The IRS recently published new guidance on the tax withholding and reporting consequences associated with qualified retirement plan distributions to state unclaimed property funds. In Revenue Ruling 2020-24, the IRS clarified that distributions from qualified retirement plans to state unclaimed property funds are subject to both federal income tax withholding and 1099-R reporting requirements. In … Continue Reading
White House budget proposal released earlier this year would eliminate several methods used by certain taxpayers to convert after-tax contributions into Roth amounts. Although such a change would likely require congressional action, taxpayers who use or are considering these methods should be mindful of the proposed change.… Continue Reading
The IRS has published a final regulation that allows defined contribution plans to offer longevity annuities commencing as late as age 85. Although the final regulation is similar to the rule proposed in 2012, the IRS has made some welcome improvements in response to public comments. The final regulation is effective for annuities purchased after … Continue Reading
As many of you have no doubt heard, President Obama introduced a new retirement savings vehicle, known as a myRA, in his State of the Union address. At first blush, the program appears aimed exclusively at employees with no company-sponsored retirement plan and therefore of little interest to employers with sophisticated retirement programs already in … Continue Reading
