Quick Reference to IRAs, 2013 Edition

Quick Reference to IRAs provides attorneys, accountants, financial planners, and consultants - along with their clients - with the essential facts and advice regarding the planning, implementation, and administration of IRAs.

Quick Reference to IRAs completely covers the planning, programming, implementation, and administration of individual retirement accounts. This unique resource delivers:

• Fast answers to all your IRA questions
• Numerous, practical examples illustrating real-world applications
• Crucial caveats to help you steer clear of common problems
• Immediate access to essential IRA information

The 2013 Edition brings you up to date on the latest developments and adds significant new and revised materials on a number of critical topics, including:

• The benefits of using a trust as a beneficiary
• The strategic use of disclaimers for modifying an estate and retirement distribution plan to meet any changes in needs or objectives
• The self-employment tax deduction modifications for 2012
• Discussion of the exceptions that treat the performance of service as an employee as a trade or business
• The temporary relief for entering into certain indemnification and cross-collateralization agreements with brokers and financial institutions
• The 2011 guidance concerning the application of Prohibited Transaction Class Exemption 86-128, which permits a plan fiduciary (or affiliate) to engage in securities transactions for a fee as an agent on behalf of a plan
• Recent developments on fee-leveling and computer modeling arrangements
• New charts and discussion covering the calculation of earned income for retirement plan purposes
• Whether inherited IRAs are protected from creditors or included in the debtor's bankruptcy estate under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
• When the IRS lost an "abusive transaction"
• When "wrap" fees for investment advice and trade execution services are not deemed contributions to the owner's traditional or Roth IRA
• What an Employer Plans Compliance Unit (EPCU) examination program request involving a SIMPLE or SEP is looking for and how to respond
• Why did the SEC issue a no-action letter regarding the DOL's participant disclosure requirements and its rules on advertising
• The Form 1099-R reporting codes and changes to Form 5498 and Form 8606
• A discussion of the provision allowing for "in-plan" rollover conversions of a permitted distribution from an elective 401(k), 403(b), or governmental 457(b) plan to a designated Roth account within the employer's plan
• Complete discussion of the integration and participant exclusion rules that permit larger SEP contributions to be made for employees earning above a specified amount, but that also require that the $50,000 (for 2012) allocation limit be reduced
• The circumstances that allow the life expectancy of each beneficiary to be used ("separate share treatment"), rather than the life expectancy of the oldest beneficiary, under a single trust used as beneficiary of an IRA
• When a qualified disclaimer can be used by a beneficiary who will receive an RMD or by an individual to avoid being treated as a "designated beneficiary" as of September 30 following the year of death

