Taxation of Individual Retirement Accounts comprehensively analyzes all the tax laws applicable to individual retirement accounts.
The first part of the book discusses the 15 different types of IRAs, including the four most recent types authorized by the tax laws: the Roth IRA, the education IRA, the SIMPLE IRA, and the deemed IRA.
The second part discusses the various areas of tax law relating to the operation and administration of an IRA. There is a separate chapter on each area of the tax law.
The third part of the book deals with taxation of distributions from an IRA, including premature distributions, minimum distributions during lifetime and after death, withholding taxes, and estate taxes. It also deals with the tax rules applicable to the different types of the beneficiaries receiving distributions from an IRA, including foreign beneficiaries, charitable beneficiaries, trust beneficiaries, estate beneficiaries, spouse and nonspouse beneficiaries, and individual and non-individual beneficiaries.
Benefits and Features
2011 HIGHLIGHTS
- The book was updated for changes made by the Patient Protection and Affordable Care Act of 2010, the Health Care and Education Affordability Reconciliation Act of 2010, the Tax and Pension Provisions of the Small Business Jobs Act of 2010, and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
- The new contribution and deduction limits for 2011 for the 15 different types of IRAs were added to Chapter 1 through 16.
- Section 2.07[D] was updated regarding the 2010 ruling by the IRS on losses in an IRA.
- Section 4.05 updates the rules issued by the IRS on rollovers from a qualified employer plan to a Roth IRA.
- Section 4.06[A] was added regarding the reasons for a conversion from a traditional IRA to a Roth IRA.
- Section 4.08[E] was added regarding the aggregation rules for multiple Roth IRAs.
- Section 4.09[A][3] was added regarding the five-year holding period for conversions and rollovers.
- Section 4.09[B] was revised regarding the order of distributions from a Roth IRA, and the determination of the taxable amount on nonqualified distributions.
- Section 4.14[D] was added regarding the Roth Section 401(k) account and the differences from a regular Roth IRA.
- Section 5.04 was updated regarding permissible contributions to an education IRA during 2011 and 2012 under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, including coordination with the HOPE and Lifetime Learning Credits, and the Section 529 Qualified Tuition Programs.
- Section 5.04[E] was updated regarding the new phaseout limits for contributions to an education IRA under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
- Section 6.03[C] sets forth the ordering rules for required minimum distributions and the determination of the amount that may be rolled over through the end of the calendar year.
- Section 6.03[D] was updated regarding the 60-day direct rollover rule and the rulings in 2010 and 2011 on the requirements for obtaining a waiver from the IRS for a late rollover to an IRA after the expiration of the 60-day rollover period.
- Sections 6.11 and 6.12 were updated regarding rollovers from other qualified employer plans into an IRA.
- Section 6.16 was added regarding the rules applicable beginning in 2010 for rollovers by nonspouse beneficiaries on the death of the IRA owner.
- Section 6.20 was added regarding special case rollover contribution rules, such as rollovers on account of Hurricane Katrina, qualified reservist distributions, bankruptcy payments, military death gratuities, and distributions after natural disasters.
- Section 8.07 was added regarding the requirements for an inherited IRA, the notice requirements, and the rules for making a rollover to an inherited IRA by a nonspouse beneficiary.
- Section 9.06[B] was updated regarding adoption rules for an SEP IRA.
- Section 15.05[A][2] discusses the new requirements for making catch-up contributions to a SIMPLE IRA.
- Section 17.02 discusses the new IRS and Labor Department rulings issued in 2010 on prohibited transactions.
- Section 17.02[R] was added regarding the ownership of an LLC through an IRA.
- Section 17.04 discusses the new prohibited transaction rulings applicable to Roth IRAs.
- Section 19.06 discusses the new requirements for group trusts and the investment of IRA assets in group trusts under Revenue Ruling 2011-1.
- Section 20.02[B] discusses the case law in 2010 limiting the exclusion for IRAs in bankruptcy proceedings. Section 20.02[C] was updated regarding the availability of bankruptcy exemption under Section 522(d)(12).
- Section 20.03[A] was updated regarding the rulings on the right of the IRS to levy on the assets in an IRA.
- Section 24.03[B] was updated regarding the procedures issued by the IRS in 2010 on amendments to prototype and model IRAs to comply with the 17 statutory changes affecting IRAs adopted by Congress between 2002 and 2010.
- Section 24.05[F] was updated regarding the requirements for individual retirement annuities, and for a determination letter submitted after December 13, 2010.
- Section 27.02 was updated regarding state laws on the taxation of IRA distributions paid to residents of other states, and the taxation of distributions to residents in the state for IRA funds earned in a foreign state.
- Section 29.03[C] discusses the new estate tax rules applicable to IRA contributions and distributions.
- Section 29.06 was updated regarding the loss deduction rules for IRAs that have declined in value.
- Chapter 30 was updated regarding the cases and rulings on premature distributions and exceptions from the premature distribution tax for distributions prior to attainment of age 59½, including distributions as a result of an IRS levy or notice of intent to levy.
- Section 30.02[F] was revised regarding the taxation of transfers to a spouse incident to a divorce.
- Section 32.03 was updated regarding the 2010 cases and rulings on rollovers by a surviving spouse, and the election to take as owner or beneficiary.
- Section 32.09 was updated regarding the private letter rulings on separate share accounts, sub-IRAs, and sub-IRA trusts, including required minimum distributions after establishing such accounts.
- Section 34.02[B][3][d] was added regarding the withholding tax rules that apply to distributions to Canadian residents.
- Section 34.05 was added regarding the 2010 ruling issued by the IRS regarding the taxation of IRA distributions to U.S. citizens living in a foreign country, the requirement to pay taxes in both the United States and the foreign country on IRA distributions despite any contrary provisions in the U.S.-foreign tax treaty, and the procedures for claiming a foreign tax credit if there is a treaty in effect.
- Section 35.03[A] was updated regarding the required minimum distribution rules for IRA distributions received through an estate.
- Section 35.04 was updated regarding rulings on estate beneficiaries and rollovers by spouse beneficiaries.
- Section 35.07 was updated regarding the rulings on the requirements for making a qualified disclaimer of IRA benefits.
- Chapter 36 was updated regarding the new rulings on allocations to living trusts for estate planning purposes, see-through trusts, rollovers by the surviving spouse, and distribution options by spouse and nonspouse beneficiaries on the death of the IRA owner.
- Section 36.05[A] was updated regarding the right of a surviving spouse to roll over distributions from an inherited IRA if the surviving spouse is not the sole beneficiary of a trust that is the designated beneficiary.
- Section 37.02 was updated for the changes made by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 with respect to charitable contributions from an IRA.
- Section 37.04 was updated regarding the rulings on the assignment of IRA assets to a charity, including the income in respect of a decedent rules, and the taxation to the IRA or estate making the assignment.
- Section 38.06 was updated regarding the cases and rulings on the right of a spouse or former spouse to IRA assets in divorce proceedings.
- Section 39.03[C] was updated regarding the private letter rulings on computations of income in respect of the decedent on the death of the IRA owner.
- Chapter 39 updates the rulings on estate planning for IRA distributions, including the computations of the generation skipping tax.
