TITLE

IRAs: New Minimum Distributions Rules Allow Planning Opportunities

AUTHOR(S)
Shanney-Saborsky, Regina
PUB. DATE
June 1998
SOURCE
Journal of Financial Planning;Jun98, Vol. 11 Issue 3, p28
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article discusses new proposed regulations issued by the U.S. Internal Revenue Service (IRS), in the form of amendments and clarifications to the existing proposed regulations under Section 401(a)(9) of the Internal Revenue Code, as of June 1998. The new proposed regulations clearly indicate the position of the IRS that a revocable trust can be a designated beneficiary for purposes of the minimum distribution rules applicable to qualified retirement plans and individual retirement accounts (IRA). From the financial planning perspective, although seemingly narrow in scope, the new rules conceptually address the permitted use of a revocable trust, the spousal consent requirements applicable to distributions and the significance of the beneficiary designation form used by qualified plan consultants and IRA custodians. The new proposed regulations permit minimum distributions to the typical revocable trust used by financial planning professionals and provides informational disclosure requirements that can provide guidance, in general, for both beneficiary designations in the retirement arena. Participants also can satisfy the information requirement with a certified list of all beneficiaries, and a description of the interests of each beneficiary. The availability of the revocable trust as the designated beneficiary for minimum distribution purposes should focus the professional advisor on reviewing not only the dispositive provisions in the traditional wills and trusts used for estate planning purposes, but the beneficiary designations for any qualified plan or IRA to ensure that the ultimate beneficiary is identifiable. Finally, financial planners may want to evaluate the potential ability to use these provisions on a retroactive basis.
ACCESSION #
769226

 

Related Articles

  • Rise in 401(k) contribution limits helping to rescue retirement incomes. Tramer, Harriet // Crain's Cleveland Business;6/27/2005, Vol. 26 Issue 26, p17 

    This article reports that U.S. Internal Revenue Service (IRS) changes that recently went into effect boosted the amount employees can contribute to their 401(k) plans and raised the "catch-up" contributions, or supplemental sums, that people older than 50 can make. The Economic Growth and Tax...

  • STAT BANK.  // Journal of Financial Planning;Aug2006, Vol. 19 Issue 8, p11 

    The article presents statistics relevant to financial planning and the economy in the United States. The Wall Street Journal reports that 33.4% of the nation's wealth belongs to the wealthiest 1% of Americans. In 2005, 39.9% of real estate purchases were for second homes, according to the...

  • Deadline for Reforming Impermissible Suspension of Benefits Provisions is Extended. Miller, Stephen R.; Moore, Tonya W.; Solomon, Todd // Venulex Legal Summaries;2006 Q1, p1 

    The article provides information on the deadline allotted by the U.S. Internal Revenue Service (IRS) to retirement plan sponsors in the U.S. to comply with Revenue Procedure 2005-76. A sponsor of a tax-qualified retirement plan must amend any impermissible suspension of benefits provisions and...

  • 10 years ago in the Profession.  // Journal of Financial Planning;Mar2002, Vol. 15 Issue 3, p21 

    The article provides information about the financial planning profession in the past years in the U.S. "Money" magazine asserted that financial planners were the second-best paid professionals across the country, averaging at $144,000 per year. However, the International Association for...

  • A New Recipe for Life Insurance Valuation. Katt, Peter C. // Journal of Financial Planning;Mar2007, Vol. 20 Issue 3, p36 

    The article discusses methods for financial planners to value life insurance policies that are distributed from qualified retirement plans. Regulations issued by the United States Treasury in August 2005 under Internal Revenue Code Section 402(a) provide taxpayers with safe-harbor values for...

  • The New 403(b): Plan Design in Light of New Regulations Post-1/1/09. Friedman, Aaron // Benefits Quarterly;2009 Fourth Quarter, Vol. 25 Issue 4, p30 

    It's a whole new world for 403(b) plans. Many nonprofit retirement plan sponsors are scrambling to figure out how to make their 403(b) plans comply with new Internal Revenue Service regulations and guidance. This is a complex undertaking and represents sweeping changes for 403(b) plan sponsors....

  • Who Really Has the Burden of Proof in a Civil Dispute with the IRS? Cash, L. Stephen; Dickens, Thomas L.; Vaughn, Virginia Ward; Curatola, Anthony P. // Strategic Finance;Mar2001, Vol. 82 Issue 9, p16 

    The article focuses on Internal Revenue Code Section 7491 of the IRS Restructuring and Reform Act of 1998 in the United States. The author presents an establishment of who has the burden of proof in court proceedings involving tax matters. A discussion is presented about the section's alleged...

  • The HIRE Act. Sanna, Dina Kapur // Trusts & Estates;Mar2012, Vol. 151 Issue 3, p42 

    The article discusses the U.S. Hiring Incentives to Restore Employment Act (HIRE Act) of 2010 and the obligation of U.S. beneficiaries foreign trusts to abide by the HIRE Act's disclosure rules. The HIRE Act, which can be found in Section 6038D of the U.S. Internal Revenue Service (IRS) Code,...

  • Internal Legal Memorandum 201327009.  // Trusts & Estates;Jan2014 Tex Year Review Supplement, p15 

    The article discusses the U.S. Internal Revenue Service's release of Internal Legal Memorandum 201327009 on May 1, 2013 which states that a qualified subchapter S trust (QSST) beneficiary is entitled to deduct interest payments made by the QSST. According to the article, a QSST purchased S...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics