IS IT TIME TO DROP ANCHOR AND MAP OUT YOUR FINANCIAL FUTURE?

Financial Resources for Accountants & Tax Professionals

With the increased demand and projected growth of personal financial planning services, CPAs are quite possibly the single most important decision makers for individuals and businesses. This section is resource for tax professionals on some of the more commonly encountered financial strategies and their corresponding Internal Revenue Code links and publication downloads.

Publication 590A

This publication discusses contributions to individual retirement arrangements (IRAs) including contribution dates, deductibility, contribution limits, prohibited transactions, phase-outs, rollovers, conversions, transfers, qualified domestic relation orders, income limits, recharacterizations, age limits, and excise tax.

Publication 590B

This publication discusses distributions from individual retirement arrangements (IRAs) including Required Minimum Distributions (RMDs), qualified charitable deductions, Excess Accumulations Penalty, Inherited IRAs, 59 ½ rule exceptions, Roth ordering rules, spousal beneficiaries, non-spousal beneficiaries, trusts as beneficiaries, and life expectancy tables.

IRC 401(a)(9)

The section of the Internal Revenue Code that deals with qualified pension, profit-sharing, and stock bonus plans.

IRC 7702

Section 7702 was created in order to limit the tax benefits to life insurance policies. It did this by defining what would be considered a life insurance policy, and investment vehicles that didn’t fall under the insurance definition were not eligible for the favorable tax treatments.

IRC 1031

1031 exchanges allow you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.

Revenue Ruling 2004-86

Using Delaware Statutory Trusts (DSTs) to satisfy the 1031 Exchange. Delaware statutory trusts are complicated entities, so it’s generally very helpful to receive counsel from qualified professionals before considering this as a potential replacement property.

IRC 1035

A 1035 exchange is a provision in the tax code which allows a policyholder to transfer funds from a life insurance, endowment or annuity to a new policy, without having to pay taxes.

72(t) FAQs

Rule 72(t) specifies exceptions to the early withdrawal tax that allow IRA owners to withdraw funds from their retirement account before age 59½ as long as the Separate Equal Periodic Payment (SEPP) regulation is met. These payments must occur over the span of five years or until the owner reaches 59½, whichever period is longer. It includes multiple calculation methods.

QLAC

As an exception to the Required Minimum Distribution (RMD), Qualified Longevity Annuity Contracts (QLACs) allow retirement plan participants to purchase annuities that begin making payments at an advanced age. Included are investment limits, maximum deferral period, and which annuities qualify.

IRS Retirement Plan Section

An overview of various retirement plans and the rules associated with each.

IRS Retirement Plan FAQs