Posts tagged Tax
Key Coverdell ESA Contribution Questions Administrators Face

Coverdell education savings accounts (ESAs) provide a unique savings vehicle with the potential to have tax-free income to cover the costs for education. Questions about ESAs surface when family members, or others, come into their financial organization to make contributions for their loved one. Here are a few common questions financial organization may encounter about ESA contributions.

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Tax Reform Law Affects IRAs, Retirement Plans, and Other Savings Arrangements

Late in December 2017, President Trump signed tax reform legislation into law (Public Law No. 115-97) resulting in fulfillment of one of the GOP’s major 2016 campaign promises. The legislation affects employer-sponsored retirement plans and IRAs, and in some cases, other tax-advantaged savings arrangements. 

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IRS Issues Reminder About Retirement Effects of Hurricane Relief Legislation

The IRS released a reminder notice in December 2017 of the tax-related relief granted by the Disaster Tax Relief and Airport and Airway Extension Act of 2017. This legislation, enacted in early October 2017, provides special options for those affected by Hurricanes Harvey, Irma, and Maria, including options specific to IRA and employer-sponsored retirement plan assets.

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PBGC’s Modified Missing Participant Regulations Now Apply to DC Retirement Plans

The Pension Benefit Guaranty Corporation (PBGC) issued final regulations that modify existing guidance on missing participants and beneficiaries in terminating qualified retirement plans. The revised regulations broaden guidance to now apply to defined contribution (DC) plans, to multiemployer (union) plans covered under PBGC’s pension insurance program, and to certain other DB plans not previously covered.

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DOL Extends Transition Period for Key Fiduciary Rule Requirements to Mid-2019

The applicability date of several key elements of the Department of Labor (DOL) investment fiduciary guidance has been extended from January 1, 2018, to July 1, 2019. The additional 18-month transition period specifically applies to the controversial Best Interest Contract (BIC) exemption, to the “principal transactions” exemption for asset transactions between investment fiduciaries and employee benefit plans (including IRAs), and to certain proposed restrictions on annuities offered as retirement investments.

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