Publisher's Synopsis
<p> <b>Roth IRA Answer Book, Sixth Edition</b>, provides an up-to-the-minute tutorial on this subject for a wide variety of professional markets, including pension consultants, insurance agents, financial planners and investment advisors, plan administrators, lawyers, and accountants, as well as businesses that promote, market, service, or provide technical support to retirement plans, products, and related services. </p> <p> You'll find in-depth coverage of the administration and operation of a Roth IRA, as mandated by the Internal Revenue Code, Treasury regulations, and other IRS guidance. Written by a team of practicing experts preeminent in their fields, <b>Roth IRA Answer Book</b> takes the reader, step by step, through the creation, operation, and extinction of a Roth IRA. </p> <p> Topics covered include the following: </p> <ul> <li> How a Roth IRA is established, how documents are designated, and how a Roth IRA may be revoked </li> <li> Trustee and custodian disclosure requirements and governmental form reporting requirements - Forms 1099-R, 5329, and 8606 </li> <li> Limits on contributions, including the contribution phase-out rules, and the definition of modified adjusted gross income (MAGI) </li> <li> How the taxation of a Roth IRA distribution depends upon the source of funding for the amount distributed </li> <li> How abusive transactions having the effect of shifting value from a preexisting business into a Roth IRA for less than fair market value may be challenged </li> <li> How the contribution recovery rules under the ordering rules determine whether a Roth IRA distribution consists of annual contributions, conversions from an eligible retirement plan, other rollover contributions, or earnings </li> <li> How to make and treat a rollover (conversion) from an eligible retirement plan to a Roth IRA </li> <li> Which taxpayers will benefit most from a conversion, and when (especially in a declining investment environment) can a conversion be undone in a recharacterization </li> <li> How Roth IRAs may be used to enhance overall wealth-transfer planning </li> <li> The treatment of penalty-free distributions from an eligible retirement plan for special purposes, such as hurricane distributions, qualified recovery assistance distributions, qualified disaster recovery distributions, and qualified reservist distributions </li> <li> How and when special-purpose distributions may be repaid (rolled over) to an eligible retirement plan, including a Roth IRA </li> <li> And more! </li> </ul> <p> <b>Roth IRA Answer Book </b>has been updated to include: </p> <ul> <li> Discussion of the procedural guidance issued in December 2010 to drafters of pre-approved model and prototype IRAs and Roth IRAs, including rules for when documents must be submitted to the IRS </li> <li> Explanation of the new procedures for applying to the IRS for an opinion letter </li> <li> When the IRS lost an "abusive transaction" case </li> <li> Analysis of the 2010 proposed regulations broadly redefining when a person is considered to be a "fiduciary" by reason of giving investment advice </li> <li> The new in-plan Roth rollover rules and the guidance issued in Notice 2010-84 regarding the distribution and taxation of in-plan rollovers </li> <li> The status of an inherited Roth IRA under evolving Federal Bankruptcy rules </li> <li> Several new appendix charts have been added covering: <ul> <li> Rollovers by participants </li> <li> Rollover of inherited assets </li> <li> RMDs upon death of beneficiary </li> <li> Distributions to beneficiaries </li> </ul> The extension of designated Roth contribution features to governmental 457(b) plans </li> <li> Amendments to the definition of compensation to include differential wage payments </li> <li> Recent law developments about whether a power of attorney is or is not effective to permit a participant's agent to name a beneficiary </li> <li> How the law about IRAs' and other retirement plans' death benefits is sometimes similar to, but often quite different from, the law that applies to a person's disposition of his or her other wealth </li> <li> Application of the required minimum distribution (RMD) rules to an inherited Roth IRA </li> <li> Discussion of statutory changes since the 2002 mandatory changes relating to the qualification of Roth IRAs, including changes that: <ul> <li> Allow for the repayment of qualified hurricane distributions </li> <li> Eliminate the $100,000 modified adjusted gross income limit and the joint filing requirement for certain qualified rollover contributions </li> <li> Treat combat zone compensation to be taken into account for purposes of making a contribution </li> <li> Allow rollovers into Roth IRA from eligible retirement plans </li> <li> Allow for the repayment of reservist distributions </li> <li> Allow for nonspouse beneficiary rollovers </li> </ul> </li> <li> Treatment of certain military death gratuities as qualified rollover contributions </li> <li> The repayment of disaster distributions </li> <li> The extension of the qualified charitable distribution rules </li> <li> Clarification of when the beneficiary of an inherited Roth IRA can take a RMD from a different Roth IRAs </li> <li> The rollover of amounts received from military death gratuity or service members' group life insurance, and amounts received as part of an airline payment </li> <li> Discussion of the nonstatutory variables that affect decisions regarding Roth IRA conversions </li> </ul> <p> </p> <p> </p> <p> </p> <p> </p>