Can I roll my 403© after tax dollars into an IRA and then roll that IRA into a Roth IRA?

Thanks

Help! I am CPA whose client are calling about converting to Roth IRAs. My initial reaction to most was "No", unless they were in a low bracket or young. Having read a bunch of articles on ROTHIRA.COM, I am now no longer sure that is true. I have tried many of the calculators at the website, but I still am unsure. My question is: if I find in 1999 that a client would have been better served by converting, isn't it true that in the worst case, the client can still convert in 1999 or later (perhaps over a 4-year period) and the only thing they lose is the tax on the IRA growth in the meantime (i.e. the period over which they do convert instead of in 1998)? It seems to be less than a fatal mistake if the conversion is delayed. Could someone please address these issues? Thank you.

I need to know the last date that I have to reverse a conversion from an IRA to a Roth IRA. My accountant has advised me that my AGI may be more than $100K for 1998. I have converted one IRA to a Roth IRA. So if, in fact, my AGI is in excess of $100K for this year I will need to reverse my conversion to the Roth IRA. My accountant thought that I probably had until 4/15/99 to make the reversal, but he wasn't sure.

Is there any reason the owner of sole owner of a corp can't have a SEP and a profit sharing plan? Usually I have seen a SEP and a money purchase plan, but since the SEP is not a "qualified plan", is there anything prohibiting the establishment of a profit sharing plan??

If I have an employee who makes $6,000 or less and elects to contribute 100% to his/her SIMPLE-IRA, as allowed by the plan, how in the world am I to make the Social Security/Medicare deductions for his/her share of those taxes? This does not seem possible, yet everything I read says those contributions are subject to Social Security/Medicare withholding.

ERISA Plans are covered under provisions allowing plan participants the right to request plan documents for their own review. Is anyone aware of such provisions under gov. plans?

Where can I find statistics on number of companies that offer DB plans, or only DC plans? Also, what are typical income replacement ratios that are being provided?

Can I set up a Roth IRA without going through a financial planner/broker and if so, how?

The determination of whether a plan is top-heavy is made as of the last day of the plan year. The contribution to nonkey employees is the lesser of 3% or the percentage contribution for key employees.

The plan had failed the ADP test and monies were returned to the key employees by March 15th. For purposes of determining the top heavy contribution for nonkey employees, do we use the actual numbers that were in the plan on the last day, or the amount that should have been (i.e., after the distribution of excess contributions in March)? Obviously, if we use the latter, the percentage will be lower but the lower percentage reflects the true benefit to the key employee for the plan year.

A client wishes to terminate a SARSEP and implement a MPP. What actions must be taken, notices given, etc. for the termination of a SARSEP?

Have a 1 participant plan. Employer is in the real estate business. Money Purchase Plan would like to purchase undeveloped land. Develop the land and sell the lots off. Proceeds from the sale and any other income would come back to the plan. Can anyone point me to where this may be a problem? What about UBI?

I've read conflictinig info. Can I take out my contribution, not earnings,without tax or penalty? IF so does it need to be after 5 years?

In 20 to 30 years when a very high percentage

of people are living off their Roth IRAs, the IRS will have a dimishing group of persons with taxable income. I strongly feel

the tax shortage will cause the IRS to begin

taxing ROTH withdrawals. It happened to Social Security. Millions of people paid into SS with th idea that their benefits would be tax free. Now some SS is taxable.

Does the law revent this - i doubt it.

Under what circumstances can a plan trustee, such as a bank, keep 12b(1) fees paid by the mutual funds in which plan participants invest? I have heard only in "Directed Trustee" arrangements but I am not certain that there are clear guidelines on how to "act" as a directed trustee. Any thoughts?

Can i contribute fully to our SEP and a roth ira in the same year?

Nondiscrimination Module

The NHCE concentration % may be incorrect.

Terminees with less than 500 hours are being included in the concentration test, but not in the ratio percentage test.

example:

3 nhces, 1 hce. one NHCE terminated with less than 500 hrs, one nhce terminated > 500 hrs. terminees do not receive allocation.

while cross testing I get a ratio % of

1/2 divided by 1/1

but my concentration % is showing as 3/4 = 75%.

It should be 2/3 = 66%, or at least that is my understanding of the regs.

This may cause a plan to say it passes, when in reality it fails.

This is the rate group report on an HCE.

..............

create new plan from existing plan (including employees)

have a profit sharing plan. created a money purchase plan, and copied existing employees.

Status code and status date do not get copied, so have to re-key terminees status code and date!

also, participants who I deleted from the

prior year magically reappeared! so I had to delete them from the money purchase.

.........

census request

I am sometimes 'rented' out, so to speak, to do Quantech training. No, I am not working for Quantech, this started as part of something I do for the Southern Users Group. Anyway, I was discussing the top-paid group calculation for HCEs.

One of the items involved is hours - the system checks to make sure ees worked an average of 17 1/2 hours a week.

(e.g. an ee who quits 1/5 with 20 hours is considered in the top paid group count because he averaged over 17 /12 hours a week. [assuming he is over age 21, and has worked at least 6 months in prior year])

One of the trainees pointed out that the census request asks for the following codes: 0 = <500 hrs

1=>500 but < 1000 hrs

2= >= 1000 hrs

I hadn't thought about it before, be he is correct, if all you go by is a simple code like that rather than actually hours, your top paid group count will be incorrect. Most of the time this won't make a difference, but be careful because it might!

see the trainer gets trained!

this is not a bug, but something to watch out for.

The other problems have been reported to Quantech, but I figure this is a good spot to make other people aware of 'possible' bugs. I call them possible bugs, because there is always a chance I coded something wrong, although in the examples cited this seems doubtful.

Can a person who is currently taking substantially equal payments from an IRA convert that IRA to a Roth? (the person is months shy of 59 1/2, at which time his 401(k) and other assets/income will cover his necessary living expenses for a good 20 years).

I need to develop an insurance/beneift survey (health, dental, life, LTD)to survey our employees preferences on coverage, cost, effectiveness, etc. I would prefer not having to recreate the wheel. Does anyone have a stock survey that I may utilize and modify? I would appreciate any assistance.

Do most of you set a goal for the minimum number of billable hours required per week per person? If so, do you track it and evaluate employees (partially? totally?) by it?

How do you address time spent training and marketing?

Any suggetsions would be appreciated! Thanks

Could someone explain to me the integrated plan feature? In a plan that I am working on, they have chosen the integrated plan feature which says that the profit sharing contribution shall be allocated based on a participant's compensation in excess of 65% of the taxable wage base. (The integration % is reduced from 5.7% to 4.3% in this case.)

The employer wants to do a 3% profit share for its employees. Does this mean that all employees will get 3% except for any employees who earn over 65% of the taxable wage base? And, will the employees with the higher compensation get an additional 4.3% profit sharing contribution calculated on their compensation over the 65% of the wage base? I'm confused.