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.
Build your practice focusing on managing risk and solving for the four common dreams shared by the affluent baby boomers.
The top articles from the 2015 issues of IMCA’s Investments & Wealth Monitor demonstrate the range and depth of content IMCA has become well known...
We have millionaire prospects across the country joining our workshops. View our video to see why!
Dec 02, 2015
Due to the recent legislation changes to the rules and filing options for Social Security, determining a filing strategy for your clients is now even...
Nov 17, 2015
Join MetLife in an informative seminar that will help you grow your business and provide a differentiating client experience.
Nov 10, 2015
Consumer behavior has shifted challenging advisors to change how they run their business by adopting new technology that allow them to focus on increasing client...