| Roth's Amendment to Modify
Minimum Distribution Requirements to Determine AGI for Roth IRA Conversions |
The Joint Committee on Taxation has reported (JCX-31-98) an
amendment to the IRS Restructuring bill that would include some limited changes to the
$100,000 AGI test starting after 2004. Included here are the Committee's description,
Roth's press release, and the statutory language. Also included is an article by Gregory Kolojeski. (5/6/98). |
| Guide to the Roth IRA Technical Corrections | Article by Kaye Thomas (Fairmark Press Tax Guide for Investors,
5/15/98) Comments: An excellent review of the Roth IRA technical corrections. The discussion of how the pre-59½ penalty would work is particularly interesting. |
| Senate's Roth IRA Technical Corrections | Article by Gregory Kolojeski (exclusive to the Roth
IRA Web Site, 4/17/98) Quote: The technical corrections proposed by the Senate represent a considerable improvement to those in the bill passed by the House. |
| Technical Corrections
Bill-Senate Proposals |
Statutory language for the IRA parts of Title VI of H.R.
2676, the IRS Restructuring and Reform Act of 1998, as reported out by the Senate Finance
Committee on 4/22/98. Passed by the Senate on 5/7/98, the next step was a Conference Committee between the House and Senate. |
| Technical Corrections Explanation: Joint Committee on Taxation | The Joint Committee on Taxation released a report
(JCX-18-98), Description of Technical Corrections to the Taxpayer Relief Act of 1997,
which includes significant proposed Roth IRA provisions. There are some significant changes from last year's bill passed by the House. The Senate Finance Committee regularly posts information on the IRS Restructuring legislation, which includes the technical corrections. |
| Updated on 12/4/97: IRS Guidance |
Guidance on minimum distributions rules. Model agreement provides for automatic spousal rollover. |
| Technical Corrections Bill-House | H.R. 2645, includes significant
changes to Roth IRAs. This is the House's statutory language. See comments (last updated 11/13/97). |
| Technical Corrections Explanation | The Joint Committee on Taxation released a report, Description of Chairman's Mark of the "Tax Technical Corrections Act of 1997", which includes significant Roth IRA provisions. Be sure to also read the footnotes. |
| Updated on 11/13/97: Roth IRA Loophole to be Closed |
There is a loophole that would allow one to roll over an
existing IRA to a Roth IRA and then make an immediate withdrawal that is not subject to
the 10% penalty for pre-59½ withdrawals. Quotes from the discussion: ...looks like the writers of the technical corrections bill have decided to go beyond what was necessary to fix the loophole. ...appears that there would be no way for one under age 59½ to do a conversion while paying the income tax on the conversion from the traditional IRA or the Roth IRA without incurring a 10% penalty. |
| The Ordinary IRA | What do you call an IRA that is not a Roth IRA? It's an Ordinary IRA in the 1997 IRS Publication 590 or Traditional IRA in IRS Announcement 97-122. |
| Statutory Language | Section 302 of the Taxpayer Relief Act of 1997 contained the statutory language for the new Roth IRA which is in a new section of the Internal Revenue Code designated as §408A. |
| Statement of the Managers | The Statement of the Managers provides background on how the Roth IRA was created from proposals originally calling for an American Dream IRA or an IRA Plus account. |
| Conference Report | This is the official conference report explanation of the law. |