Friday, June 27, 2008
Tweet[IWS] PRESENT LAW AND ANALYSIS RELATING TO INDIVIDUAL RETIREMENT ARRANGEMENTS [24 June 2008]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
PRESENT LAW AND ANALYSIS RELATING TO INDIVIDUAL RETIREMENT ARRANGEMENTS
Scheduled for a Public Hearing Before the SELECT REVENUE MEASURES SUBCOMMITTEE of the HOUSE COMMITTEE ON WAYS AND MEANS on June 26, 2008
Prepared by the Staff of the JOINT COMMITTEE ON TAXATION June 24, 2008
JCX-53-08
http://www.house.gov/jct/x-53-08.pdf
[full-text, 56 pages]
CONTENTS
Page
INTRODUCTION .......................................................................................................................... 1
I. OVERVIEW ....................................................................................................................... 2
II. ECONOMICS OF IRAS..................................................................................................... 3
III. PRESENT LAW AND ADDITIONAL ISSUES ............................................................. 16
A. Individual Retirement Arrangements.......................................................................... 16
1. Tax Treatment of Contributions............................................................................ 16
2. Investment, Regulation and Protection of IRA funds........................................... 19
3. Tax Treatment of Distributions............................................................................. 22
4. Deemed IRAs........................................................................................................ 25
5. Payroll deduction IRAs......................................................................................... 26
6. Incentives for Roth IRA contributions.................................................................. 28
B. Employer Provided and Assisted Retirement Savings................................................ 30
1. Overview of employer sponsored qualified retirement plans ............................... 30
2. Tax qualified retirement plans .............................................................................. 32
3. Employee retirement annuities ............................................................................. 37
4. Employer retirement plans using IRAs................................................................. 38
5. Special plans for governmental and tax exempt employers.................................. 39
C. Other Savings Vehicles............................................................................................... 41
1. Education savings ................................................................................................. 41
2. Health savings....................................................................................................... 42
D. Saver's Credit.............................................................................................................. 43
1. In general .............................................................................................................. 43
2. Tax credit as an incentive for low income taxpayers............................................ 44
E. Auto-Enrollment ......................................................................................................... 45
1. In general .............................................................................................................. 45
2. Pension Protection Act of 2006 ............................................................................ 46
IV. AUTOMATIC IRA PROPOSALS................................................................................... 48
A. Proposals Relating to Automatic Enrollment in Payroll Deduction IRAs.................. 48
B. State Government-Sponsored Investment Opportunities............................................ 50
C. Discussion of Issues.................................................................................................... 51
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
PRESENT LAW AND ANALYSIS RELATING TO INDIVIDUAL RETIREMENT ARRANGEMENTS
Scheduled for a Public Hearing Before the SELECT REVENUE MEASURES SUBCOMMITTEE of the HOUSE COMMITTEE ON WAYS AND MEANS on June 26, 2008
Prepared by the Staff of the JOINT COMMITTEE ON TAXATION June 24, 2008
JCX-53-08
http://www.house.gov/jct/x-53-08.pdf
[full-text, 56 pages]
CONTENTS
Page
INTRODUCTION .......................................................................................................................... 1
I. OVERVIEW ....................................................................................................................... 2
II. ECONOMICS OF IRAS..................................................................................................... 3
III. PRESENT LAW AND ADDITIONAL ISSUES ............................................................. 16
A. Individual Retirement Arrangements.......................................................................... 16
1. Tax Treatment of Contributions............................................................................ 16
2. Investment, Regulation and Protection of IRA funds........................................... 19
3. Tax Treatment of Distributions............................................................................. 22
4. Deemed IRAs........................................................................................................ 25
5. Payroll deduction IRAs......................................................................................... 26
6. Incentives for Roth IRA contributions.................................................................. 28
B. Employer Provided and Assisted Retirement Savings................................................ 30
1. Overview of employer sponsored qualified retirement plans ............................... 30
2. Tax qualified retirement plans .............................................................................. 32
3. Employee retirement annuities ............................................................................. 37
4. Employer retirement plans using IRAs................................................................. 38
5. Special plans for governmental and tax exempt employers.................................. 39
C. Other Savings Vehicles............................................................................................... 41
1. Education savings ................................................................................................. 41
2. Health savings....................................................................................................... 42
D. Saver's Credit.............................................................................................................. 43
1. In general .............................................................................................................. 43
2. Tax credit as an incentive for low income taxpayers............................................ 44
E. Auto-Enrollment ......................................................................................................... 45
1. In general .............................................................................................................. 45
2. Pension Protection Act of 2006 ............................................................................ 46
IV. AUTOMATIC IRA PROPOSALS................................................................................... 48
A. Proposals Relating to Automatic Enrollment in Payroll Deduction IRAs.................. 48
B. State Government-Sponsored Investment Opportunities............................................ 50
C. Discussion of Issues.................................................................................................... 51
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 2:54 PM
