If a governmental agency "picks up" employee contributions in a defined contribution plan under IRC 414(h)(2), I understand that the contributions are considered annual additions. Assuming the contributions "picked up" meet the criteria outlined in Rev. Rul. 81-35 and 81-36 to qualify as excludable from the employee's gross income in the current year, is any further testing necessary?

Recently was presented with a plan document that states that where a spouse does NOT provide consent, a lump sum will be paid when requested by a participant as follows: 50% of lump sum to Participant or Participant's designated beneficiary and 50% to Spouse. Note: this is lump sum and not and annuity. Is this permissable? My reading of J&S and consent rules in Code make me question this. Please help

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P in multi-employer money purchase pension plan retired in 1991 (when witholding was optional), took lump sum and rolled to IRA. P worked in 1997 and 1998 and retired again in 1998. Plan did

not let P elect between cash and trustee-to-trustee transfer. Instead, plan followed P's 1991 election, paid him 80% and witheld 20% in 1999. P wants plan to "undo" the payment and do a T-to-T transfer to his IRA. Is there a procedure for getting the 20% back from the IRS?

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An employer made a $100,000 contribution to a DB plan. Subsequently, the employer determined that the DB plan's normal cost was only $20,000. Can the employer withdraw excess as a mistake in fact if withdrawal occurs within one year of date of contribution. I don't think such a withdrawal is possible. Any thoughts. Thanks. Ed

I'm 64 I have an IRA that is made up of a Small Cap Stock. It's worth now is 4111.00. At one time it was worth almost 6000.00. I don't intend to cash this out, because I don't need the money as of now or maybe never. I can afford to pay the tax on this money if I decide to convert it to a ROTH IRA. Would it be to my advantage to do so and also my boys advantage? Mae

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Mae

Can an employee elect to have a surgical procedure (i.e. eye surgery in Canada-cheaper than the states) in a foreign country and claim that expense on their health care spending account? The expense is valid but Outside of the country is the question. Thanks!

My understanding is that APRSC cannot be used to return excess salary deferral contributions until after April 15th -- deadline in reg 1.401(g)-1. A client insists that Revenue Procedure 99-13 allows for APRSC to be used before April 15th AND that the distribution is taxes ONLY in 1999. Does anyone else have this understanding of APRSC?

I am processing a plan in which the trustee wants to accrue his fees on a quarterly basis, to be paid on an annual basis, for a plan that is using unit accounting. Does anyone know a way to accrue the fee in Quantech and have it reflected as such in the reports, especially the participant certificate? Quantech support has indicated to me that it is not possible.

Will Roth IRA's be available in the upcoming years or must I start mine before April 15th to qualify for 1998?

And If I must start one before Thursday, what's the best way to go about it now?

Does a 125 cafeteria flexible benefits plan that includes a child care reimbursement account and a premium only plan for health & dental insurance need to have a summary plan document for both or just for the child care since the others are only premium only?

Company initially adopted a M&P standardized prototype plan which gave authority to amend to Sponsoring Organization. The original effective date of Company's Plan was in 1986.

Sponsoring Organization received a Notification Letter from IRS in 1991 approving its TRA '86 Plan.

Through oversight, Sponsoring Organization failed to notify Company of updated plan.

Recognizing that there may be 401(a)(1) and/or other issues, would you consider this a "non-amender," since the plan was timely amended by the Sponsoring Organization.

Where in the law is it required that the Company AGAIN adopt (i.e, timely sign) the plan, when the right to amend has been deligated to the Sponsoring Organization.

Rev. Proc. 95-12 talks about the employer "adopting" the plan, but does not (I think) define "adopt" for this purpose.

In essence, I am saying that if (a) the sponsoring Organization timely amends the plan; and, (B) the Plan Sponsor (i.e., Adopting Employer) "deligates (has previously deligated) to the Sponsoring Organization the right and power to elect any amendment to the Document without the prior consent of Company" that there is no such thing as a "Non-Amender" in this instance.

Do you agree with my position? All comments appreciated.

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Client has SARSEP and SEP - assume NOT TOP heavy - and one EE has deferred legal limit (15% of comp after deferrals). Now client wants to make ER contrib to all eligibles. Is the EE with the maximum deferrals locked out of the ER contrib and is this OK?

Don't forget to look at the potential revenue sharing you can get from mutual fund companies for what are known as sub-TA fees. A mutual fund will typically pay a transfer agent for keeping all the individual records of its investors. In a qualified plan, if you are doing daily recordkeeping, you are the one keeping the records. So, you may be able to collect a portion of the sub-TA fee to help offset other plan expenses. Typically, these fees can be up to $10 or $12 per participant that holds that fund as one of their assets. Many people worry about getting revenue sharing for the 12b-1 fees but fail to get information about these fees.

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Carol J. Ringwald

Can anyone offer me any insight on this matter?

My question, if it is unclear, is basically can a non-spouse beneficiary move the assets of the IRA sharholder from the current trustee to another trustee, once they assume the IRA?

Also, can anyone tell me if there are any Private Letter Rulings on this matter?

Thanks

Is the deadline to convert to a roth from a traditional ira 12-31-98 for1998? or is it 4-15-99? I'm not concerned about the 4 year rule, but would like to do a conversion for 1998 before the 4-15-99 deadline, if possible.

[This message has been edited by bverbout (edited 04-12-99).]

I am rather new to the world of investing, so I'm trying to find the best way of doing things. Any help would be greatly appreciated. Here is my question:

Is it better to invest one lump sum of 2000 dollars every Jan to a Roth IRA or should I contribute 166 dollars per month? What would the difference be?

In 1998 I had a 401-K which I converted to a Roth IRA. Before it could be converted to a Roth IRA it was rolled over into a Regular IRA. This all took place in a matter of a day or two. Should I have been sent with "two" Form 1099-R's? And both have to be reported on my 1040? Thanks for your input!

Adding my Roth conversion to AGI, the total exceeds the break point of $124,500 for Schedule A deductions. Turbotax says I cannot file a Schedule A, but instead must take the standard deduction of $4250 for a single person, thus losing out on the far better option of deducting home mortgage interest, real estate taxes, charitable contributions, etc. Should the Roth conversion that is allocated to AGI, limit the amount of itemized deductions on Schedule A?

I converted a small traditional IRA totally funded with taxed contributions to a Roth IRA in March 1999---I made no additional contributions to any IRAs for 1998---Do I need to report ANYTHING on my 1998 tax return or do I do it in my 1999 return next year? (I know I will have to pay some taxes on my capital gains, the question is: when?).TurboTax was no help!