In its list of required plan amendments for 2008, the IRS has failed to include any mandatory requirement that plans provide for non-spouse beneficiary rollovers to IRAs. This implies a change in position from their Interim and Discretionary Amendments release issued in the fall of 2007, which suggested that the IRS intended to acquiesce in advance of a Congressional Technical Corrections bill that non-spouse beneficiary rollovers from employer retirement plans to inherited IRAs would be mandatory, as covered earlier in this blog.
The IRS has just released Revenue Ruling 2008-5, cracking down on a perceived loophole in the so-called “wash sale” rules where an individual sells a security at a loss and purchases a substantially similar security in his/her IRA. And unlike a typical wash sale where the rules simply temporarily disallow the loss, in the case of a wash sale with an IRA the loss will be permanently forfeited under the new rules!Read More…
Last year’s passage of the Pension Protection Act (PPA) allowed, under Section 829, for non-spouse beneficiaries to complete rollovers of inherited employer retirement plans into inherited IRAs to maximize tax deferral.
Unfortunately, though, the IRS’ interpretation of the newly created IRC Section 402(c)(11) early this year in IRS Notice 2007-7, declared that such rollovers would only be optional, at the discretion of the employer to allow them or not. Fortunately, though, in the face of a pending Technical Corrections bill in Congress to reverse this undesirable interpretation, the IRS has acquiesced to simply making the treatment mandatory for all employers.Read More…
With this entry, a new blog is born in the world. Like most of the 100 million or more others who have created blogs in recent years, I’ve created this one because I have something to share, and I hope that I will find an audience who finds value in what I have to say.
The focus of this blog will be on all things financial planning. As a self-admitted financial planning nerd, I will share in this space my own commentary on financial planning developments that I believe are relevant to the world, and on development in the world that I believe are relevant to financial planning.
It is my intention, though, to not let this be a purely one-sided discussion. Please share your comments on my posts. Feel free to write me at firstname.lastname@example.org. Tell me about your challenges and your successes, what you’re seeing and hearing and reading, and what you’re experiencing.
I’m going to share with you whatever insights I can on financial planning issues; I hope you’ll consider responding in kind.