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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 163 ||| Word Count: 78,668 ||| Review Questions: 120 ||| Final Exam Questions: 80 |
| CPE Credits : | 16.0 |
| IRS Credits : | 16 |
| Price : | $125.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 2365 |
| Description : | We are all (including tax practitioners) getting older, and the need for effective retirement planning has never been greater. This course is essential for participants who wish to attain a comfortable retirement for themselves and their clients by maximizing tax-saving strategies. Retirement income needs are calculated; net after-tax Social Security benefits are determined; and distribution options from IRAs and retirement plans are explored. Special consideration is given to the tax treatment of the home and business on retirement. Buy-sell agreements are discussed and eldercare planning is examined. |
| Usage Rank : | 20000 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Retirement Planning
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 14-Sep-2024 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2365 |
| Keywords : | Taxes, Fast, Track, Retirement, Planning, from, Tax, Perspective, v14, cpe, cpa, online course |
| Learning Objectives : |
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 1 How Much Do You Need To Retire? At the start of Chapter 1, participants should identify the following topics for study:
* Common pitfalls * Popular retirement myths * Defining retirement * Developing a plan * Savings * Assets After reading Chapter 1, participants will be able to:
2. Determine retirement using the major levels of retirement and key questions that have financial and personal ramifications. 3. Identify retirement costs and income needs of clients based on their current budget, recognize tax savings strategies, and identify guidelines when purchasing investment assets. Chapter 2 Social Security Benefits & Retirement Planning At the start of Chapter 2, participants should identify the following topics for study:
* How Social Security works * Social Security participants * Social Security benefits * Retirement benefits * Direct deposit * Social Security tax * Total disability benefits * Survivors’ benefits * Medicare After reading Chapter 2, participants will be able to:
2. Identify the requirements to receive Social Security retirement benefits, and determine clients’ retirement benefits following a multi-step calculation process. 3. Recognize Social Security taxes, their tax rates, and covered earnings allowing better retirement planning. 4. Specify the eligibility requirements of Social Security disability benefits and survivors’ benefits, and determine what constitutes Medicare Part A and Medicare Part B recognizing their qualifications. Chapter 3 Retirement Plans At the start of Chapter 3, participants should identify the following topics for study:
* Basic requirements of a qualified pension plan * Basic types of corporate plans * Types of defined contribution plans * Self-employed plans - Keogh * Distribution & settlement options of IRAs * Tax-free rollovers for IRAs * Roth IRAs * Simplified employee pension plans (SEPs) * SIMPLE plans After reading Chapter 3, participants will be able to:
2. Specify the requirements of the basic forms of qualified pension plans. 3. Determine the differences between defined contribution and defined benefit retirement plans and specify several types of defined contribution plans recognizing their impact on retirement benefits. 4. Recognize self-employed plans from qualified plans for other business types and owners. 5. Identify the requirements of IRAs, SEPs, and SIMPLEs and tax-free Roth IRA distributions specifying strategies to maximize plan bene Chapter 4 Distributions from Retirement Plans At the start of Chapter 4, participants should identify the following topics for study:
* Mandatory basis rule for annuity payments * Nonqualifying lump-sum distributions * Treatment options for lump-sum distributions * Eligible rollover distributions * 20% withholding * Rollover period * Premature distributions * Minimum distribution rules * Making charitable gifts with plan balances After reading Chapter 4, participants will be able to:
2. Determine what constitutes a lump-sum distribution permitting clients to receive special tax treatment on such distributions. 3. Recognize the key components of rollovers that can be used to reinvest cash or other assets without including the amount in income. 4. Specify the tax consequences of taking premature distributions stating how to avoid the 10% penalty. 5. Identify the minimum distribution rules and ways to avoid the 50% penalty associated with either taking smaller distributions than required or with taking distributions after the required beginning date for minimum distributions. Chapter 5 Nonqualified Plans At the start of Chapter 5, participants should identify the following topics for study:
