Wolters Kluwer : Financial Services Encourages Financial Institutions to Alert Their IRA Customers to One-Rollover-Per-12-Month-Period Rule

Wolters Kluwer Financial Services is encouraging banks, credit unions and other financial institutions to reach out to their IRA customers to alert them of the Internal Revenue Service's planned enforcement of the one-rollover-per-12-months rule.

In the wake of a recent U.S. Tax Court decision, Bobrow v. Commissioner, the longstanding practice of rolling over multiple distributions could, in the near future, result in additional taxes and penalties for IRA customers. Consequences could include excess contribution penalties, income taxed on ineligible rollover amounts, late-tax payment penalties, and potential early distribution penalties.

The IRS has withdrawn a previously proposed regulation allowing multiple IRA rollovers within a 12-month period and is expected to soon promulgate its enforcement policy on the one-rollover rule. It is expected that the IRS will not begin enforcing the updated rule until Jan. 1, 2015 at the earliest. Nevertheless, advance notice to IRA customers is highly encouraged in helping them manage their retirement portfolios, according to Wolters Kluwer Financial Services regulatory experts.

"With this Tax Court decision and its impact on IRA rollover enforcement, it will be critical for financial institutions to be proactive in alerting their IRA customers about the federal government's revised stance on rollovers within a 12-month period," said Mark Campbell, senior manager for Tax-Advantaged Accounts, Wolters Kluwer Financial Services.

Wolters Kluwer Financial Services is hosting a series of educational webinars on this topic in October, November and December. For more details, read more about the IRA rollover rule.

About Wolters Kluwer Financial Services

Wolters Kluwer Financial Services provides more than 15,000 customers worldwide with risk management, compliance, finance and audit solutions that help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions.AppOne®, ARC Logics®, AuthenticWeb™, Bankers Systems®, Capital Changes, CASH Suite™, FRSGlobal, FinArch, GainsKeeper®,  NILS®, TeamMate®, Uniform Forms™, VMP® Mortgage Solutions and Wiz®. Wolters Kluwer Financial Services is part of Wolters Kluwer, which had 2013 annual revenues of €3.6 billion ($4.7 billion), employs 19,000 employees worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.