So much goes in to creating the rules for IRAs and Solo 401ks. As a result, it can be confusing when you research them and and try to figure out where to go to find those rules. You will find a list of the various sources of government interaction and information below relating to retirement accounts and the government branches that create the guidelines we adhere to.
The Legislative Branch, the Executive Branch and the Judicial Branch are the three branches of the federal government.
*The Legislative Branch contains Congress, and they write the laws that pertain to IRA’s and Solo 401k’s.
*The Executive Branch enforces the laws that Congress has passed. Under the Executive Branch are the Treasury Department and the Department of Labor, which pertain to IRA’s and Solo 401k’s. The Treasury Departments Internal Revenue Service (IRS) focuses on taxation and enforces tax rules.
*The Judicial Branch interprets the laws and regulations that Congress passed.
The tax code, rules and regulations are extremely complicated and there are many different sources of information regarding them.
*Internal Revenue Code is the law. It is the list of laws passed by Congress. It is considered the most authoritative source of information.
*Treasury Regulations explain the legislation laws. They develop rules to execute the legislation.
*Revenue Rulings are the official IRS interpretations of the laws and regulations created by the Internal Revenue Service (IRS) in the United States Department of the Treasury of the United States federal government that apply the law to particular factual situations. A revenue ruling can be relied on as precedent by all taxpayers.
* Revenue Procedures are the official IRS statement providing guidance on tax matters.
*Announcements and Notices are issued when taxpayers guidance is needed very quickly.
*IRS Publications educate the public on existing tax laws. They provide specific information on topics. For example, Publication 590 A pertains to IRA contributions and 590 B pertains to IRA distributions.
*Forms and Instructions are updated annually to assist taxpayers on how to complete IRS forms.
*News Releases announce information of general interest to taxpayers.
* Private Letter Rulings are opinion from the IRS to a specific written request from a taxpayer. They cost $10,000 each and may only be relied upon by the taxpayer it was written for.
Do you have questions about IRAs and 401(k)s? Contact us! We will happily answer your questions. Having a good CPA (tax advisor) and tax attorney can also be valuable for understanding the rules regarding Self-Directed IRA’s and Solo 401’s.
To contact us, call 714-831-1866 or email is at info@uDirectIRA.com.