* Purposes & benefits * Constructive receipt * Economic benefit * Funded company account plan * Segregated asset plan * Tax consequences * Accounting * Estate planning considerations * Withholding, Social Security & IRAs After reading Chapter 5, participants will be able to:
b. Specifying deferred compensation patterns set forth in R.R. 60-31 citing the taxability of each; and c. Determining unfunded and funded plans stating the use of company assets or bookkeeping accounts to avoid employee taxation. Chapter 6 Life Insurance, Annuities & Buy-sell Agreement At the start of Chapter 6, participants should identify the following topics for study:
* Types of life insurance * Life insurance trusts * Annuities * Buy-sell agreements * Purchase price & terms * Community property * Professional corporations * S corporations * Sole shareholder planning After reading Chapter 6, participants will be able to:
2. Recognize the tax treatment of life insurance proceeds by:
b. Determining the gift tax associated with transfers of life insurance policies. 4. Specify the reasons for using an irrevocable life insurance trust in an estate plan identifying trust considerations and the differences between deferred and private annuities. 5. Determine what constitutes entity purchase and cross-purchase buy-sell agreements recognizing tax and legal advantages. Chapter 7 Home Sales & Moving Expenses At the start of Chapter 7, participants should identify the following topics for study:
* Rate groups * AMT * Home sales under §121 * Special rules for ownership & use requirements * Prorata exception * 1099-S reporting * Distance & time tests for moving expenses * Deductible moving expenses * Reporting moving expenses After reading Chapter 7, participants will be able to:
2. Recognize the key elements and application of the §121 home sale exclusion and identify safe harbor regulations associated with the home sale exclusion. 3. Identify when and if a taxpayer can deduct moving expenses and exclude moving expense reimbursements. Chapter 8 Estate Planning At the start of Chapter 8, participants should identify the following topics for study:
* Applicable exclusion amount * Stepped-up basis * Basic estate planning goals * Simple will * Types of trusts * Charitable trusts * Insurance trusts * Family documents * Private annuities After reading Chapter 8, participants will be able to:
b. Recognizing the unlimited marital deduction and its effect on the gross estate of the value of property; and c. Specifying the applicable exclusion amounts for various years of death. 3. Specify basic estate planning goals, and recognize the benefits and drawbacks of the primary dispositive plans. 4. Identify various types of estate trusts and family documents that every taxpayer should consider, and determine the advantages and disadvantages of the former private annuity format. |
| Course Contents : | Chapter 1 - How Much Do You Need To Retire? Mapping Mechanics Pitfalls & Myths Common Pitfalls Popular Retirement Myths Plan For 10 to 15 Retirement Years Stay With One Company to Retire With the Best Benefits Pension Benefits Are Guaranteed by the Government Preserve Capital Retirees Are Taxed Less Housing Costs Are Less Just the Spouse and Me Social Security Will Gap Any Savings or Pension Benefits Shortfall Medicare Will Cover Medical Bills Retirees End Up In a Nursing Home Defining Retirement When Do I Want To Retire? What Kind Of Lifestyle Do I Want? Do I Want To Move? Determining Retirement Costs & Income Needs Developing a Plan Savings Strategies for Savings Assets Stay Liquid - Be Able To Get Your Money Back Grow - Make Money on Your Money Shelter - Get Tax Benefits Build - Don’t Spend Your Benefits Avoid Linking - Each Investment Must Stand On Its Own Analyze - Investigate the Investment Chapter 2 - Social Security Benefits & Retirement Planning Will Social Security Be There? How Social Security Works Social Security Participants Social Security Benefits Retirement Benefits Qualification Calculation Average Indexed Monthly Earnings (AIME) Primary Insurance Amount (PIA) Cost of Living Adjustment Using Dollar Bend Points Adjustment for Retirement Date Early Retirement Effect of Late Retirement Earnings Reduction Formula Annual Report of Earnings Special Monthly Rule Personalized Benefit Estimate Impact of Private Pension Direct Deposit Social Security’s Payroll Tax or FICA Rates Covered Earnings Multiple Employers Covered Employment Self-Employment Tax after Retirement Social Security as a Retirement Planning Element Total Disability Benefits Family Members HIV & AIDS Children