Book - Looseleaf

Roth IRA Answer Book, Seventh Edition

Roth IRA Answer Book, Seventh Edition

Roth IRA Answer Book, Seventh Edition

By Gary S. Lesser, Denise Appleby, Michelle L. Ward, Gregory Kolojeski
Publish Date
Product Line
Wolters Kluwer Legal & Regulatory U.S.
Available formats


Roth IRA Answer Book provides in-depth coverage of the administration and operation of Roth IRAs. A team of practicing experts analyzes the most recent developments in practice, as well as legislation, regulation, and law. It is the one resource that takes pension professionals step by step through all aspects of plan administration and compliance.

ISBN: 9781454886105
SKU: 10045190-7777
ETA: Available: Item ships in 3-5 Business Days
  • 1. Introduction to Roth IRAs
    • Establishing a Roth IRA
    • Model Roth IRA Documents
    • Records Retention
    • Revoking a Roth IRA
    • Prototype Roth IRA Documents
    • Prohibited Transactions and Related Definitions
    • Miscellaneous Rules
  • 2. Annual Contributions to a Roth IRA
    • Limits on Annual Contributions
    • Phaseout Rules
    • Age and Plan Participant Status
    • Annual Contribution Deadline
    • Excess Contributions
    • Tax Credits for Contributions
    • Deemed Roth IRAs
    • Payroll Deduction Roth IRA Programs
  • 3. Conversion, Contribution Recharacterization, and Rollovers
    • Conversion of Traditional IRA to Roth IRA
    • Contribution Recharacterization
    • Rollovers
    • Deemed IRAs
    • Rollover of Military Death Gratuities and SGLI Payments
    • Rollover of Exxon Valdez Settlement
    • Qualified Reservist Distribution Repayments
    • Qualified Hurricane Distribution Repayments
    • Qualified Recovery Assistance Distributions Repayments (Kansas Disaster Area)
    • Qualified Disaster Distributions for the Purchase or Construction of a Main Home (Kansas Disaster Area)
    • Qualified Disaster Recovery Assistance Distribution Repayments (Midwestern Disaster Areas)
    • Qualified Disaster Distributions for the Purchase or Construction of a Main Home (Midwestern Disaster Areas) Service in Combat Zone or Contingency Operation
    • Presidentially Declared Disasters, Terrorist, or Military Action
    • Rollover of Airline Payments
  • 4. Voluntary Distributions
    • Qualified Distributions
    • Nonqualified Distributions
    • Five-Year Exclusion Periods
    • 10 Percent Premature Distribution Penalty
    • Withholding
    • Transfers Between Roth IRAs
    • Transfers Incident to Divorce
    • Deductions for Losses
    • Demutualization
    • Deemed Roth IRAs
    • Qualified Roth IRA Contribution Programs (Designated Roth Contributions)
  • 5. Required Minimum Distributions
    • Five-Year Rule
    • Beneficiaries
    • Subsequent Beneficiaries
    • Penalties
    • Tax Matters
    • Deemed Roth IRAs
  • 6. Financial Planning
    • The Basic Considerations
    • AGI/MAGI
    • Conversion Considerations
    • State Law Considerations
    • Inherited IRA
    • Life Insurance to Pay Estate Tax
  • 7. Roth IRA Trusts
    • Drafting Considerations
    • Roth IRA Trust Distribution Rules
    • Generation-Skipping Trust
    • Funding Clauses
    • Disclaimers
    • Taxation
    • Permissible Transfer
    • QTIPing a Roth IRA
    • Countable Beneficiaries
  • 8. Beneficiary Designations
    • Classifying Retirement Plans
    • Making a Beneficiary Designation
    • Family Rights that Restrain a Beneficiary Designation
    • How Divorce Might Affect a Beneficiary Designation
    • Other Events that Might Affect a Beneficiary Designation
    • Disclaimers
    • Giving Advice About Making a Beneficiary Designation
    • Common Mistakes
  • 9. Required Reporting for Roth IRAs
    • Reporting Roth IRA Contributions on Form 5498
    • Information to BeProvided to IRA Owner (or Beneficiary)
    • Deceased IRA Owner
    • Recharacterization Contributions
    • Revoked Roth IRAs
    • Penalties
    • Records Retention
    • Reporting Roth IRA Distributions on Form 1099-R
    • When Form 1099-R Is Not Used
    • Conversion
    • Recharacterization
    • Revoked Roth IRAs
    • Correcting 1099-R Forms
    • Penalties
    • Merger of Trustees and Custodians
    • Records Retention
    • Reporting Distributions and Conversions on Form 8606
  • 10. Designated Roth Contribution Programs
    • Contributions to Designated Roth Accounts
    • Designated Roth Accounts
    • Distributions from Designated Roth Accounts
    • Rollovers of Designated Roth Contributions
    • Excess Contributions
    • Reporting and Recordkeeping Requirements for Designated Roth Accounts
    • In-Plan Roth Rollovers
  • Appendices
  • Traditional IRA and Roth IRA Comparison Chart for 2013
  • Traditional IRA Deduction Restrictions for Active Participants
  • Restrictions on Roth IRA Contributions for High-Income Taxpayers
  • Roth IRA Distribution Taxation
  • Traditional/Roth IRA Eligibility for 2013—married
  • Traditional/Roth IRA Eligibility for 2013—single
  • Roth IRA Distribution Flowchart
  • Roth IRA Summary
  • Annual Roth IRA Contribution Limits
  • Annotated Extracts from Code Section 408A (As of June 1, 2013)
  • Code Section 408A: Roth IRAs
  • Modified Adjusted Gross Income (MAGI) Phaseout Chart
  • Modified Adjusted Gross Income (MAGI) Phaseout Chart
  • Extracts from Treasury Regulations (As of June 1, 2013)
  • Preamble, Final Treasury Regulations Section 1.408A
  • Preamble, Final Treasury Regulations Section 1.408A-4
  • Treasury Regulations Sections 1.408A-1 through 1.408A-10
  • Notice 2010-84, 2010-51 I.R.B. 872
  • Notice 2009-75, 2009-39 I.R.B. 436
  • Revenue Procedure 2006-13, 2006-3 I.R.B. 315
  • Notice 2007-7, Section IX, 2007-5 I.R.B. 395
  • Notice 2006-44, 2006-20 I.R.B. 889
  • Announcement 2008-44, 2008-20 I.R.B. 892
  • Announcement 2007-55, 2007-1 I.R.B. 1384
  • Notice 2008-30, 2008-12 I.R.B. 638
  • Notice 2004-8, 2004-4 I.R.B. 333
  • Pension and Welfare Benefits Administration (PWBA) Opinion Letter
  • Roth IRA List of Required Modifications and Information Package
  • Cash or Deferred Arrangement (CODA) List of Required Modifications and Information Package
  • Participant Rollover Chart
  • Portability Options for Inherited Assets from Employer Plans, Traditional IRAs and Roth IRAs
  • Beneficiary Rollover Chart
  • Required Minimum Distributions upon Death of a Beneficiary Under Code Section 401(a)(9)
  • Distribution to Beneficiary Chart
  • Employee Benefit Limits


