Roth Ira Answer Book, Sixth Edition / Edition 6

Roth Ira Answer Book, Sixth Edition / Edition 6

by Gary S.; Lesser, Michelle L. Ward, Gregory Kolojeski

ISBN-10: 0735584559

ISBN-13: 9780735584556

Pub. Date: 10/28/2009

Publisher: Wolters Kluwer Law & Business

Roth IRA Answer Book, Sixth Edition, provides an up-to-the-minute tutorial on this subject for a wide variety of professional markets, including pension consultants, insurance agents, financial planners and investment advisors, plan administrators, lawyers, and accountants, as well as businesses that promote, market, service, or provide technical support to

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Roth IRA Answer Book, Sixth Edition, provides an up-to-the-minute tutorial on this subject for a wide variety of professional markets, including pension consultants, insurance agents, financial planners and investment advisors, plan administrators, lawyers, and accountants, as well as businesses that promote, market, service, or provide technical support to retirement plans, products, and related services.

You'll find in-depth coverage of the administration and operation of a Roth IRA, as mandated by the Internal Revenue Code, Treasury regulations, and other IRS guidance. Written by a team of practicing experts preeminent in their fields, Roth IRA Answer Book takes the reader, step by step, through the creation, operation, and extinction of a Roth IRA.

Topics covered include the following:

How a Roth IRA is established, how documents are designated, and how a Roth IRA may be revoked

Trustee and custodian disclosure requirements and governmental form reporting requirements - Forms 1099-R, 5329, and 8606

Limits on contributions, including the contribution phase-out rules, and the definition of modified adjusted gross income (MAGI)

How the taxation of a Roth IRA distribution depends upon the source of funding for the amount distributed

How abusive transactions having the effect of shifting value from a preexisting business into a Roth IRA for less than fair market value may be challenged

How the contribution recovery rules under the ordering rules determine whether a Roth IRA distribution consists of annual contributions, conversions from an eligible retirement plan, other rollover contributions, or earnings

How to make and treat a rollover (conversion) from an eligible retirement plan to a Roth IRA

Which taxpayers will benefit most from a conversion, and when (especially in a declining investment environment) can a conversion be undone in a recharacterization

How Roth IRAs may be used to enhance overall wealth-transfer planning

The treatment of penalty-free distributions from an eligible retirement plan for special purposes, such as hurricane distributions, qualified recovery assistance distributions, qualified disaster recovery distributions, and qualified reservist distributions

How and when special-purpose distributions may be repaid (rolled over) to an eligible retirement plan, including a Roth IRA

And more!

Roth IRA Answer Book has been updated to include:

Discussion of the procedural guidance issued in December 2010 to drafters of pre-approved model and prototype IRAs and Roth IRAs, including rules for when documents must be submitted to the IRS

Explanation of the new procedures for applying to the IRS for an opinion letter

When the IRS lost an "abusive transaction" case

Analysis of the 2010 proposed regulations broadly redefining when a person is considered to be a "fiduciary" by reason of giving investment advice

The new in-plan Roth rollover rules and the guidance issued in Notice 2010-84 regarding the distribution and taxation of in-plan rollovers

The status of an inherited Roth IRA under evolving Federal Bankruptcy rules

Several new appendix charts have been added covering:

Rollovers by participants

Rollover of inherited assets

RMDs upon death of beneficiary

Distributions to beneficiaries

The extension of designated Roth contribution features to governmental 457(b) plans

Amendments to the definition of compensation to include differential wage payments

Recent law developments about whether a power of attorney is or is not effective to permit a participant's agent to name a beneficiary

How the law about IRAs' and other retirement plans' death benefits is sometimes similar to, but often quite differe

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Product Details

Wolters Kluwer Law & Business
Publication date:
Product dimensions:
7.20(w) x 10.20(h) x 1.70(d)

Table of Contents

1. Introduction to Roth IRAs

• Establishing a Roth IRA
• Model Roth IRA Documents
• Records Retention
• Revoking a Roth IRA
• Prototype Roth IRA Documents
• Prohibited Transactions and Related Definitions
• Miscellaneous Rules

2. Annual Contributions to a Roth IRA

• Limits on Annual Contributions
• Phaseout Rules
• Age and Plan Participant Status
• Annual Contribution Deadline
• Excess Contributions
• Tax Credits for Contributions
• Deemed Roth IRAs
• Payroll Deduction Roth IRA Programs

3. Conversion, Contribution Recharacterization, and Rollovers

• Conversion of Traditional IRA to Roth IRA
• Eligibility
• Taxation
• Valuing Annuity Contracts Converted to a Roth IRA
• Contribution Recharacterization
• Rollovers
• Deemed IRAs
• Rollover of Military Death Gratuities and SGLI Payments
• Rollover of Exxon Valdez Settlement
• Qualified Reservist Distribution Repayments
• Qualified Hurricane Distribution Repayments
• Qualified Recovery Assistance Distributions Repayments (Kansas Disaster Area)
• Qualified Disaster Recovery Assistance Distribution Repayments (Midwestern Disaster Areas)
• Rollover of Airline Payments

4. Voluntary Distributions

• Qualified Distributions
• Nonqualified Distributions
• Five-Year Exclusion Periods
• 10 Percent Premature Distribution Penalty
• Withholding
• Transfers Between Roth IRAs
• Transfers Incident to Divorce
• Deductions for Losses
• Demutualization
• Deemed Roth IRAs
• Qualified Roth IRA Contribution Programs (Designated Roth Contributions)

5. Required Minimum Distributions

• Five-Year Rule
• Beneficiaries
• Subsequent Beneficiaries
• Penalties
• Tax Matters
• Deemed Roth IRAs

6. Financial Planning

• The Basic Considerations
• Conversion Considerations
• State Law Considerations
• Inherited IRA
• Life Insurance to Pay Estate Tax

7. Roth IRA Trusts

• Drafting Considerations
• Roth IRA Trust Distribution Rules
• Generation-Skipping Trust
• Funding Clauses
• Disclaimers
• Taxation
• Permissible Transfer
• QTIPing a Roth IRA

8. Beneficiary Designations and Estate Planning

• Making a Beneficiary Designation
• Using Trusts
• Family Rights That Restrain a Beneficiary Designation
• Charitable Gifts
• Simultaneous Death; Absentees
• Marriage
• Spouse's Rights
• Disclaimers
• Government Claims
• Unclaimed Property
• Tax-Oriented Estate Planning
• Qualified Domestic Trust for an Alien
• Giving Advice

9. Required Reporting for Roth IRAs

• Reporting Roth IRA Contributions on Form 5498
• Information to Be Provided to IRA Owner (or Beneficiary)
• Deceased IRA Owner
• Recharacterization Contributions
• Revoked Roth IRAs
• Penalties
• Records Retention
• Reporting Roth IRA Distributions on Form 1099-R
• When Form 1099-R Is Not Used
• Conversion
• Recharacterization
• Revoked Roth IRAs
• Correcting1099-Forms
• Penalties
• Merger of Trustees and Custodians
• Records Retention
• Federal Income Tax Return (Form 8606)

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