The IRS announced that it will amend the Sec. 401(a)(9) required minimum distribution regulations to prohibit the use of lump-sum payments to replace annuity payments in defined benefit plans.
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Types & Qualifications
Defined Benefit Plans to Be Prohibited From Replacing Annuities With Lump-Sum Payments
The IRS announced that it will amend the Sec. 401(a)(9) required minimum distribution regulations to prohibit the use of lump-sum payments to replace annuity payments in defined benefit plans.
Problems That Arise When Individuals on Overseas Assignments Participate in U.S. Qualified Plans
Issues can arise when employers let U.S. nationals and foreign nationals participate in U.S. qualified benefit plans when on overseas assignments.
How the New One-a-Year IRA Rollover Rule Applies
The IRS clarified how the change in the way it interprets the statutory one-rollover-per-year rule for individual retirement arrangements affected 2014 rollovers and how the rules apply in 2015.
Deferred Annuities in Defined Contribution Plans Can Be Offered to Older Participants
Qualified defined contribution plans will be allowed to provide lifetime income to plan participants by offering funds including deferred annuities among their assets, even if some of the funds are available only to older plan participants.
IRS Fills in Details of One-a-Year IRA Rollover Rule
The IRS clarified how the recently announced change in how it interprets the statutory one-rollover-per-year rule for IRAs will affect 2014 rollovers and how the rules will apply starting in 2015.
Defined Contribution Plans Can Offer Deferred Annuities to Older Participants
Qualified defined contribution plans will be allowed to provide lifetime income to plan participants by offering funds including deferred annuities among their assets, even if some of the funds are available only to older plan participants.
Changes Proposed to Allocation Rules for Rollovers
The IRS provided rules on how to allocate pre- and after-tax amounts distributed from IRAs, including Roth IRAs, to multiple destinations.
Regulations Update Hybrid Defined Benefit Plan Rules
The IRS released final and proposed regulations providing guidance on so-called hybrid defined benefit pension plans.
One-IRA-Rollover-a-Year Rule Will Be Effective in 2015, IRS Says
The IRS withdrew proposed regulations that provided that the one-rollover-per-year rule for IRAs applies on an IRA-by-IRA basis.
IRA, Qualified Plan Participants Can Purchase Longevity Annuities
Final regulations issued permit IRA and qualified plan participants to enter into longevity annuities, using a certain amount of their account balances, without having these amounts count for calculating required minimum distributions.
Supreme Court Holds Inherited IRAs Are Not Retirement Funds
The U.S. Supreme Court held that funds from an inherited IRA were not retirement funds that were exempt from the debtor’s bankruptcy estate.
IRS Will Follow the Tax Court on One-IRA-Rollover-per-Year Rule
To settle the question of whether the limitation on rolling over one IRA per year under Sec. 408(d)(3)(B) applies to taxpayers on an aggregate basis or on an IRA-by-IRA basis, the IRS announced it will follow the a recent Tax Court’s recent decision, applying the rule on an aggregate basis, meaning no matter how many IRAs a taxpayer has, the taxpayer is limited to one rollover per year.
Ellis, the Case of a Misdirected IRA
Potential entrepreneurs need to be aware of the tax complexities of using retirement funds as startup capital.
Second Rollover Is Taxable
The Tax Court held that where a taxpayer distributed and within 60 days repaid funds from two separate IRAs within a one-year period, only the first distribution and repayment was a nontaxable rollover.
IRA Rollover Guidance Issued: IRS Will Follow the Tax Court
The IRS announced it will follow the recent decision in Bobrow, meaning no matter how many IRAs a taxpayer has, the taxpayer is limited to one IRA rollover per year.
In-Plan Rollovers to Roth Accounts
The IRS released rules in question-and-answer format for in-plan rollovers to designated Roth accounts in retirement plans.
Midyear Changes to Employer Contributions to 401(k) Plans Allowed
The IRS issued final regulations that permit employers to make midyear reductions or suspensions of safe-harbor matching or nonelective contributions to retirement plans in certain situations.
Regs. Permit Midyear Changes to Employer Contributions 401(k) Plans
The IRS issued final regulations that permit employers to make midyear reductions or suspensions of safe-harbor matching or nonelective contributions to retirement plans in certain situations.
Loan Guarantees Were Prohibited Transactions That Disqualified IRAs
The Tax Court held that the taxpayers’ guarantees of a loan made to a company owned by the taxpayers’ IRAs were prohibited transactions that caused the accounts to cease to be IRAs.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
