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.
Part I of a series of articles on working with ultra-high-net-worth clients from IMCA's Investments & Wealth Monitor take a look at generational differences in...
Access complimentary resources from Cambridge Investments to help navigate the fiduciary rule changes.
If you’re thinking of changing broker-dealers, you owe it to yourself to read this article that covers all major aspects of the transition process.
Sep 27, 2016
Some broker-dealers have already decided to exit certain lines of business and are sizing up how the rule will impact their IT and compliance budgets....
Sep 20, 2016
This webcast will review the key aspects of the amendments and the steps that funds and intermediaries can take in order to comply with the...
Sep 13, 2016
Nationwide is providing a deeper look into the rule’s implications and a discussion of decisions firms will need to make in order to comply.