SELFDIRECTED IRAS WHAT'S NEW? KAAREN HALL
News on the 60Day Rollover
On Aug. 24, 2016 the IRS changed its appeals process for those who miss the 60day deadline. (Rev. Proc.
201647) Now, with some "selfcertification" legwork, you can fix the problem yourself. In a typical 60day
rollover, a person will take a personal distribution from one of their retirement accounts. Then, within 60
days, they deposit it into another retirement
account.
The IRS says that a taxpayer may make a
written certification to a plan administrator or an
IRA trustee that a contribution satisfies the
conditions in Section 3.02 of this revenue
procedure. This selfcertification has the effects
described in Section 3.04 of this revenue
procedure.
Taxpayers
may
make
the
certification by using the model letter (provided
by the IRS) on a wordforword basis or by
using a letter that is substantially similar in all
material respects. A copy of the certification
should be kept in the taxpayer’s files and be available if requested on audit.
If you believe your 60day rollover should not be a taxable event, discuss this with your tax professional.
The RISE Act
Senator Ron Wyden, who is a Democrat on both the Senate Committee on Finance the Subcommittee on
Taxation and IRS Oversight, came out with a proposal called the RISE Act.
The proposal has more than a dozen provisions including:
•
Raising the age for Required Beginning Date for Required Minimum Distributions
•
Requiring valuations for IRA asset acquisitions
•
Prohibiting investing in assets acquired at less than fair market value
•
Elimination of Roth conversions
•
Roth IRAs would be subject to Required Minimum Distributions
•
Exempting small IRAs from RMDs (where account value is less than $150,000)
This proposal is open for commentary until December 8, 2016.