Qualification Survivors Benefits Divorce Medicare Who Is Eligible For Hospital Insurance (Part A)? Who Can Get Medical Insurance (Part B)? Prescription Drug Coverage (Part D) How Do You Get Medicare? What Does Medicare Pay For? What Medicare Does Not Pay For? Medigap Insurance Chapter 3 - Retirement Plans Deferred Compensation Qualified Deferred Compensation Qualified v. Nonqualified Plans Major Benefit Current Deduction Timing of Deductions Part of Total Compensation Compensation Base Salary Reduction Amounts Benefit Planning Corporate Plans Advantages Current Deferred Disadvantages Employee Costs Comparison with IRAs & Keoghs Basic ERISA Provisions ERISA Reporting Requirements Fiduciary Responsibilities Bonding Requirement Prohibited Transactions Additional Restrictions Fiduciary Exceptions Loans Employer Securities Excise Penalty Tax PBGC Insurance Sixty-Month Requirement Recovery Against Employer Termination Proceedings Plans Exempt from PBGC Coverage Basic Requirements of a Qualified Pension Plan Written Plan Communication Trust Requirements Permanency Exclusive Benefit of Employees Highly Compensated Employees Reversion of Trust Assets to Employer Participation & Coverage Age & Service Coverage Percentage Test Ratio Test Average Benefits Test Numerical Coverage Related Employers Vesting Full & Immediate Vesting Minimum Vesting Unified Vesting Nondiscrimination Compliance Contribution & Benefit Limits Defined Benefit Plans (Annual Benefits Limitation) - §415 Defined Contribution Plans (Annual Addition Limitation) - §415 Limits on Deductible Contributions - §404 Assignment & Alienation Miscellaneous Requirements Basic Types of Corporate Plans Defined Benefit Mechanics Defined Benefit Pension Defined Contribution Mechanics Discretion Favorable Circumstances Types of Defined Contribution Plans Profit-Sharing Requirements for a Qualified Profit-Sharing Plan Written Plan Eligibility Deductible Contribution Limit Substantial & Recurrent Rule Money Purchase Pension Cafeteria Compensation Plan Thrift Plan Section 401(k) Plans Death Benefits Defined Benefit Plans Money Purchase Pension & Target Benefit Plans Employee Contributions Non-Deductible Life Insurance in the Qualified Plan Return Universal Life Compare Plan Terminations & Corporate Liquidations 10-Year Rule Lump-Sum Distributions Asset Dispositions IRA Limitations Self-Employed Plans - Keogh Mechanics Contribution Timing Controlled Business General Limitations Effect of Incorporation Mechanics Parity with Corporate Plans Types of Keogh Plans Figuring Retirement Plan Deductions For Self-Employed Self-Employed Rate Determining the Deduction Individual Plans - IRAs Deemed IRA Mechanics - §219(b) Phase-out - §219(g)(2) Special Spousal Participation Rule - §408A(c)(3) Spousal IRA Eligibility Contributions & Deductions Employer Contributions Retirement Vehicles Distribution & Settlement Options Life Annuity Exemption Minimum Distributions Required Minimum Distribution Definitions Required Minimum Distributions During Owner’s Lifetime Sole Beneficiary Spouse Who Is More Than 10 Years Younger Required Minimum Distributions in Year of the Owner's Death Beneficiaries - Distributions after the Owner’s Death Estate Tax Deduction Charitable Distributions from an IRA Post-Retirement Tax Treatment of IRA Distributions Income In Respect of a Decedent Estate Tax Consequences Losses on IRA Investments Prohibited Transactions Effect of Disqualification Penalties Borrowing on an Annuity Contract Tax-Free Rollovers Rollover from One IRA to Another Waiting Period Between Rollovers Partial Rollovers Rollovers from Traditional IRAs into Qualified Plans Rollovers of Distributions from Employer Plans Withholding Requirement Waiting Period Between Rollovers Conduit IRAs Keogh Rollovers Direct Rollovers From Retirement Plans to Roth IRAs Rollovers of §457 Plans into Traditional IRAs Rollovers of Traditional IRAs into §457 Plans Rollovers of Traditional IRAs into §403(B) Plans Rollovers from SIMPLE IRAs Roth IRA - §408A Eligibility Contribution Limitation Roth IRAs Only Roth IRAs & Traditional IRAs Conversions Recharacterizations Reconversions Taxation of Distributions No Required Minimum Distributions Simplified Employee Pension Plans (SEPs) Contribution Limits & Taxation SIMPLE Plans SIMPLE IRA Plan Employee Limit Other Qualified Plan Set up Contribution Limits Salary Reduction Contributions Employer Matching Contributions Deduction of Contributions Distributions SIMPLE §401(k) Plan Chapter 4 - Distributions from Retirement Plans Annuity Payments - §72 General Rule - Prior Law Exclusion Ratio Investment in Contract (Cost) Expected Return Simplified Alternative Rule - Prior Law Mandatory Basis Rule - Current Law Annuity Benefits Paid Over Two Lives Withholding & Estimated Tax Lump-Sum