IRS Ruling on IRAs Raises Numerous Unclaimed Property Issues for Holders, Owners, and States Alike
Many states have begun to treat IRAs as unclaimed property even before the owner can take a tax-free distribution. But now the IRS has ruled that escheatment is equivalent to a distribution and subject to federal income tax withholding and reporting requirements. Our Unclaimed Property Group dives into this dilemma for holders, owners, and states alike.
Revenue Ruling 2018-17 concludes that escheatment of an IRA is a designated distribution
Holders must honor federal tax withholding and reporting rules upon escheat
States are aggressively auditing IRAs
Potential negative impact on [...]Read more
Unclaimed Property ADVISORY: Delaware Moves to Revamp Its Unclaimed Property Law
Our Unclaimed Property Group explores legislation introduced in the state Senate that if enacted, would prompt a sea change in Delaware law governing abandoned and unclaimed property.