Seymour "Sy" Goldberg, CPA, MBA, JD, Author at CPA Trendlines

IRA TAX MEMO: Why You Really Need a Protective Trust

Extract from forthcoming update to Practitioner’s Guide to IRA Distribution Rules

By Seymour Goldberg, CPA, MBA, JD
The Practitioner’s Guide to the IRA Distribution Rules under the SECURE Act

Editor’s note: As Sy Goldberg prepares an update to his “Practitioner’s Guide to the IRA Distribution Rules under the SECURE Act,” he’s uncovering some important nuggets, such as this extract to be found in a section called Advantages of Trusts as IRA Beneficiary. This extract, and much more, will be included in the forthcoming update, which is free to purchasers of the current edition.

The use of a protective trust as an IRA beneficiary with special provisions when clients have insufficient probate assets and significant IRA assets and the estate tax liability is significant.

This means that there may not be a source for payment of estate taxes that are attributable to the IRA assets if the beneficiary or beneficiaries of the IRA assets do not voluntarily cooperate in reimbursing the personal representative of the estate for the estate taxes attributable to the IRA accounts.

FEATURED

TAX ALERT: IRS Updates Pub. 590B on IRA Distributions

But is it really the final fix for the SECURE Act 10-Year RMD Rule?

By Seymour Goldberg

The IRS has issued an updated version of Publication 590-B, Distributions from Individual Retirement Arrangements.

And the IRS says the new version is to be used in preparing 2020 returns.

MORE: TAX ALERT: IRS Pledges to Fix SECURE Act 10-Year RMD Rule

Watch this space for a deeper dive.

Meanwhile, here are the highlights:

CLIENT SERVICE OPPORTUNITIES

TAX ALERT: IRS Pledges to Fix SECURE Act 10-Year RMD Rule

The IRS teases new update on IRA beneficiary distribution rules.

Update: IRS Admits Mistake. Official Revision Imminent

By Seymour Goldberg, CPA, MBA (Taxation), JD
Special for CPA Trendlines

Many practitioners are waiting for the Department of the Treasury to issue proposed regulations under the Secure Act that cover the required minimum distribution rules that apply to IRA beneficiaries commencing in 2021.

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The distribution rules regarding an IRA owner are not a big deal, but the distribution rules regarding an IRA beneficiary or an IRA trust are a big deal.

Seymour "Sy" Goldberg, CPA, MBA, JD

MORE AT STORE.CPATRENDLINES.COM

Seymour "Sy" Goldberg, CPA, MBA (Taxation), JD, is a legendary trust and estate advisor, having practiced and lectured for many years, and has recently sent a number of comment letters to the IRS and Treasury regarding IRA issues involving the Secure Act.

He is the best-selling CPA Trendlines author of

The Practitioner’s Introductory Guide to the New Retirement Distribution Rules That You Must Know

The Webcast

Learn more | Buy now

Major Penalty Changes Involving Failure to Take Timely Required Minimum Distributions from Retirement Accounts (Including IRAs)

The Webcast

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Retirement Assets: Traps, Failures and Errors – The Many Practical Issues When Dealing with Retirement Assets

Buy now | Learn more

and

The Practitioner’s Guide to the IRA Distribution Rules under the SECURE Act

Buy Now | Learn More

Goldberg has conducted well over 300 CPE programs in the field of taxation, including over 100 CPE programs involving IRAs and IRA Compliance issues, and has been quoted in the New York Times, Forbes, Fortune, Money Magazine, U.S. News & World Report, Business Week and the Wall Street Journal. He has also been interviewed on CNN, CNBC, and WCBS. He is the recipient of Outstanding Discussion Leader Awards from both the AICPA and the New York State CPA Society's Foundation for Accounting Education.

Goldberg is the senior partner in the law firm of Goldberg & Goldberg, P.C., Melville, N.Y., Professor Emeritus of Law and Taxation at Long Island University, Former Director of the Tax Institute of the C.W. Post Campus of Long Island University, Recipient of the American Jurisprudence Award in Federal Estate and Gift Taxation from St. John’s University School of Law, and CLE instructor for many professional organizations, including the New York State Bar Association, American Bar Association, NJICLE, City Bar Center for CLE, local bar associations and law schools. He began his career at the IRS.

Goldberg has authored four manuals on IRAs and trusts for the American Bar Association and for other organizations, such as the AICPA, on the IRA Distribution Rules.

His first guide, “A Professional’s Guide to IRA Distribution Rules,” was published by the Foundation for Accounting Education from 1993 through 1998. He has also been interviewed on many technical IRA issues for Ed Slott’s IRA Advisor.

Goldberg handles probate matters, tax disputes with the IRS and the IRS appeals office, IRA penalty waivers, and New York State Department of Taxation tax disputes. He has represented clients in more than 75 IRS ruling requests. He wrote an amicus brief in the 2014 inherited IRA Supreme Court Case, Clark v. Rameker. His manuals for the American Bar Association can be found in well over 100 law school libraries throughout the United States.

Goldberg has conducted continuing education courses on retirement distribution rules with the IRS. He has also recommended corrections to IRS Publication 590, working pro bono with the IRS and Congressman Steve Israel, resulting in IRS revisions and the adoption of IRS Publications 590-A and 590-B.

He can be reached at 516-222-0422 or by email at info.goldbergira@gmail.com.

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