What would you suggest someone do if they expect their 1998 AGI might exceed $100,000 and they have already converted a tradional IRA to a Roth IRA in 1998. In this case, the person undid their initial conversion and reconverted after 11/1/98, thus maxing out their conversion limits for 1998.

As a teacher for the NYC Board of Education I contribute to the TSA Program offered by the Teachers' Retirement System of the City of New York. The TRS IS THE SOLE 403(b)CARRIER FOR THE CITY'S TEACHERS. The Union wants it this way because it controls 3 of the 7 votes on the TEACHERS' RETIREMENT BOARD.The investment choices are: I. An 8.25% guaranteed return. II. A Variable A Fund for investment in a broad range of common stock. and III. A Variable B Fund for investment in stocks and bonds. Investment elections are allowed only once per year. Exchanges can only be made in 1/12 installments over a year. Will a lawsuit that asks for more investment choices and improvement in the exchange policy succeed?

[This message has been edited by joel (edited 12-10-98).]

At our company we accrue vacation pay each payroll. For new employees we have a 6 month waiting time until vacation can be taken. If an employee leaves before that 6 months, are they entitled to their accrued vacation, even though it is before the 6 month waiting time?

Thanks.

Say a doctor (of course) terminated her DBPP back in 1987 because it was fully funded. This year, doctor was divorced and the spouse received 60 percent of plan assets (now in rollover IRA). Question: Doctor clearly no longer has assets equal to benefit projected back in 1987 -- can she start a new DBPP plan this year and start trying to make up what was lost to spouse?

Our company is in search of a company in California that could provide check writing srvices for a client of ours. The checks would be on the client's retirees and the firm in California would need to handle the withholding and etc. Does anyone know of such a company located in California that could help us please?

I am 72 and retired. I have Iras totalling about 110,000. Is it really to my advantage to convert these iras to Roth? I can not seem to fine=d a clear answer anywhere.

I want to convert my conventional IRA to a Roth. Is the conversion considered earned income? I've had a lot of investment gains on the IRA, so much of the total is actually investment income. Can this be reduced by passive losses? Also, some of my IRA contributions were after tax income, so I've already paid tax on that and reported in previous years on form 8606. Can I exclude those amounts from taxes due on the conversion?

Our company sponsors a prototype SEP plan. The Plan specifically states that an adopting employer who previously sponsored an now-terminated defined benefit plan may not rely on the IRS approval letter that is part of the prototype. Such an employer would need to file the plan as an individually-designed plan in order to receive a letter.

Does anyone know if there are any special procedures to do this that are different from those which apply to qualified plans? Also, does anyone know the IRS's rationale for this position?

Thanks for the help!

In terminating a plan that has ee contributions, we are purchasing ann'ys from an insurance company.

Is it required (after the date of term.) to continue with the fancy method of crediting interest (i.e., 120% of apr), or can the insurance company switch at that point to its own (simpler) methodology?

Any guidance w/b appreciated/thx/David

A 401(k)plan had an employee listed as eligible in the year after he should have been included (should have been included in 1997, was included in 1998). The only contributions for 1997 and 1998 were salary deferrals (no match, no top-heavy, etc). The employee did to defer in 1998.

How would the employer self-correct? Does he offer the employee the option of making a 1997 contribution?

Does anyone have a good explanation (with examples) of the distinction between constructive receipt and economic benefit?

One of my clients has asked me about a method of calculating minimum distributions in which the IRA is somehow split between the husband (IRA owner) and wife (beneficiary) and separate calcs are done on each part. Apparently, as he understands it, you could use joint life expectancy for his portion and single life expectancy for his wife.

I've never heard of this and asked him to send me the information he received from his source describing this method. Has anyone heard of this?

I have a basic question. Does a Form 990 or some other form need to be filed for a section 457 trust for a governmental plan?

Does a traditional IRA to Roth Conversion have to be completed by 12/31/98, or started by, to qualify for the 4 yr installmt plan? I've seen both explanations.

I have after tax money that made into the 401(K) plan since I exceeded the allowed pre-tax amount. Is there a way to take this money out and put it into a Roth IRA?

Thanks

We married in 1995 and have been filing separate returns since then because the tax burden is lower. I understand to qualify for a Roth we have to file a joint return. I anticipate that by the end of 1998, our AGI will be just under $100,000 but it will likely exceed that in 1999 and thereafter. I have a traditional IRA that has only about $26,000 in it; my wife has an IRA but I do not know its value. Would we have to file a joint return for 1998 income to be eligible for a Roth? If so, we will pay more in taxes. Would we then be better off converting already existing traditional IRAs to Roths or keeping the traditional ones, stop making contributions and open new Roths? By the way, my IRA was opened when they first started and the contributions were deductable. I made contributions to it in 1997 and 1998 but they were not deductable. What to do, what to do?

Can a Roth conversion done in December 1998 be partially reversed in 1999 ( prior to the due date of the tax return) when it is determined how much the taxpayer wishes to actually convert and pay tax on?? If yes, is there a restriction on which assets can be transferred back to the original IRA?

What to do if a participant defers 20% and the plan is top heavy? The document says that, in order not to have an excess allocation, 'er contributions are reduced. Does this mean the participant does not get a top heavy contribution?

A client wants to adopt a formal waiver program to pay employees for not electing company coverage. My research indicates that a formal Section 125 plan with language specific to this program must be adopted. Can someone either provide me with a prototype document or lead to an organization that will not rob the bank. The first firm I approached would charge $1000 for an 100 employee company. Thanks for your help. You can feel free to call me at 609-778-4600 ext 119.

A company offered an enhanced early retirement program effective 2/1/97 - for ee's age 50 + with 5 years service. The retirement was enhanced 5+ years on age and service. Senior executives were not eligible.

In Aug 1997, company announces that it will liquidate in 1999. In 1998, a sale of assets document indicated that 2 officers will be given an early retirement like the one offered in 1997. (These were the same executives who were deemed not eligible in 1997 ) No offer was made to any other age 50 + who turned 50 subsequent to 1997. The 2 officers are also plan fiduciaries. Can plan fiduciaries set up an early retirement plan just for themselves??? Are there any requirements that an early retirement must also be offered to others similarly situated (others now age 50). Can excluded employees be retroactively offered an early retirement under an early retirement program where they were specifically excluded?. What if it's a new program(in '98 or '99) but only for those 50 as of 2/1/97. What if it was known in 1997 that the company might be liquidated and the officers were told that if anything happens, they'll get the early retirement (and the heck with the ones who turn 50 after 2/1/97). What if the officers weren't told, but someone decided that's what the plan would do. Is there any ruling that would require the company to also offer early retirement to others similarly situated. There has been a precedence that for every layoff there was an early retirement, now that there is the ultimate layoff, they are not offering ER to last group of 50+.. The pension is overfunded, although not enough to cover a last early retirement without additional contributions. The company has not contributed to fund in years. There is money available if they really wanted to offer it but they say it's too late. Any info or comments would be appreciated.