Q. Where can one find the new rule for correcting IRA excesses?
A. The actual rule comes from the statute under Internal Revenue Code Section 408(d)(4), which deals with correcting an excess timely (before the due date of the return). The key is that the IRS is now re-interpreting what it says. The new explanation in the Form 8606 instructions reveals this, and apparently when the new Publication 590-B is issued it will show the new interpretation as well.
A. The actual rule comes from the statute under Internal Revenue Code Section 408(d)(4), which deals with correcting an excess timely (before the due date of the return). The key is that the IRS is now re-interpreting what it says. The new explanation in the Form 8606 instructions reveals this, and apparently when the new Publication 590-B is issued it will show the new interpretation as well.
Recent Comments
Does the roth requirement for catch-up contributions for people who earned $145,000 apply to 457...
Hi Ed,
I really liked this article and I think you make a lot of sense. And I had no...
I believe there's a misstatement in that last quote - it should refer to governmental and...
Working with several medical providers as clients, I note that the high-end earners tend to push...
Congratulations to NTSAA for landing a good one. Nathan's breadth of experience and...