{"id":83070,"date":"2022-05-18t00:00:15","date_gmt":"2022-05-18t04:00:15","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?post_type=product&p=83070"},"modified":"2024-02-08t22:43:18","modified_gmt":"2024-02-09t03:43:18","slug":"sg22ira","status":"publish","type":"product","link":"\/\/www.g005e.com\/shop\/sg22ira\/","title":{"rendered":"the practitioner\u2019s guide to ira distribution rules under the secure act [updated & expanded]"},"content":{"rendered":"
instant pdf download:<\/strong> look for the link in your order confirmation from “auto-confirm@www.g005e.com.” the guide is available only as a searchable, printer-friendly pdf. no traditional paper-bound version will be produced.<\/span><\/p>\n beware:<\/strong> the new ten-year rule that applies if ira owner dies before, on, or after his\/her required beginning date having a designated beneficiary of the ira account.<\/em><\/p>\n accountants and tax practitioners serving the many taxpayers who have accumulated considerable assets in their retirement accounts \u2013 including from 401(k)s, any other type of qualified plans, a 403(b) arrangements, a 457 governmental plans, traditional iras, and roth iras \u2013 need to know the potential pitfalls and best strategies.<\/p>\n estate and income tax planning are more important than ever, especially under the secure act. this guide covers many of the rules that you need to know under the secure act for the client who has retirement assets.<\/p>\n the devil lies in the details. and the details are all about the deadlines. the secure act has many deadline rules that have to be tracked in order to avoid irs penalties. you must become familiar with these deadlines.<\/p>\n overview<\/strong><\/span><\/p>\n the new retirement distribution rules<\/span><\/strong><\/p>\n appendix a<\/strong><\/span><\/p>\n updated life expectancy and distribution period tables effective as of january 1, 2022.\u00a0 includes discussion and application of transition rule that is applicable in 2022<\/p>\n appendix b<\/strong><\/span><\/p>\n articles and informational materials on retirement distribution compliance issues<\/p>\n table of contents<\/strong><\/span><\/p>\n by seymour goldberg<\/em><\/p>\n the irs proposed regulations are extensive and 275 pages in length.<\/p>\n the introductory part (preamble) of the proposed regulations, although complex, may be the best way to learn the many secure distribution rules. according to the irs, the proposed regulations are to apply for purposes of determining required minimum distributions for calendar years beginning on or after january 1, 2022.\u00a0 for the 2021 calendar year, taxpayers must apply the existing regulations but taking into account a reasonable good faith interpretation of the amendments made by sections 114 and 401 of the secure act.<\/p>\n changing the rules in the middle of the game<\/strong><\/p>\n section 114 of the secure act changes the required beginning date rules.<\/p>\n one of the big issues is what happens if many [designated beneficiary] taxpayers who inherited ira accounts in 2020 failed to take any required minimum distributions from those inherited ira accounts in 2021 if the ira owner passed away in 2020 and after his\/her required beginning date.\u00a0 under the proposed regulations if an ira owner died after reaching his\/her required beginning date having a designated beneficiary, then the designated beneficiary had to commence receiving the required minimum distributions in the year after the death of the ira owner.<\/p>\n the proposed regulations were released by the irs on feb. 23, 2022.\u00a0 up until that date taxpayers of inherited ira accounts who were designated beneficiaries were advised that if they inherited an ira account in 2020 they had until the end of 2030 to receive the inherited ira account proceeds without any irs penalty sanctions.\u00a0 these taxpayers were advised that it did not matter whether or not the deceased ira owner died before, on, or after his\/her required beginning date.\u00a0 it would seem that the irs would have to issue a waiver of some type to relieve the ira beneficiary from any irs penalty sanctions.<\/p>\n headaches for tax preparers<\/strong><\/p>\n imagine if, say, 200,000 [designated beneficiary] taxpayers inherited ira accounts in 2020 from ira owners who had passed away after their required beginning date and none of them took any required minimum distributions from these inherited ira accounts in 2021.<\/p>\n the tax preparer for such taxpayers would have a real headache in first learning which clients have the headache.<\/p>\n the tax preparer may not even know how to identify the taxpayers that have the headache much less determine the extent of the headache.<\/p>\n in addition, the tax preparer may not be aware of the issue or, if aware, the tax preparer may not have the time to figure out the amount of the headache.