INHERITED IRAs: TAX PLANNING AND IRS COMPLIANCE ISSUES
By Seymour Goldberg, CPA, MBA (Taxation), JD
Description of this guide
Retirement assets often represent a substantial portion of a taxpayer’s wealth. The retirement assets may be accumulated in a 401(k) plan, 403(b) arrangement, in another kind of qualified plan, or in an IRA. Regardless of the retirement arrangement involved, the tax consequences of making the right move at the right time can be financially beneficial—or, conversely, financially hazardous—for the taxpayer and the taxpayer’s family. The Tax Cuts and Jobs Act has made tax planning with retirement assets more important than ever.
This guide will help you avoid common errors in dealing with inherited IRAs and the maze of these rules that are often missed by beneficiaries, whether they are nonspouse beneficiaries or a spouse beneficiary. There is no requirement under the IRS rules that financial institutions advise the heirs of an inherited IRA regarding when, how, and why prompt action should be taken by them.
The author of this guide has found that the heirs of the deceased IRA owner's account are often clueless as to what the rules are from an IRS point of view and a legal point of view. This guide will point you in the right direction so that you can avoid tax penalties and tax traps regarding the inherited IRA rules. Instead, you can turn the tax and legal rules in your favor by knowing the rules—never guess, know.
Some topics included in this guide include:
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Seymour Goldberg (Biography) is the senior partner in the law firm of Goldberg & Goldberg, P.C., Long Island, New York, is Professor Emeritus of Accounting, Law and Taxation at Long Island University. He has taught many CLE and CPE programs at the state and national level as well as CLE courses for the American Bar Association, New York State Bar Association, City Bar Center for Continuing Legal Education, NJICLE, local bar associations and law schools.
Mr. Goldberg has been quoted in major publications including the New York Times, Forbes and the Wall Street Journal. He was formerly associated with the Internal Revenue Service and has been involved in conducting continuing education outreach programs with the IRS. He has authored guides for the American Bar Association and the American Institute of Certified Public Accountants on IRA compliance issues.
Mr. Goldberg is the recipient of Outstanding Discussion Leader Awards from both the AICPA and the Foundation for Accounting Education. His IRA guides can be found in well over 100 law school libraries.
Goldberg Reports is a trademark owned by Seymour Goldberg