IRA Tax Rules Getting Trickier?
As Uncle Sam examines the tax code to find places to gain revenue, IRA’s will be a low hanging fruit. According to a report by the Treasury Inspector General for Tax Administration, the government let over $286 million in IRA tax penalties go uncollected in 2006 and 2007. The IRS is beginning to take measures to bridge the gap toward par. This includes auditing millions of accounts for prior reporting errors and mistakes to collected on the missed tax penalties. It looks like the 46 million households with accounts at risk for audit need to get their accounts in order at a high rate a speed as the IRS will be submitting a report to the Treasury Department by October 15th on how to pursue the taxpayers who make contribution or withdrawal errors. There are many mistakes made nationwide simply because not even advisers are always up to speed on the rules surrounding IRA accounts, specifically when it involves converting an IRA to an inherited IRA account (see the whole article for a list of common mistakes and how to avoid them). With the uncertainty in the market and the upcoming push to collect additional tax revenue from anywhere the government can find it, now might be the time to examine the positives of a safe product like a fixed indexed annuity.
To read the entire article click IRA rules get trickier.
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