<\/p>\n such a tax preparer during the busy tax season may have to charge the client for the time it takes to determine the extent of the headache.<\/p>\n probably, the irs should just have an automatic waiver of the penalty and allow the headache amount to be received and reported on the taxpayer\u2019s 2022 income tax return.\u00a0 the reason is that tax preparers may not have the time to learn about the issue until after the 2021 filing season.<\/p>\n i am not aware of any rule that would permit the irs to say that if you did not know about the headache that the irs can just say forget about fixing the headache.\u00a0 that type of relief would probably require legislative action.<\/p>\n tax preparers need irs guidance<\/strong><\/p>\n the bottom line is that the tax preparer must be given guidance by the irs as to what action to take in order to avoid circular 230 issues.\u00a0 since the proposed regulations came out on feb. 23, 2022, how could the designated beneficiary taxpayer know about the compliance obligation in 2021 when such an ira beneficiary was advised that he or she could wait to receive the inherited ira account proceeds until the end of 2030, based on the 10-year rule?\u00a0 the designated beneficiary taxpayer had reason to believe that the 10-year rule allowed a 10-year deferral regardless of whether or not the deceased ira owner died before or on or after the deceased ira owner\u2019s required beginning date.<\/p>\n <\/p>\n seymour goldberg<\/strong>, cpa, mba, jd, is a senior partner in the law firm of goldberg & goldberg, p.c., melville, new york. professor emeritus of law and taxation at long island university. former director of the tax institute of the c.w. post campus of long island university. recipient of the american jurisprudence award in federal estate and gift taxation from st. john\u2019s university school of law.<\/p>\n cle instructor for many professional organizations including the new york state bar association, american bar association, njicle, city bar center for cle, local bar associations, and law schools.\u00a0 mr. goldberg is admitted to practice law in new york state.<\/p>\n authored 4 manuals for the american bar association on iras and on trusts as well as for other organizations such as the aicpa on the ira distribution rules.\u00a0 his first guide entitled \u201ca professional\u2019s guide to ira distribution rules\u201d was published by the foundation for accounting education for the years 1993 to 1998.\u00a0 he has been interviewed on many technical ira issues for ed slott\u2019s ira advisor.<\/p>\n mr. goldberg handles probate matters, tax disputes with the irs and the irs appeals office, ira penalty waivers, and new york state department of taxation tax disputes. represents clients in irs ruling requests (over 75). wrote an amicus brief in 2014 inherited ira supreme court case, clark v. rameker.<\/p>\n his manuals for the american bar association can be found in well over 100 law school libraries throughout the united states. he is a member of the relations with the irs committee of the new york state society of certified public accountants.\u00a0 he was formerly associated with the internal revenue service<\/p>\n mr. goldberg has conducted continuing education courses with the irs on the retirement distribution rules. he has recommended corrections to irs publication 590 working pro bono with the irs and then-congressman steve israel. this resulted in irs revisions and the adoption of irs publication 590-a and irs publication 590-b.<\/p>\n he is the recipient of outstanding discussion leader awards from both the aicpa and the foundation for accounting education. he has conducted well over 300 cpe programs in the field of taxation including over 100 cpe programs involving iras and ira compliance issues.<\/p>\n mr. goldberg has been quoted in the new york times, forbes, fortune, money magazine, u.s. news & world report, business week, and the wall street journal. he has also been interviewed on cnn, cnbc, and wcbs.<\/p>\n mr. goldberg can be reached at 516-222-0422 or by email at info.goldbergira [@] gmail.com.<\/p>\n
\nnew developments now make irs compliance a major issue in retirement distribution planning for ira owners and ira beneficiaries.<\/strong><\/span><\/h2>\n
updated!
\n<\/strong><\/span><\/em>executive resource summary of the guide<\/strong><\/span><\/h3>\n\n
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\ncircular 230 issues and october 31 deadline issue.<\/li>\n\n
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new!
\n<\/em><\/span>supplement to the practitioner’s guide<\/strong><\/span><\/h3>\n\n
trouble!<\/span><\/em>
\nissues in the irs proposed regulations<\/span><\/strong><\/h3>\n
\nabout the author<\/strong><\/span><\/h2>\n