Can an investment company charge IRAs with small accounts ($500 or less) an annual fee without imposing an annual fee on larger accounts? Cite would be helpful.

christine, a rastafarian rabbi trust is simply a rabbi trust that is offshore (out of the united states). The theory is that being out of the united states provides an added layer of protection even against bankruptcy. Not really clear if it works or whether the IRS thinks it works, but I think that's the general concept.

Trying to evaluate advantages to establishing one or the other. Anybody seen an article or have some info. to share?

Thx,

Webster

Can I transfer stock in amount of $500. to a Roth Educational IRA for a grandchild?

I recently converted a traditional IRA to a Roth IRA. A broker is the current custodian of this account. I have some shares of stock that I have purchased through a couple of different DRIP programs, and also some shares of mutual funds I've purchased through the years through no-load companies. All of these securities are held in regular, taxable accounts. I am trying to determine if it is possible to transfer any of these securities into my newly converted Roth. Is my only option to liquidate these accounts and transfer the cash to the Roth?

We have less than 100 employees and recently changed insurance plans. The new plan has less counseling benefits than the previous plan and we have had someone under constant care for a long period of time. My question is there any way to provide the difference in benefits (approximately $4000/yr) to the employee without tax.

Im 46 and have a Traditional IRA which I will not be converting because 1) I will be in a lower tax bracket when I retire, 2) I dont have the money to pay the taxes and 3) financial aid for college would be affected.

My question is: do I continues to add to my traditional IRA or should I open a Roth IRA and add to that yearly?

The Roth IRA Answer Book (Panel Publishers, NYC) will be available in January. The Book contains over 450 Q&As and numerous appendices (charts, tables, and so on). For additional information, contact Panel Publishers at 1-800-901-9075.

Has anyone any thoughts (citations appreciated)on whether an executor or executrix can convert a traditional IRA into a Roth IRA on behalf of the deceased? Would the answer change if the executor(trix)were not the beneficiary of the tradirtional IRA?

When do Section 125 Premium Only Plan Documents need to be amended for Treas Reg 1.125-4T?

Also, we would like to start offering Section 125 Premium Only Plan installation and administration service. Does anyone have a source for Plan Documents?

An employer maintains a NQDC plan. The employer has also establisged a rabbi trust. Currently insurance contracts are held by a trust company and employer pats trust company a custodial fee. Employer is interested in either (i) taking physical control of life insurance policies or (ii) permitting its law firm to take physical control of insurance policies. Is this ok? Any thoughts? Tanks. Ed

Any drafting tips for a trust which will be the designated beneficiary of an IRA and Roth IRA?

I need drafting tips for a qualified trust which will be the designated beneficiary of a IRA and Roth IRA. Please advise.

I have an approved disability claim. Coverage paid by employer. Plan book says I am entitled to 60% of my income. Employer reported income that is $40,000.00 short of what my income was and paid a premium based on the wrong income that is $40k lowere than actual. Carrier says its employers problem and employer says I have to deal with carrier. The monthly benefit difference is substantial. Question: As a group plan, isn't the "plan" responsible to pay in accordance to the "Plan" regardless of administrative error in reporting less income than I really had?

Here's the situation:

1) An employee signs a deferral election six months in advance of his eligibility date.

2) The personnel department files the election and then fails to put it into effect when he becomes eligible to defer.

3) In 1996 and 1997 the employee receives a statement from the plan showing a Profit Sharing allocation but no elective deferrals or employer matching contributions. He also receives W-2 forms for both years showing no 401(k) deferrals and his pay stubs also indicate no 401(k) deferrals.

3) In October, 1998 the employee finally notices that no deferrals are being taken and asks the personnel department for an explanation. Upon review, personnel advises him that they erred in not placing his 1995 election into effect, and that they will permit him to defer as much as possible with an equivalent match to the legal limit in order to "catch up" the contribution.

4) Employee responds with the threat of a lawsuit.

Is there some point where the responsibility for this shifts to the employee? He did, after all, receive paystubs for 2 1/2 years which clearly indicated no withholding, he received statements of account and w-2 forms for 2 years and didn't notice until the end of the third year.

Is this all the employer's responsibility? What is a reasonable period of time to elapse before the employee shares some of it?

Is there anything to prevent one from contributing to a regular IRA (say $2000) in '98, then converting it to a Roth. This would appear to allow a '98 deduction for the IRA contribution ($2000) while only requiring an add-back to income of $500 in '98. Of course, you'd have to add $500 to income in each of the three subsequent years.

An individual (Mr. X) has two businesses.

Business #1 is set up as a sole proprietorship, with a 1040 Schedule C. No other employees other than himself.

Business #2 is set up as a corporation (Corporation M), with Mr. X as the sole employee.

He is setting up a 25% Money Purchase Plan. How can he set up the plan so that income from both the sole prop as well as his W2 salary from Corporation X is included for determining his contribution.

(Of course, the $160,000 pay limit applies to both businesses combined.)

If the plan covers both businesses, what EIN is used for the 5500 filing? If the total earnings exceeds $160,000, which business takes which deduction?

Ideas? Thanks..

When recharacterizing a Roth IRA back to a Traditional IRA, what distribution code is used on the 1099-R?

An employee went on workers' compensation during February of 1998. The plan provides that only employees actively employed on December 31, 1998 are entitled to receive an allocation. Is the employee entitled to receive a proportionate share of the employer profit sharing allocation?

My initial thought is provided the employee has not officially terminated employment he is eligible to receive a share of the employer profit sharing allocation. That contribution would, however, only be based on the compensation received by the employee prior to the date he went out on workers' compensation.

Any thoughts?

What about a 23-year-old adult, U.S. citizen who is working for a foreign company outside the United States for all of 1998 and earns overseas more than $2,000 but below the amount that would trigger any U.S. tax liability on earnings. As a result, the wages are not subject to U.S. tax and not included in AGI on the individual's 1040. (This person still files a U.S. tax return because of some interest, dividends and capital gains.) Assume further that AGI (both as reported and adjusted to include overseas earnings) is low enough that this person could clearly set up a traditional IRA or a Roth IRA if the wages had been earned in the U.S.

Question: Can this person make a 1998 contribution of $2,000 to either a Roth IRA

or a traditional IRA?