Morgan Chu

Morgan Chu, Harvard Board of Overseers

Morgan Chu is a partner at Irell & Manella LLP. He is a litigator and intellectual property expert who has won numerous high-profile cases. He is recognized as the one who “delivers staggering results for clients.”

“In City of Hope v. Genentech, Chu won the largest damage award in California ever affirmed by an appeals court, with the client ultimately receiving more than $480 million. In a lawsuit against Microsoft involving its operating system, MS-DOS, he secured a jury award of $120 million and a settlement from Microsoft after the court issued a global injunction against MS-DOS. TiVo v. EchoStar resulted in over $600 million paid to TiVo by the defendant after the jury verdict and post-trial proceedings, thanks to Morgan Chu. In another case, Immersion v. Sony, the plaintiff received more than $150 million.”

Morgan Chu holds five postgraduate degrees, including a Ph.D. from the University of California, Los Angeles; an M.S.L. from Yale University; and a J.D. from Harvard University.

The difference between a designated Roth account and a Roth IRA

In USA, if you meet certain conditions, you can get a special type of retirement plan. This retirement plan is named Roth IRA – Roth, after Senator William Roth, and IRA is short for Individual Retirement Account.

What’s the difference between a designated Roth account and a Roth IRA?

According to the IRS the top ten differences are:

1.      Regarding the number of investment choices, a Roth IRA offers you many choices – as long as not prohibited – while a designated Roth account is limited to the offer of your plan;

2.      Anyone with earned income can participate in a Roth IRA while in a designated Roth account you must be a participant in a §401(k), §403(b) or §457 governmental plan that allows designated Roth contributions;

3.      Contribution limits are the 3rd big difference between the two retirement plans. The Roth IRA has a contribution limit of $5,000 or $6,000, if you are 50 years old or older, while the designated one has a limit of $16,500 or $22,000 (if you are 50+);

4.      Recharacterization of rolled over amounts is allowed in Roth but not allowed in designated accounts;

5.      The minimum distributions requirement appears only after the original IRA owner’s death with a Roth plan;

6.      With a IRA Roth plan, nonqualified distributions are distributed in this order: nontaxable contributions first and taxable earnings second. With a designated Roth account nonqualified distributions are pro-rated between Roth contributions (nontaxable) and earnings (taxable);

7.      Regarding withdrawals, if you have a Roth IRA you can withdraw at any time. With a designated Roth you can withdraw only when allowed by the terms of the plan. It is good to know that, depending on distribution, both are subject to tax;

8.      A Roth IRA does not offer you a loan while a designated one might offer you if your plan allows it;

9.      With a Roth IRA a 5-year holding period for qualified distribution begins January 1 of the year a contribution is made to any Roth IRA while in the case of a designated Roth the 5 year holding period begins January 1 of the year a contribution is made to any Roth IRA;

10.  With a Roth IRA you can name anyone as beneficiary while in the case of a designated Roth, if you are married, your spouse must consent to any non-spouse beneficiary.

For additional information, see “IRA Resources” at www.irs.gov/retirement