News & Analysis as of

Unclaimed Property Internal Revenue Service

Keating Muething & Klekamp PLL

Benefits Monthly Minute - February 2025

The February Monthly Minute highlights a new online ACA reporting alternative, the DOL’s temporary policy regarding escheatment of small retirement benefits owed to missing participants, and new guidance clarifying the gag...more

Alston & Bird

FAQs on Unclaimed Property Aspects of Retirement Assets

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Our Unclaimed Property Team has created FAQs to stimulate review of the numerous challenges associated with the potential escheatment of traditional IRAs and other tax-advantaged retirement assets....more

McDermott Will & Emery

New Guidance on Missing Participants & Escheatment to State Unclaimed Property Funds

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The Internal Revenue Service (IRS) recently issued Rev. Rul. 2020-24 and Rev. Proc. 2020-46 to provide direction with respect to qualified plan distributions paid to a state unclaimed property fund (i.e., an escheatment of...more

Miles & Stockbridge P.C.

Withholding and Reporting of Payments to an Unclaimed Property Fund

Sometimes, a retirement plan is required to distribute a missing participant’s account balance into a state’s unclaimed property fund. Until recently, it was unclear whether this distribution is subject to withholding of...more

Faegre Drinker Biddle & Reath LLP

IRS Issues Guidance on Missing Participants and State Unclaimed Property Funds

In October 2020, the IRS issued two pieces of guidance addressing (1) the tax withholding and reporting of distributions from qualified retirement plans to state unclaimed property funds, and (2) the ability of taxpayers to...more

Troutman Pepper Locke

Private Clients Update - Volume 2018, Issue 1

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Year-End Reminders For 2018, the estate, gift and generation-skipping transfer tax exemption is $11.18 million per person ($22.36 million for a married couple). ...more

Blank Rome LLP

IRS Delivers Double Whammy to Owners of Escheated IRAs

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The Internal Revenue Service recently issued a ruling describing the tax treatment of individual retirement accounts that become unclaimed property. IRA owners should be aware of this ruling and ensure that they are taking...more

Blank Rome LLP

New IRS Ruling Creates Double Whammy for Individual Retirement Accounts Treated as Unclaimed Property

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The IRS recently issued a ruling describing the tax treatment of IRAs that become unclaimed property. IRA owners should be aware of this ruling and ensure that they are taking appropriate measures to avoid having their IRAs...more

Alston & Bird

IRS Ruling on IRAs Raises Numerous Unclaimed Property Issues for Holders, Owners, and States Alike

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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...more

Eversheds Sutherland (US) LLP

Escheated funds from IRAs subject to federal tax reporting and withholding 

The payment of a traditional individual retirement account or annuity (IRA) over to a state unclaimed property fund will now be subject to federal tax withholding and reporting, according to Rev. Rul. 2018-17 released by the...more

McDermott Will & Emery

Focus on Tax Controversy - Summer 2014

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In This Issue: - Waiver of Privilege: Disturbing Trends - New Repair Regulations Affect All Taxpayers - Unclaimed Property – It Is Not a Tax, but It Can Feel Like One - Excerpt from Waiver of...more

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