Gary S. Lesser, Esq., is the principal of GSL Galactic Consulting, located in Indianapolis, Indiana. Mr. Lesser maintains a consulting practice providing services to other professionals and business owners. Mr. Lesser is a nationally known author, educator, and speaker on retirement plans for individuals and smaller businesses. He has broad technical and practical knowledge of both qualified and nonqualified retirement plans.

Mr. Lesser is the technical editor and co-author of SIMPLE, SEP, and SARSEP Answer Book; Roth IRA Answer Book; and 457 Answer Book (all Wolters Kluwer). In addition, he is a coauthor of Basic Accounting Simplified (GSL Galactic Publishing). Mr. Lesser has developed several software programs that are used by financial planners, accountants, and other pension practitioners to design and market retirement plans for smaller businesses. His two software programs—QP-SEP Illustrator™ and SIMPLE IllustratorSM—are marketed and distributed nationally. He has also been published in the EP/EO Digest, Journal of Taxation of Employee Benefits, Journal of Compensation and Benefits, Journal of Pension Benefits, Life Insurance Selling, Rough Notes, and the NAPFA Advisor.

In 1974, Mr. Lesser started his employee benefits career with the Internal Revenue Service as a Tax Law Specialist/Attorney in the Employee Plans/Exempt Organizations (EP/EO) Division. He later managed and operated a pension administration and actuarial service organization, was an ERISA marketing attorney for a national brokerage firm, and was a senior vice-president/director of retirement plans for several nationally known families of mutual funds and variable annuity products. Mr. Lesser graduated from New York Law School and received his B.A. in accounting from Fairleigh Dickinson University. He is admitted to the bars of the State of New York and the United States Tax Court.

Mr. Lesser can be reached at GSL Galactic Consulting, 944 Stockton St., Indianapolis, IN 46260-4925, (317) 254-0385, at, or at

Denise Appleby, CISP, CRC, CRPS, CRSP, APA, is a retirement plans consultant, trainer, freelance writer, editor and owner of Appleby Retirement Plans Consulting, located on the web at and Denise's retirement plans related experiences include working as a Retirement Plans Product Manager, Training Manager, Compliance Consultant, Technical Help Desk Manager and Writer. She has written over two hundred articles for many financial newsletters including, Pershing LLC's SixtySomething, The Pershing Press and Ed Slott's IRA Advisor. Denise is also a co-author of The CPA's Guide to Retirement Plans for Small Businesses, a publication of the American Institute of Certified Public Accountants (AICPA).

Denise is a frequent speaker at seminars where she explains the importance of saving for retirement, and how to prevent paying avoidable taxes and penalties on distributions from retirement plans. Denise has appeared on CNBC's Business News, where she gave insights on saving and planning for retirement. Denise has earned the following professional designations: The Accredited Pension Administrator (APA) from the National Institute of Pension Administrators, the Certified IRA Services Professional (CISP) designation from the Institute of Certified Bankers; the Chartered Retirement Plans Specialist (CRPS) designation from the College for Financial Planning; Certified Retirement Services Professional (CRSP) designation from the Institute of Certified Bankers; and the Certified Retirement Counselor (CRC) designation from the International Foundation for Retirement Education (InFRE).