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Article: Roth IRA final regs. offer clarity and guidance.(IRS regulations)
- Article from:
- The Tax Adviser
- Article date:
- September 1, 1999
- Author:
CopyrightCOPYRIGHT 1999 American Institute of CPA's. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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EXECUTIVE SUMMARY
* In addition to regular annual contributions to a Roth IRA, taxpayers may also make rollover (conversion) contributions from SEP, SIMPLE and traditional IRAs to a Roth IRA.
* If a decedent's spouse is the sole beneficiary of all of the decedent's Roth IRAs, he can elect to continue the decedent's four-year spread.
* A failed conversion is not eligible for the four-year income spread and is subject to the 6% Sec. 4973 tax on excess contributions and the 10% Sec. 72(t) tax on early distributions.
When introduced, Roth individual retirement accounts (IRAs) were complex, as taxpayers had to meet income limits to ...