• 1. TRADITIONAL IRAs
  • Establishing a Traditional IRA
  • Contribution Limit
  • Compensation
  • Investment Management
  • Adopting an IRA
  • IRS Model Forms
  • Revocation
  • Amendment
  • Exclusive Benefit Rule
  • Prohibited Transactions
  • Prohibited Transaction Exemptions
  • No Commingling of Assets
  • Maximum Contributions
  • Special Rules
  • Timeliness
  • Excess Contributions
  • Recharacterization
  • Correction of Excess Contributions
  • Rollovers
  • Trustee-to-Trustee Transfers between IRAs
  • Distributions
  • Valuing Annuity Contracts Converted to a Roth IRA
  • Annuities
  • Creditor Protection
  • Automatic Rollover of Mandatory Distributions
  • Qualified HSA Funding Distributions (IRA to HSA)
• 2. ROTH IRAs
  • Overview of Roth IRAs
  • Eligibility
  • Choosing Between a Roth and a Traditional IRA
  • Managing a Portfolio of Roth and Traditional IRAs
  • Custodial Requirements
  • Adopting a Roth IRA
  • Model Documents
  • Prototype Roth IRA
  • Separate Account Requirement
  • Disclosure Statement
  • Financial Disclosure Statement
  • Annual Report Requirement
  • Other Administrative Requirements
  • Right of Revocation
  • Amendment
  • Adoption of New Forms
  • Prohibited Transactions
  • Maximum Contribution Amount
  • Rollovers and Conversion Contributions
  • Direct Conversions to Roth IRAs
  • Eligible Rollover Distribution
  • Direct Conversion Taxation
  • Excess Contributions
  • Recharacterization
  • Trustee-to-Trustee Transfers Between Roth IRAs
  • Distributions and Taxation
  • Taxation Summary
  • Distributions upon Death
  • Annuities
  • Deemed (Roth and Traditional) IRAs
  • Qualified Roth Contribution Programs (Designated Roth Accounts)
  • Excess Contributions
  • Payroll Deduction Roth IRA Programs
  • Tax Credit
• 3. COMPARISON OF TRADITIONAL AND ROTH IRAs
  • Similarities and Differences
  • Shared Advantages
  • Individual Investing
  • Advantages of Traditional IRAs
  • Advantages of Roth IRAs
  • Making the Choice
  • Implementing the Decision
  • Reviewing the Financial Plan
• 4. CONVERSIONS AND RECONVERSIONS
  • Conversions
  • Conversion Taxation
  • Estimated Tax
  • Conversions Made After 2009
  • Treatment of a 2010 Roth IRA Conversion
  • Conversion Analysis
  • Case Studies
  • Reconversions
  • Failed Conversions
  • Recharacterization of a Converted Amount or Contribution
  • Special Administrative and Accounting Issues
  • In-Plan Roth Rollover Conversions
• 5. PRERETIREMENT FINANCIAL PLANNING WITH IRAs
  • Tax-Free Accumulation
  • Tax-Free Distributions from IRAs for Charitable Purposes
  • Compound Interest
  • Required Minimum Distributions
  • Rollovers by Nonspouse Beneficiaries
  • Early Distributions
  • Excise Taxes
  • Roth IRA Distribution and Excise Taxes
  • Implementation Issues
  • Roth IRA Conversions After 2009
  • Roth IRA Conversions After 2008 and Before 2010
• 6. ESTATE PLANNING
  • Goals
  • Large-Balance IRAs
  • Minimum Distribution Rules
  • Planning for the Married IRA Owner
  • Planning for the Unmarried IRA Owner
  • Roth IRAs versus Traditional IRAs
  • Post-Death Estate Planning
  • Creditor Protection
  • Estate Tax Conundrum
  • Comparison of Roth IRA, Traditional IRA Taxed, and Bank Savings Account
  • The 3.8 Percent Medicare Surtax in 2013
  • Reducing MAGI
  • Social Security Income Inclusion
  • Medicare Part B Premiums
• 7. DISASTER RELATED RELIEF: DISTRIBUTIONS AND REPAYMENTS
  • Qualified Disaster Distributions and Other Relief
  • General Rules
  • Qualified Hurricane Distributions (Hurricanes Katrina, Rita, and Wilma)
  • Qualified Disaster Recovery Assistance Distributions (Kansas Disaster Area)
  • Qualified Disaster Recovery Assistance Distribution Repayments (Midwestern Disaster Areas)
  • Qualified Assistance Distributions for the Purchase or Construction of a Main Home
  • Service in Combat Zone or Contingency Operation
  • Presidentially Declared Disasters or a Terroristic or Military Action
• 8. SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES
  • Overview
  • Suitability
  • SIMPLE IRA Requirements
  • Definition of Employer
  • Definition of Related Employer
  • Employer Eligibility Requirements
  • Employee Eligibility Requirements
  • Contributions
  • Excess Contributions
  • Time Requirements for Contribution Elections and Notices
  • Taxation of Distributions
  • Rollovers and Transfers
  • Loans
  • Protection from Creditors
  • ERISA Requirements
  • Retirement Planning Advice
  • Tax Credits
  • Correction Programs
  • Termination of Plan
  • Comparison of SIMPLEs and SEPs
• 9. SIMPLIFIED EMPLOYEE PENSION PLANS
  • Establishing a SEP
  • Approval for Combined Plans and Prior Plans
  • Definition of Employer
  • Domestic Workers
  • Nondiscriminatory Coverage
  • Contributions
  • Compensation Issues
  • Integration with Social Security
  • Employer Deduction Limit
  • Nondeductible Contributions
  • Exclusion of Contributions by Employee
  • Timing of Employer's Deduction
  • Life Insurance
  • Prohibiting Withdrawals
  • Restricted Funds
  • Excess Contributions
  • Top-Heavy Rules
  • ERISA Requirements
  • Distribution Rules
  • Taxation of Distributions and Rollovers
  • Loans
  • Termination of Plan
  • Protection from Creditors
  • Tax Credits
  • Retirement Planning Advice
  • Correction Programs
  • SEP Compared to a Qualified Plan
• 10. REPORTING, FILING, AND WITHHOLDING
  • Annual Reporting Requirements
  • Filing by IRA Owner
  • Withholding
  • Form 1099-R - Reporting Changes
  • Guide to 2010 Distribution Codes
  • Form 5498 IRA Contribution Information
  • Completing Form 5329 for 2010
  • Rollovers from Qualified Plans, 403(b) Plans and Governmental 457(b) Plans
  • Information Reporting and Statement/Notice Due Dates for 2010
  • Penalties for Failure to Satisfy Reporting Requirements
• 11. PLAN CORRECTION PROGRAMS - EPCRS, VFCP, AND DFVC
  • Employee Plans Compliance Resolution System
  • DOL Voluntary Fiduciary Correction Program
  • DOL Delinquent Filer Voluntary Compliance Program
  • Additional Information
• 12. PROHIBITED TRANSACTIONS
  • General Rule
  • Prohibited Transaction Penalty Tax
  • Exemption for Transactions with Service Providers
  • Effect on IRA
  • Acceptable Transactions
  • Investment Advice
  • Distribution Recommendation
  • Investment-Related Information
  • Investment Advice
  • Service Provider Fee Disclosure
• Appendix A Traditional IRA Deduction Restrictions for Active Participants Only
• Appendix B Summary Record of Traditional IRA(s) for 2010
• Appendix C Tables
• Index