We do business in just about every state. Does anyone know of other sources or links to "official" information about the withholding rules for the various states?

I know, I know. The “I” in IRA stands for individual. I have told that to clients a million times - no matter what the attorney who drafted your trust tells you, you can't "transfer" the IRA to the trust (before your death) without creating a taxable distribution. I have always thought this to be the gospel according to the IRS (Treasury, Congress, whom ever...)

But, I have recently had 2 different clients tell me they read somewhere (where they can't remember) that you can move your IRA to your trust prior to your death without causing a taxable transaction.

What have I missed now?

As usual, I am thanking you in advance for your assistance.

Kathy

Can a bonus plan that vests performance bonuses 20% per year for seven years avoid ERISA coverage? Intended recipients are in mid-30s and are not necessarily in "top hat" group.

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What are the fiduciary rules for investment of plan assets applicable to church plans? Where may such be found? Any input is appreciated.