QUALIFIED ACCOUNT RULING UPDATES
For those of you with qualified retirement accounts, this information may be helpful. If you have any specific questions as they might relate to your investments, please give me a call:
- Plan participants no longer need to be able to take a distribution from their plans in order to make in-plan Roth conversions (ATRA).
- Income and estate tax plans must be reevaluated post-ATRA.
- The Federal Government must recognize same-sex marriages if those couples were married in jurisdictions recognizing such marriages. As a result, legally married same- sex spousal beneficiaries now have the same post-death IRA options as traditional spousal beneficiaries (Windsor).
- The U.S. Supreme Court has agreed to hear a case to decide whether or not inherited IRAs are protected in bankruptcy (Clark).
- Personal guarantees of loans made to IRAs disqualified those accounts (Peek and Fleck).
- Payments to an IRA owner for services performed for a company owned by the IRA disqualified the IRA (Ellis).
- Failure to properly waive spousal rights led to a soon-to-be ex-wife getting 401(k) funds that had been intended for other beneficiaries (MidAmerican Pension…).
- IRS has created additional reporting obligations for hard-to-value IRA assets. The reporting will be optional for 2014 but will be mandatory in 2015 and beyond.
- A custodian’s refusal to accept REIT investments led to a modification of 72(t) payments (PLR 201323045).
- A taxpayer was allowed to make-up a missed 72(t) distribution in order to avoid a modification (PLR 201309020).
- A taxpayer who received a distribution of his pension plan assets was allowed to complete a late 60-day rollover because the plan failed to provide the required notification (PLR 201308037)
- Two estates were allowed to transfer inherited IRAs to estate beneficiaries in-kind, allowing the estates to be closed while still preserving the tax-deferral of the inherited accounts (PLR 201338028 & PLR 201318033).
Source: Ed Slott