PPC's Guide to Individual Retirement Accounts说明书

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LIST OF SUBSTANTIVE CHANGES AND ADDITIONS
PPC's Guide to Individual Retirement Accounts
Sixteenth Edition (June 2014)Highlights of this Edition
The following are some of the important update features for this edition.
IRA Rollovers. The T ax Court has ruled that taxpayers may have only one IRA rollover per year. In prior years,taxpayers were allowed one rollover for each IRA account. This provision does not affect rollovers from an employer retirement plan to an IRA. The Guide has been updated to reflect these new rollover restrictions. Inherited IRAs. The Supreme Court has ruled as to whether inherited IRAs are an eligible exempt asset in bankruptcy proceedings. This Guide has been updated for the additional planning opportunities required to ensure asset protection.
Circular 230. The IRS has revised the regulations under Circular 230, eliminating the concept of “covered opinions.” The Guide has been updated to reflect the new provisions relating to requirements for written advice. myRA Accounts. The federal government announced a new retirement vehicle called the myRA Account. This Guide has been updated to discuss this new vehicle and its requirements.
Rollovers as Business Start‐ups (ROBS). ROBS is a methodology in which the taxpayer uses a current retirement fund to fund a start‐up company. The Guide has added discussion on this concept, including cautions relating to potential pitfalls.
In addition to these featured items, your Guide includes the following update items detailed below.Chapter Substantive Changes and Additions Reference CHAPTER 1
A Model for T ax and
Financial Planning
Engagements
1.The IRS has issued new regulations under Circular 230,eliminating the complex rules for covered opinions.Section 108CHAPTER 2
Dealing with Traditional
IRAs 1.There are new reporting requirements for hard‐to‐value assets held by an IRA. An alert has been added on these requirements.
Section 2012.The T ax Court has ruled that taxpayers may have only one IRA rollover per year. The IRA checklist has been updated
to reflect this decision and a subsequent IRS Announce­
ment.
Appendix 2A
CHAPTER 3
Dealing with Roth IRAs 1. A new retirement savings account called the myRA will be introduced in 2014. Discussion has been added of the new
accounts.
Section 3022.When contributions are made to both traditional IRA and Roth IRA accounts, there are ordering rules to follow. This
edition notes these rules.
Section 303
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Chapter Reference
Substantive Changes and Additions
3.The decision in the Mazzei case, dealing with excise taxes
imposed on improperly shifting assets to a Roth IRA, has
been noted.
Section 303
4.An alert has been added regarding the Bobrow decision
and IRS Ann. 2014‐15, limiting IRA rollovers to one per
taxpayer per year, rather than one per account per year.
Section 307
5.T axpayers may make in‐plan Roth rollovers from a qualified
plan to a designated Roth account. Discussion of this type
of rollover has been added.
Section 310
CHAPTER 4
Dealing with SEPs,
SARSEPs, SIMPLE IRAs
and Payroll Deduction
IRAs 1.Regs. 1.1401‐1 and 31.3101‐2 relating to the 0.9% addi­
tional Medicare tax were finalized. This additional tax affects
individuals with earned income in excess of $200,000
($250,000 if married filing joint or $125,000 if married filing
separately).
Sections 404
and 412
CHAPTER 5
Comparing Types of
IRAs 1. A planning tip has been added regarding using Roth IRAs,
rather than traditional IRAs, to avoid either additional tax on
social security benefits or the 3.8% net investment income
tax, depending on taxpayer’s circumstances.
Section 501
2.The comparison of SEPs and SIMPLE IRA plans has been
revised.
Appendix 5B
CHAPTER 6
Planning for
Distributions 1.Examples have been added showing how traditional IRA
distributions can adversely affect a taxpayer’s income tax
liability due to subjecting additional income to the 3.8% net
investment income tax or causing additional social security
benefits to become subject to tax.
Section 602
2. A planning tip has been added discussing the benefit of
converting a traditional IRA in a loss situation into a qualified
tuition plan.
Section 602
3.Noted that inherited IRAs are not eligible for exemption in
bankruptcy.
Section 602
4.The ability to make a tax‐free qualified charitable distribution
from an IRA expired at the end of 2013.
Section 602
5.An example has been added showing that a qualified Roth
IRA distribution has no effect on 3.8% NIIT.
Section 603
6.An example has been added demonstrating when it may be
better to claim the initial MRD in the year the taxpayer turns
age 701/2, and when it may be better to delay the distribution
until April 1 of the following year.
Section 607
7.The final regulations affecting the purchase of longevity
annuities have been finalized. The Guide has been updated
to reflect the guidance concerning these regulations.
Section 607
8.The Roberts case, in which taxpayer’s estranged wife
forged distribution requests and check endorsements to
obtain funds from the taxpayer’s IRA without his knowledge,
is discussed.
Section 608
Chapter Reference
Substantive Changes and Additions
CHAPTER 7
Planning for Rollovers 1.The Bobrow case and IRS. Ann. 2014‐15 affect the ability to
make one IRA rollover per taxpayer per year, rather than per
IRA account. The Guide has been updated to reflect these
more stringent rules.
Sections 700
and 702
2. A caution has been added regarding the possibility of a tax
planner being considered a fiduciary of an IRA account.
Section 700
3.Rollovers as Business Start‐ups (ROBS) are being recom­
mended as a method to use the assets in a retirement fund
to invest in a start‐up business. The Guide has added
discussion of ROBS, including the potential pitfalls.
Section 702
4.New situations in which the IRS granted a waiver of the
60‐day rollover period have been added.
Appendix 7B
CHAPTER 9
Dealing with
Compliance 1.The Ellis case, in which a corporation owned by a
self‐directed IRA was prohibited from paying the owner of
the IRA a salary, is discussed.
Section 901
2.An IRA may be subject to income taxation as a trust if
invested in certain type assets. The Guide discusses this
potential for income tax on unrelated business taxable
income (UBTI).
Section 902
CHAPTER 10
Fitting IRA Assets into
an Estate Plan 1.An IRA may have the taxpayer’s estate become its
beneficiary, either through being named or by default
because another beneficiary was not named. This edition
of the Guide clarifies discussion of what happens to IRA
assets upon the owner’s death if this occurs.
Section 1001
2. A recent Supreme Court decision clarified whether inherited
IRAs are “exempt assets” for bankruptcy protection. The
Guide discusses the ramifications of this decision.
Section 1008
3.Discussion of whether minimum required distributions and
hardship distributions are protected in bankruptcy has
been expanded.
Section 1008
CHAPTER 11
Marketing IRA
Retirement Plan
Services 1.An example has been added demonstrating the cost of a
direct mail marketing campaign.
Section 1102
2.The AICPA will be issuing a revised Code of Professional
Conduct in December 2014.
Section 1105。