I have two questions: (1) Is it appropriate to provide a domestic relations order exception to the exclusive benefit language required in the trust? (2) Can you provide for reasonable Plan/Trust expenses to be paid from trust assets? It would appear to me that the answer to the first is no and that you can pay legitimate expenses from the trust but I would appreciate other comments. Thanks.

How are people handling QDRO's when there is an outstanding loan in the participants account? The alternate payee does not want the loan responsiblity. Example: alternate payee is awarded 60% of total account balance. Account contains 50K in cash and a 50K note(loan). What langauage protects the alternate payee so that when the loan is paid back, the alternate payee receives the payments. What happens if the participant defalults? Any protections?

If a small 401(k) plan covers one hce and 2 or three nhces and the company offers a safe harbor match and none of the nhce's defer, can the hce still defer the full 402(g) limit since there is no ADP test?

If separate accounts are no longer required for Roth Conversions and Roth Contributions, how is the 5 year distribution period determined for subsequent yearly contributions when the conversion was made in 1998?

What I am assuming you wish to do is have the contribution posted to the individual accounts but not perform the investment buys associated with that contribution. This way you have the contributions in the system to perform the necessary testing.

Assume the following:

Plan year is 10/1/97 - 9/30/98.

Employee deferrals for the last month of the plan year are deposited after 9/30/98.

Matching of deferrals for the last month of the plan year are deposited after 9/30/98.

To have the contributions posted to the 9/30/98 plan year without having to perform the associated investment buys you could do the following:

1. Establish an Employee Receivable account and an Employer Receivable account along with the other investment accounts. The account type used for these accounts should be Employee Receivable and Employer Receivable, respectively.

2. To post the contribution, input the Employee Receivable investment in the ACCOUNT # on the contribution transaction input screen, with the same being done for the Employer Receivable contribution. Also select the appropriate contribution type EE-Pre-tax, ER-Pre-Tax Match etc.)

3. Post the transactions as you would normally although this does require the posting of Employee and Employer contributions separately. (The Confirmation Required should not be selected for the posting).

4. The contributions will now show on the participant statements under receivables, have the data in the system for testing, but not require you to actually perform the investment buys.

When you actually do the investment buys for the "receivable contributions" you will perform the following (which should be in the following plan year):

1. Use a Transfer/Exchange transaction, selecting the Transferring Receivables option, to transfer the Employee Receivable account into the Employee Deferral.

2. Use a Transfer/Exchange transaction, selecting the Transferring Receivable" option, to Transferring Receivable to transfer the Employer Receivable account into the Matching.

3. If Confirmation Required for the above two transfer/Exchanges is selected, perform the investment buys as instructed.

I'd check the 1040 Form to be sure, I think the answer is Yes to all of your questions.

If one converted to a Roth in August and then later recharacterized to the traditional IRA and now finds that the original August conversion date will be most beneficial, is there a way to recharacterize backwards to the original conversion date? Is there a way to just "undo" the recharacterization? (Market timing is tough and made tougher by brokerage firms paper processing delays.)

I would appreciate input regarding the manner in which the Calif. FTB treats Roth IRA conversions. Does the amount converted have to be declared as ordinary income as with the IRS? If not, how are the future distributions treated ? Any help will be appreciated.

I am 62 years old and have some money in a

Tax Sheltered Annuity (TSA). Can I transfer

$2000 of this TSA and invest it in a Roth IRA? Please let me know if this is allowed by

the company that is handling my TSA.

I have been told that I can convert an IRA which I currently have in a traditional IRA in a mutual fund to to Roth IRA at no cost. A traditional IRA which I currently have invested in common stock (GE and IBM) will require a commision fee; commission fee to withdraw and a commission to reinvest/ rebuy. Is this correct ??

An individual died after payments had commenced from an IRA. Payments were based on individual's life expectancy (not recalculated. Individual's spouse is beneficiary. (1) What are her options? (2) Over what period is she required to receive distributions from the IRA? Any thoughts? Thanks. Ed

Are couples eligible to make 1998 Contributory Roths if their 1998 AGI exceeds $160,000 because of Roth conversions (income + Roth conversion amount > MAGI)?

Has anyone here handled an inherited IRA, for a client over age 70 1/2, who may wish to convert the inherited IRA to a Roth IRA?

My facts have a client inheriting an IRA from her husband, who died in 1998. It appears that the first required minimum distribution attributable to that inherited IRA will not have to be made until December 31, 1999.

This minimum distribution will likely be over $100,000. The client is considering part of the IRA to a Roth IRA. I am wondering if the 1999 required minimum distribution will somehow implicate the $100,000 modified AGI limitation in 1998, even though the required minimum won't have to be distributed until 1999.

My interpretation is that the 1999 minimum distribution will not impact the 1998 modified AGI limitations, but wonder if anyone here has already looked at this issue.

Thanks!

I am over 59-1/2 and when I retired,I rolled my 401k into a traditional IRA. I am not working, thus no taxable income.

Can my IRA be rolled over to a Roth?

What are the advantages and will I have any tax obligation by doing so?

If an employer purchased an existing business in August, can he start a SIMPLE plan beginning in 1999? I know an employee must work two years to be eligible to participate, but I wasn't sure about a new business. Also, the business has locations in different cities. Must the employer offer the plan to the employees at all locations?

I just finished reading the article linked in the What's New section, and it reminds me of a debate I had with co-workers 20 and more years ago: should the regulations from ERISA governing qualified DB plans be applied to Social Security, including minimum funding, amoritzation of the unfunded liability, etc.? Ignore for the moment that we are not concerned with deductibility (though maybe we should be concerned? How about that, FICA employer portion as deductible contribution?).

Radical notions all; give your radical ideas or your reactions to them.

We have an employee of a client whose spouse must have special care during the day due to having alzheimer's disease. She was wondering what would happen if he got worse and had to go to a nursing home or if he got better and needed less care -- could she change her election? I told her that I didn't think that this would qualify as a change in status & that her original election would remain. Is this correct in both cases?

I would like feedback on the pros and cons of introducing a corporate vitamin

plan, whereby the company would supply

employees with factory fresh multi-vitamins

as part of the wellness program.

1998 calculations for quarterly payments were based on income excluding Roth conversion income. Will there be a tax penalty for underestimation of tax payments?

Hello all,

I am new first time father and would like to know if I can setup a Roth IRA for my child?