IRS Ruling Shows the Value of a Beneficiary Check-Up

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$10,000 Rollover Lessons From the IRS

Clients who miss their 60-day rollover deadline may be tempted to ask the IRS for an exception through a private letter ruling. However, as of 2016, they will have to pay a $10,000 fee with no guarantee of a favorable result. Here’s a look at three defenses that did not work with some tips for keeping clients compliant.

Options for Clients Who Missed the 60-Day Rollover Deadline

Missing the 60-day rollover deadline can subject a client to unwanted taxes and penalties. However, you may be able to preserve the tax deferral through automatic waivers or private letter rulings, if you understand the governing rules and procedures.

IRS Allows Spouse to Roll Over IRA When Estate Was Named as the Beneficiary

The IRS permits IRA spousal beneficiaries to roll over distributions within 60 days in some cases, but not in others. In this private letter ruling, the IRS waived the 60-day deadline and let the surviving spouse roll over the IRA amount even though the IRA owner’s estate was named as the beneficiary.

The Top 7 Questions for an Effective Beneficiary Audit

As boomers age, the question of who inherits the assets becomes more important to both clients and advisors. A good beneficiary audit reassures clients that the right people will inherit the right accounts and that the applicable tax and investment issues are carefully considered.