Taxpayers may be eligible for relief if they made an error in reliance upon a tax professional, according to a recent private letter ruling from the Internal Revenue Service.
When the U.S. Supreme Court ruled on the health care law late last month, the decision upholding the individual health insurance mandate made headlines.
But lost in the details and unknown to many was the 3.8 percent surcharge tax on net investment income set to take effect Jan. 1, 2013.
Lawyers and their clients who chose to convert a traditional IRA into a Roth IRA last year face a deadline in the coming weeks.
Those who wish to re-characterize their Roth IRA back into a traditional IRA have until Oct. 17 to take action.
Whether they are waiting until the last minute to decide or are gun-shy about writing a big check to Uncle Sam for the income tax on the conversion, lawyers say many taxpayers remain on the fence.
In 2008, Congress passed a bill that suspended the rule requiring retirees over the age of 70 and 1/2 to withdraw a certain amount from their individual retirement and 401(k) accounts in 2009.
Published: April 9, 2010
Tags: fair labor standards act, flexible spending accounts, FLSA, health care reform, health savings accounts, Medicare, Obama, Roth IRA, taxation, whistleblower
In addition to universal health care, the new reform law includes various provisions relevant to lawyers, including tax changes, an amendment to the Fair Labor Standards Act, new whistleblower provisions for hospital employees and other employment-related updates.
Estate planning attorneys should contact their clients about this opportunity, and lawyers should consider whether to take advantage of the change for their own retirement plans.