IRAs (BenefitsLink.com)Headlines re IRAs, gathered by BenefitsLink.comOfficial Guidance Text of IRS Notice 2008-51 Detailing Rules for Transfer of IRA Funds to an HSA (PDF)- (Found June 24, 2008 ) The notice provides guidance on the proper tax treatment of qualified health savings account funding distributions (transfers from IRAs), effective for tax years beginning after 2006. (Internal Revenue Service)http://benefitslink.com/IRS/notice2008-51.pdf IRS Issues IRA-to-HSA Transfer Rules- (Found June 24, 2008 ) Excerpt: "Holders of individual retirement accounts can shift some cash into health savings accounts without paying income taxes or penalties on the distributions. Officials at the Internal Revenue Service explain the procedures for carrying out 'qualified HSA funding distributions' in IRS Notice 2008-51." (The National Underwriter Company; free registration or paid subscription required)http://www.lifeandhealthinsurancenews.com/cms/nulh/Breaking%20News/2008/06/04-irs-ab Individual Retirement Accounts: Government Actions Could Encourage More Employers to Offer IRAs to Employees (PDF)- (Found June 24, 2008 ) 64 pages. Excerpt: "GAO was asked to report on (1) how IRA assets compare to assets in other retirement plans, (2) what barriers may discourage small employers from offering IRAs to employees, and (3) the adequacy of the Internal Revenue Service's (IRS) and the Department of Labor's (Labor) oversight of and information on IRAs." (U.S. Government Accountability Office)http://www.gao.gov/new.items/d08590.pdf Employer Plan Not Necessary for Retirement Savings- (Found June 24, 2008 ) Excerpt: "You may think that saving for retirement starts when you land a job with a defined-contribution plan, such as a 401(k) or 403(b). But even without this benefit, you can build retirement savings on your own. The way to start is through an individual retirement account, or IRA. You may have seen the acronym before or are familiar with what an IRA is." (Chicago Tribune)http://www.chicagotribune.com/business/yourmoney/chi-ym-started-0608jun08,0,7294283.story Guidance Overview IRS Notice Details Procedures for IRA Transfer to HSA- (Found June 24, 2008 ) Excerpt: "In Notice 2008-51, the Internal Revenue Service details guidance to implement a 2006 amendment to health savings account (HSA) legislation that provides plans the option to allow employees to start an HSA by making a one-time tax-free transfer of individual retirement account (IRA) funds." (Wolters Kluwer)http://www.hr.cch.com/news/benefits/060908.asp Guidance Overview Required Minimum Distribution from Retirement Plan - Eligible for Rollover to an IRA- (Found June 24, 2008 ) Excerpt: "While Treasury Regulation Section 1.401(a)(9)-7 clearly indicates that an RMD is not eligible for rollover, the IRS recently addressed that issue again in its Spring 2008 Retirement News for Employers. The IRS said, 'Rollovers to IRAs of required minimum distributions (RMDs) from a retirement plan are not permitted. This is true whether the RMD is made because you turned age 70 or because you retired after age 70.'" (Wolters Kluwer)http://www.complianceheadquarters.com/Question/IRA_061108.aspx Guidance Overview Reporting Rollovers from Pretax Plan Accounts to Roth IRAs- (Found June 24, 2008 ) Excerpt: "Recent IRS guidance (Notice 2008-30) explained that plans must allow participants to make direct rollovers from pretax plan accounts to Roth IRA accounts. Since the rollover is taxable, the participant may choose to have the employer withhold income taxes. Withholding is not mandatory. What does this mean for 1099-R reporting The target page example illustrates the complexities of reporting these rollovers." (SunGard Corbel LLC)http://www.relius.net/News/TechnicalUpdates.aspx?ID=404 Guidance Overview A Financial Institution Asks: Can We Exercise Our Right of Setoff Against an IRA Account- (Found June 24, 2008 ) Excerpt: "We don't believe you can exercise your right of setoff against an individual retirement account (IRA), for at least three reasons. First, it would breach your fiduciary obligations as trustee or custodian of the IRA. Second, IRAs have been deemed 'special deposits' immune from setoff. And third, the Federal Tax Code provides that IRAs are not 'forfeitable'." (Wolters Kluwer)http://www.complianceheadquarters.com/Question/Deposit_061608.aspx The Number of Individual Account Retirement Plans Owned by American Families (PDF)- (Found June 24, 2008 ) Pages 6-10 of 12 pages. Excerpt: "In brief, the data show that the majority of families in the United States do not own an individual account retirement plan at all, but of those that do own at least one plan, most own only one." (Employee Benefit Research Institute)http://www.ebri.org/pdf/EBRI_Notes_06-2008.pdf Guidance Overview Can One Take a Qualified Health Savings Account Funding Distribution from More Than One IRA- (Found June 24, 2008 ) Excerpt: "No. According to IRS Notice 2008-51, a qualified HSA funding distribution must come from a single IRA." (Wolters Kluwer)http://www.complianceheadquarters.com/Question/HSA_061808.aspx |