| Description |
1 online resource (iii, 50 pages) : color illustrations |
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text txt rdacontent |
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computer c rdamedia |
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online resource cr rdacarrier |
| Note |
"December 2016." |
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"GAO-17-102." |
| Bibliography |
Includes bibliographical references |
| Note |
Description based on online resource, PDF version; title from cover (GAO web site, viewed Jan. 23, 2017). |
| Contents |
Background. -- Full extent of retirement account investment in unconventional assets is unknown, but custodians reported nearly half a million accounts invested in unconventional assets in 2015. -- Retirement account owners investing in unconventional assets are responsible for account management and compliance. -- IRA owners with unconventional assets can face challenges with tax liability, valuation, and distribution, and IRS provides limited guidance to assist them. -- Conclusions. -- Recommendations for executive action. -- Agency comments and our evaluation. |
| Summary |
Federal law places few restrictions on the types of investments allowable in tax-favored retirement accounts, such as IRAs or employer-sponsored 401(k) plans. Recent federal and state investigations and litigation have raised questions as to whether investing in unconventional assets may jeopardize the accounts’ tax-favored status, placing account owners’ retirement security at risk. GAO was asked to examine issues related to the potential risks and responsibilities associated with investments in unconventional assets. GAO examined: (1) what is known about the prevalence of accounts that invest in unconventional assets; (2) how these accounts are managed; and (3) what challenges are associated with administering these retirement accounts. GAO reviewed relevant federal laws, regulations, and guidance; analyzed data collected from the retirement industry; analyzed available industry documents; and reviewed 334 related consumer complaints collected from three federal agencies and two independent entities. GAO is making three recommendations to the Commissioner of Internal Revenue to, among other things, improve guidance for account owners with unconventional assets on monitoring for ongoing federal tax liability and to clarify how to determine the fair market value of hard-to-value unconventional assets. |
| Subject |
United States. Internal Revenue Service -- Rules and practice.
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Retirement income -- United States -- Planning.
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Individual retirement accounts -- Taxation -- Law and legislation -- United States.
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Self-directed individual retirement accounts -- Evaluation.
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| Genre/Form |
Online resources.
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| Added Author |
United States. Congress. Senate. Committee on Finance, sponsoring body.
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| Added Title |
Improved guidance could help account owners understand the risks of investing in unconventional assets |
| Running Title |
GAO-17-102 unconventional assets |
| Gpo Item No. |
0546-D (online) |
| Sudoc No. |
GA 1.13:GAO-17-102 |
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