Juggling AccountsJuggling Accounts
In 2010, the legislature, Internal Revenue Service and courts were busy dealing with retirement benefit issues. Congress expanded designated Roth accounts (DRACs) to church and governmental plans and gave employees who participate in elective deferral plans the ability to make a conversion to a DRAC maintained by the same employer. In the courts, a surviving spouse unsuccessfully sought to apply the
Michael J. Jones
In 2010, the legislature, Internal Revenue Service and courts were busy dealing with retirement benefit issues. Congress expanded designated Roth accounts (DRACs) to church and governmental plans and gave employees who participate in elective deferral plans the ability to make a conversion to a DRAC maintained by the same employer. In the courts, a surviving spouse unsuccessfully sought to apply the Employee Retirement Income Security Act (ERISA) mandates to an individual retirement account; another surviving spouse was subject to the 10 percent tax on early distributions; and a taxpayer's scheme to use life insurance to reduce an IRA's income taxes failed. Both a court and a private letter ruling explored the effect of s...
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