Deadlines Extended for Certain Weather Victims

The IRS has issued several news releases granting tax relief for certain victims of recent storms. The deadline to make IRA, ESA, and HSA contributions has been extended until May 6, 2008 for parts of Illinois, until May 19, 2008 for parts of Georgia and Missouri, and until May 27, 2008 for parts of Arkansas. (Posted 04.30.08)

Mistakes Ruined 72(t) Exception

A recent tax court case illustrates the penalties that applied when an IRA used an outdated single life expectancy table, miscalculated the distribution amount, and did not establish which retirement accounts were taken into consideration in allegedly computing 72(t) payments. (Posted 04.30.08)

Missed Death RMDs Did Not Stop Life-Expectancy Payout

The IRS has ruled that a nonspouse beneficiary who failed to timely take death required minimum distributions (RMDs) could still use the life-expectancy payout rather than be forced to use the five-year rule. (Posted 04.30.08)

IRS Issues Guidance on Rollovers from WRPs to Roth IRAs

The IRS recently issued guidance about the provision of the Pension Protection Act of 2006 that permits individuals to roll over funds from a workplace retirement plan (WRP) to a Roth IRA. Although such transactions are reported as rollovers on IRS Form 5498, they are taxable and subject to the conversion eligibility rules. (Posted 03.26.08)

IRS Releases Instructions for 2008 Forms 1099-R and 5498

The IRS released the 2008 instructions for Forms 1099-R and 5498. The 2008 instructions address the reporting of direct conversions from workplace retirement plans to Roth IRAs. (Posted 02.27.08)

NOTE!

The topics above, and many others like them, are covered in detail in PMC’s monthly NEWSLETTER, the IRA Compliance Update. It is planned, written, and edited by a team of America’s acknowledged authorities on IRAs, and is devoted to telling you what you want and need to know about IRAs, ESAs, and HSAs. Click on “IRA Compliance Update” on the bottom of this page.

The information provided above is designed to provide accurate and authoritative information in regard to the subject matter covered. However, the publisher is not engaged in rendering legal, accounting, or other professional service.

Important Dates

May 26, 2008
PMC closed for Memorial Day

May 31, 2008
Deadline for correcting ESA contributions for 2007

June 2, 2008
Deadline for sending 2007 Forms 5498 and 5498-SA to accountholders

Deadline for sending 2007 Forms 5498, 5498-ESA, and 5498-SA to the IRS