The Treasury Department and the IRS issued temporary regulations and a proposed rule on August 19 designed to clarify the treatment of annuities when a traditional IRA is converted into a Roth IRA under section 408A of the IRC. When such conversions are made, the fair market value of the account is included in the individual's income as if were distributed, Treasury notes, but some taxpayers believed that amount should be the cash surrender value of the contract. Moreover, a number of annuities were designed to specifically suppress the amount of income that would be recognized upon conversion. The temporary regulation specifically states that the full fair market value must be included in income upon conversion, and provides standards for determining what is fair market value. The regulations are effective on transfer made on or after August 19.
ThinkAdvisor's TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business.
Consider the benefits of converting to a fee-based model, along with comparing it to a commission structure.
We've developed strategic and tactical workflows to help you get easy, flexible workflows to help you through most scenarios.
Let’s take a closer look at those risks and the potential impact they may have on a firm.
Dec 13, 2016
Join this complimentary webcast that will provide a deeper appreciation for these client segments and their needs, and show how advisors can offer protection and...
Dec 08, 2016
Join this complimentary webcast to hear best practices and next steps for operating effectively in the face of fiduciary regulations.
Nov 30, 2016
Join this complimentary webcast that will provide cybersecurity tips for compliantly protecting firm & client data.