Under a recent Internal Revenue Service Ruling, the escheatment of payments made from a traditional IRA account to the state’s unclaimed property fund constitutes a designated distribution that is subject to federal tax withholding rules for IRAs. The trustee or custodian of the IRA must also report those payments on a 1099-R, identifying the owner as the recipient.
Compliance (272 articles)
Most state estimates suggest that only 15 to 35 percent of companies are in full compliance with unclaimed property laws, and even those who are in compliance technically may be underreporting because they aren’t correctly interpreting what the law requires. Here you will find best practices and articles to help you comply with unclaimed property rules and regulations.
The fall unclaimed property filing deadlines may be months away, but we’re already looking ahead and making our preparations. This unclaimed property reporting calendar will serve as a guide to approach the months ahead of the upcoming October and November deadlines.
Even for the most seasoned professionals, the annual unclaimed property reporting process is not without its pitfalls. With 55 individual jurisdictions and varying state escheat laws, there are plenty of potential mistakes to avoid. While the list below is not exhaustive, here are some of the most common unclaimed property reporting errors to which many […]