Transferring an IRA to a trust saves taxes while permitting control over disposition
Article Abstract:
Alternatives for transferring IRA or qualified plan assets upon death of the owner or participant are reviewed. Optimum tax treatment is generally achieved by naming the surviving spouse outright beneficiary of IRA or qualified plan assets. A trust can also provide significant income tax deferral advantages, and can give the IRA owner or plan participant post-death control over qualified assets. Rolling lump-sum distributions from qualified plans into an IRA can be advantageous because rules governing disposition of death benefits from IRAs are more flexible.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
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Some accounting practices will have to be changed (again) as a result of RA '87
Article Abstract:
The Revenue Act of 1987 has made several fundamental changes in tax accounting provisions. Several tax accounting provisions that were changed by the Tax Reform Act of 1986 have been changed again. The areas affected by the new law include vacation pay accruals, the installment sales method, last-in first-out (LIFO) recapture on conversion to S corporation status, and long-term contracts.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Purchase price allocations restricted by Tax Reform Act of 1986. How to make the most of the remaining deductions under the new law
- Abstracts: New law taxes excess distributions and contains additional restrictions on plans. Rules on plan distributions and rollovers modified by new law, but many options remain