I understand 5498 and 1099R reporting is changing from 1998 to 1999 for Roth conversions . . .

If I convert my traditional IRA to a Roth in 1999, is the conversion amount reported as a contribution or rollover on the 5498 for the Roth?

Is the conversion amount reported as a regular withdrawal on the 1099R for the traditional IRA.

Does anyone know what the new forms will look like?

I have an employee who worked for a hospital from 1977 to 1982. She left her money and since then the hospital merged with another. They have a new plan now. She wants to take that money and roll it into our plan, but she can't find anyone who can give her information. She is getting major run-around. Any ideas of who can help her? Someone must be held accountable for the money. The employer, or the administrator? Any ideas would be helpful.

Overview:

Company A sponsored and maintained a DB pension plan (originally effective 1953). Company A was acquired by Company B (after 1970). After the acquisition, Company B assumed the liabilities of Company A and began to maintain the beforementioned pension plan.

At that time, there was a federal statute, the Welfare and Pension Plans Disclosure Act, 29 USC 301 et seq ("WPPDA") which imposed disclosure obligations on employers, but did not provide federal jurisdicition for benefit claims. WPPDA was repealed upon the enactment of ERISA, but continued to apply to any conduct and events which occurred before January 1, 1975.

Questions:

1. What other pertinent law would govern a pre-ERISA pension plan? State common law of Trusts?

2. I do not have a copy of the original plan document (effective 1953). The plan has been amended twice ('59 restatement, '66 amendment). I have copies of the amendments (which were received from Company b), but they are unexecuted -- If a employee participated in the pension plan since its original effective date, is that pre-ERISA plan required to preserve benefits, rights, and features in subsequent restatements prior to 1974?

the c-1 exam is fairly comprehensive-as important as knowing the basics of defined contribution and defined benefit plans is that you carefully read the questions. The questions challenge your attention to detail, which of course is an important aspect of plan administration. Spend lots of time reviewing the old tests. Look for words like "NOT", "MUST", "MAY" etc.

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A self-employed individual started an IRA when he was young, went to a SEP as his practice grew and finally set up MPP and p/s plans. Things are slowing down now, and he would like to consolidate everything into a single plan, the SEP. I assume that the IRA can be rolled into the SEP. I can find nothing that prevents the qualified plans from being terminated and the proceeds rolled into the SEP. However, the client has been advised by another consultant that rollovers from the qualified plans to SEP's are not permitted. The client is not concerned about losing the ability to re-roll back to a qualified plan. Am I missing something?

A local business planned to roll out a new Chrismass Club savings plan in which the company would match a percentage of the money an employee deferred based on the departments Customer Service Rating. Would this type of plan fall under the provisions of ERISA and if it does what restrictions would that place on the plan

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Dave

Are there any 401k service providers that provide access to the Vanguard Family of funds for small businesses (50 employees)

What states give special treatment to IRA money converted to a Roth? The conversions would result in a high state tax bracket, so without some deduction it would seem prudent to move temporarily (at least the year of conversion) to one of the states with no income tax. Any help will be appreciated.

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paul

I rolled 80k from a 401k to a IRA and then coverted to a Roth in 1998. This increases my income by 20k/year for '98,99,00,01. ok so far. For '98 without the conversion, my tax liability was ~10k. With the conversion, my tax liability increases to ~15600 (10k+(20k*28%)(I'm in the 28% tax bracket). Three courses of action I think; 1) Do I now have to change my witholding to make sure that at least 15600 is withheld instead of at least 10k, or 2)do I have to make estimated tax payments to make up the difference between 10k and 15600, or 3)make sure that at least 10k is withheld and then make a big payment to Uncle Sam on 4/15/00, 4/15/01, & 4/15/02?

Thanks for your help!

If the answer is yes, then does every test need to be restuctured in case the test is restructured in the next year and relies on prior year NHCE%s? Please site any regs. explaining this issue.

Thanks!

Also, if a plan was shifted in prior year and the employer elects to use prior year to pass 1998 testing, are there any other consequences?

A profit sharing/401(k) plan requires eligible employees to complete a year of service before they can participate in the plan.. Two participants either terminated employment or went on leaves of absence. One employee may have incurred a break in service. Are these employees autotically back in plan on their reeployment or do they need to complete another year of service? Plan has no reemployment provision, but break in service rules might apply if break did occur. In that situation, employee would need to complete another year. Any thoughts>

One of our clients is interested in doing cross-testing for 1998. I am of the understanding that it is too late for 1998 and that the client needs to adopt an amendment to do cross-testing for 1999. Am I correct is this assumption? Any help would be appreciated!

Will a profit sharing plan allocation formula that allocates an employer discretionary contribution first a dollar amount equal to 30% of the sum of each participant's total compensation plus excess contribution (amount over TWB) then the balance proportionally on participant's compensation to total compensation of all participants pass general nondiscremenation tests or this is type of allocation formula disallowed?

Husband (H) and Wife (W) own a company with an overfunded DB plan (assets > PVAB) and a DC plan.

Naturally (since this is California), they are getting divorced. As part of the divorce agreement, wife wants to waive all rights to the DB plan and the DC plan (presumably in return for the house, the kids, the dog, whatever).

1. She needs two QDROs, right?

2. His DB benefit for himself and his benefit from his wife (i.e. as an alternate payee?) would be separately subject to IRC 415, not combined. Correct? (What code/reg cites do you have?)

3. Also, the "transfer" of his wife's DC account balance would not count as an annual addition. Correct?

(Let's ignore 415(e) for now since it looks like it will go away in about 10 months.)

Thanks

I'm looking for a technical writer in southern California with the ability to write articles and handbooks on COBRA related issues. You may contact me directly at coreypro@deltanet.com to inquire. (This is a full time regular position.)

A Patients' Bill of Rights bill of some type appears likely to pass Congress this year (or next). What are these rights? What should be included? What should not be included? The right to sue for denied coverage?

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Ray Berry

A plan amended the definition of compensation as of 1/1/96. An employee terminated in 1997. The plan sponsor interprets the employee's accrued benefit using the new def. of compensation for the years 1993 to 1997. However should the old def. of comp. be used for 1993,4 and 5 compensation, or is it reasonable to use the new def. which results in a lower avg. comp.

i have a client that wants to split a combined 401(k)profit sharing plan into one hourly paid ee plan, and one salary paid ee plan. i always thought these types of plan were tested together, but i was told last week by a lawyer that they can be tested separately. now i'm REALLY confused! can someone clear this up for me?

Is it possible to amend an existing 401K plan to a safe harbor 401k for the calendar year 1999? The notification to the employees prior to the plan year is impossible. If it makes a difference, the safe harbor match would be greater than the match currently in existence.