ICI Requests Guidance on Retirement, Education Savings, and Tax IssuesWashington, DC, June 8, 2007 - The Institute recently urged the Treasury Department and Internal Revenue Service to include certain items -- relating to investment companies and their shareholders, education savings, and retirement security -- in their 2007-2008 Guidance Priority List. Background
Each year, the Department of Treasury and IRS invite public comment on recommendations for items that should be included on their annual Guidance Priority List. Treasury's Office of Tax Policy and the IRS use the Guidance Priority List to identify and prioritize the tax issues that should be addressed through regulations, notices, and other published administrative guidance. The 2007-2008 Guidance Priority List will establish the guidance that the Treasury Department and the Service intend to issue from July 1, 2007, through June 30, 2008. ICI Position
In a letter to the agencies, ICI identifies 15 topics on which guidance is needed. ICI's topics focus on three areas: funds and their shareholders, education savings, and retirement security. Regarding funds and their shareholders, ICI requests guidance on a number of issues, including: - guidance providing a de minimis rule for preferential dividends paid by publicly-offered registered investment companies (RIC);
- guidance regarding RIC investments in a partnership when the RIC and the partnership have different tax years; and
- guidance clarifying the impact of various passive foreign investment company rules on RICs.
The Institute also requested that guidance projects be opened on the following retirement security issues: - updated safe harbor language under section 402(f) to reflect designated Roth accounts and the automatic rollover rules for mandatory distributions;
- guidance on automatic enrollment arrangements, including a model notice to participants and clarification of issues relating to permissible withdrawals; and
- guidance adopting a streamlined, uniform approach to providing future disaster relief for retirement plans and their participants.
ICI also requested guidance on the tax treatment of investments in section 529 plans. Related Links
This website includes sections devoted to retirement security, taxation, and education savings issues.
|
