Elder Client Planner
Spidell Publishing Inc.
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September 12, 2005
Spidell's Elder Client Flash Email
#2005-2 : New regulations address how to value IRA annuities when converting to Roth IRAs
New temporary and proposed regulations discuss how to value annuity contracts held in traditional IRAs and traditional individual retirement annuities when either is converted to a Roth IRA (Treas. Reg. §§1.408A-4 and 1.408A-4T). The regulations explain that fair market value, not the cash surrender value, must be used to determine the amount of income recognized on the conversion. The regulations are effective August 19, 2005, and are applicable to any Roth conversion where an annuity is distributed (or treated as distributed) from a traditional IRA on or after that date.

Complete details on this and other issues important to your clients age 50-plus will be in the October 2005 issue of the Elder Client Planner. Subscribers get access to the current and past issues via the Web at www.elderclientplanner.com. Not a subscriber? Click on the link for subscription information.
 
 
The Elder Client Planner is our initial nationwide publication to help tax professionals keep their retired or near retired clients.
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