The final regulations require investment advisers for ERISA-governed retirement plans and individual retirement accounts (IRA) to act in the best interest of their clients as “fiduciaries” within the meaning of ERISA and the Code, and provides carve-outs to these rules in certain situations. While the regulations hold many implications for advisers and their firms, this summary focuses on the relevant provisions for plan sponsors.
One of the more common responses I get when discussing my work with people is that they already know about “self-directed” retirement accounts. Unfortunately, the creature to which they refer more closely resembles a standard 401(k) than a truly self-directed investment platform.
The proposal would broaden the fiduciary definition, narrow exceptions, and substantially revise prohibited transaction exemptions applicable to current and newly covered fiduciaries.
Beginning in 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own. The limit will apply by aggregating all of an individual’s IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit.
In the event of a catastophic loss, a number of assets have traditionally enjoyed protection from creditors, including personal residences and retirement funds (up to certain limits). It has long been considered that Inherited IRAs would benefit from this additional protection as well. However, a recent unanimous Supreme Court decision has changed that entirely.
In a game-changing decision that has wide-ranging ramifications for financial advisers and tax professionals alike, the Tax Court ruled that the once-a-year IRA rollover rule applies to all of one's individual retirement accounts, not to each separately as previously believed. (Alvan L. Bobrow, et ux., v. Commissioner, TC Memo 2014-21, Docket No. 7022-11, Jan. 28).
Rep. Ron Kind, D-Wis., and Rep. Dave Reichert, R-Wash., have introduced a bill that they say will help small businesses structured as S corporations gain access to capital and grow. The S Corporation Modernization Act, HR 1478, would modify tax rules pertaining to S corporations and allow investments in them by IRAs. The bill was referred to the House Ways and Means Committee.
The Department of Labor (the “DOL”) issued on October 14, 2010 a final regulation laying out the obligation of administrators of participant-directed individual account plans to disclose certain information about the plan and its investment options, including performance history and related fees and expenses, to plan participants and beneficiaries at the start of their partici-pation in the plans and on an annual or quarterly basis thereafter.
The following article was written by Jim Reid, an experienced short-sale realtor in Palm Beach, Florida. At Reins, we were honored to be mentioned in the article and to work with Jim on this transaction; he and his client were both truly a pleasure to work with and wonderful people. For more information on the growing short-sale real estate market see our article titled, "IRA Investing and the Growing Short-Sale Real Estate Market" (link provided below).
People are hearing more and more about “self-directed” retirement accounts from their bank or brokerage firm. These accounts generally, allow investors to select from a menu of investment options, like many are accustomed to seeing from 401(k) plans. In some cases, an account holder might even have the option of selecting the specific stocks or funds that the IRA will hold.