In this joint episode with the Personal Financial Planning (PFP) Section podcast, host Cary Sinnett discusses recent IRS communications around certain exchange-traded fund (ETF)- based diversification strategies with Robert Keebler, CPA/PFS, MST, AEP (Distinguished), CGMA.
Sec. 351 ETF contributions may be permissible, but rapid redemptions for diversified securities may be taxable under the step-transaction doctrine. Timing, prearranged plans, marketing and communications are key.
Practitioners should review completed and pending transactions, documentation, reporting, disclosure, privilege, and penalty protection, coordinating with investment advisers and tax counsel as appropriate.
Questions answered in this episode:
AICPA resources
IRS resources
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