August 21, 2014
August 20, 2014
August 19, 2014
August 18, 2014
Fiscal Cliff Legislation's Impact on Roth Conversions for Deferral Retirement Plans
The newly passed American Taxpayer Relief Act of 2012 contains provisions related to a Roth IRA account. Currently, employee deferral plans, like 401(k), 403(b) or 457(b) plans, may have a Roth feature to allow employees to contribute to such plans on an after-tax basis with earnings thereon tax-free when distributed. Plans currently may allow employees to convert their traditional (pre-tax) accounts to a Roth account with respect to amounts for which an employee can elect a distribution. The new law allows employees to convert any traditional (pre-tax) amounts within an employee deferral plan into a Roth account, even if the employee cannot elect a distribution of such amount. The amount so converted would be subject to regular income tax in the year of conversion and the earnings thereon after such conversion would be tax-free when distributed. It is anticipated that plan amendments would be required to allow for the conversion. It is also assumed that an employee must be fully vested in the amounts converted to a Roth account.
From a retirement plan perspective, the new law placed no new caps or limits with respect to contribution levels.
<span class="advertise"> Advertisement </span>
- Indian Nations Law Focus - August 2014
- Affordable Care Act Employer Penalties – Another Reason to Make Sure Workers are Properly Classified as Employees or Independent Contractors
- Important North Carolina Bill For Local Tax and Economic Development Changes is Mired in the Muck
- Righting a Wrong: The “Claim of Right” Doctrine and Other Tax Considerations for the Repayment of Pension Plan Overpayments
- Individual Responsibility for 2014 Under the Affordable Care Act (ACA) IRS Revenue Procedure 2014-46
- The Affordable Care Act—Countdown to Compliance for Employers, Week 20: 9.5% ≠ 9.56% (And Why It Matters to Applicable Large Employers)