Distributions Qualified Distributions Nonqualified Distributions Treatment Options for LSDs 10-Year Averaging Employer Securities - Net Unrealized Appreciation (NUA) Capital Gain Treatment “Grandfather” or Transition Rules Rollovers Eligible Rollover Distributions 20% Withholding Exceptions Direct Rollover Rollover Period Annual Usage Rollover of Noncash Distributions Qualified Domestic Relations Order Rollover Surviving Spouse Rollover Premature Distributions - 10% Penalty Exemptions Death Disability Equal Periodic Payments Total Value & Aggregation Requirement Five-Year Requirement Medical Expenses Qualified Domestic Relations Order Recapture Tax Minimum Distribution Rules Required Beginning Date for Minimum Distributions Minimum Distribution Rules Making Charitable Gifts with Plan Balances Chapter 5 - Nonqualified Plans Postponement of Income Advantages IRS Scrutiny & Approval Nondiscrimination ERISA Funding No Immediate Cash Outlay Annual Report Notice Requirement Purposes & Benefits Benefit Formula Incentive Deferred Bonuses Contractual Arrangement Necessary Provisions Tax Status Service’s Position Rationale Congressional Moratorium No Ruling or Regulation Policy Constructive Receipt Beyond Actual Receipt Simple Set-Asides Are Not Possible Revenue Ruling 60-31 Regulations Time & Control Concept Control Timing After-the-Fact Contract Amendment to Existing Contract Economic Benefit Has Something of Value Been Transferred? Insurance Coverage Has a Calculable Value Segregated Funds Have Immediate Economic Value Value v. Control Revenue Ruling 60-31 Situation 1 Situation 2 Situation 3 Situation 4 Situation 5 General Principles Unfunded Bare Contractual Promise Plan - Type I Risk Funded Company Account Plan - Type II Ownership & Segregation Bookkeeping Reserve or Separate Account Employee Still Bears Economic Risk Limited Protection Investment of Deferred Amounts Life Insurance Premiums Third Party Guarantees Segregated Asset Plan - Type III Section 83 Approach Tight Rope Format Transferable or Not Subject To A Risk of Substantial Forfeiture Substantial Restrictions Redemption or Forfeiture Condition Related to a Purpose of the Transfer Noncompetition Consultation Time Alone is Not Enough Realization & Taxation 30-Day Election Period Deduction Allowed Timing Withholding Tax Consequences Reciprocal Taxation/Deduction Rule No Difference for Cash or Accrual Separate Accounts for Two or More Participants Employer Deduction Traps Income Tax on Employer-Held Assets Inclusion in Income Under §409A State Tax Issues Accounting Two Sets of Rules Financial Accounting Rules IRS Rules Estate Planning Considerations Death During Deferral Income Tax Consequences Estate Tax Consequences Gift Tax Consequences Withholding, Social Security & IRAs Other Payroll Taxes Social Security Benefits IRAs Chapter 6 - Life Insurance, Annuities & Buy-Sell Agreements Purpose Tax Overview Income Tax Transfer-for-Value Rule Employee Death Benefit - §101(b) (Repealed) Premiums Lifetime Benefits Section 72 Estate Taxes - §2042 & §2035(a) Ownership Gift Taxes Community Property Gift Danger Types of Life Insurance Term Insurance Whole Life (Permanent) Insurance Straight Life v. Limited Payment Modified v. Preferred Endowment Insurance Universal Life Charges Premium Payment Variable Life Investment Accounts Taxation Survivor Life Single Premium Whole Life Dividends Life Insurance Trust Considerations Annuities Deferred Annuity Private Annuity Unsecured Promise Regulations Restrict Private Annuity Income Buy-Sell Agreements Definition Contractual Format Funding Life Insurance Funding Term vs. Whole Life Policy Ownership & Premium Payment Entity & Cross-Purchase Agreements Tax Consequences - Cross-Purchase Agreements Non-Deductible Premiums No Dividend Danger Tax Consequences - Entity Purchase Agreements Non-Deductible Premiums Dividend Danger - §302 Exception to Dividend Treatment Constructive Ownership (Attribution) Rules “Estate/Beneficiary” Rule “Family/Trust/Corporation” Rule No Gain on Sale Estate Tax Valuation Using the Buy-Sell Agreement to Set Value Enforcement of Contract Price Purchase Price & Terms Valuation Community Property Professional Corporations Marketability Problems Controlled Disposition S Corporations Sole Shareholder Planning Complete Liquidations Alternative Dispositions Use of Life Insurance Estate Valuation One-Way Buy-Outs Chapter 7 - Home Sales & Moving Expenses Introduction Capital Gains & Qualified Dividends Rates - §1 28% Rate Group 25% Rate Group - Unrecaptured §1250 Gain 15% (or sometimes 20%) Rate Group - Adjusted Net Capital Gain The Hidden Rate - Net Investment Income Tax - §1411 AMT Small Business Stock Netting Capital Gains & Losses Analysis Home Sales - §121 Exclusion Amount Analysis Reduced Home Sale Exclusion for Nonqualified Use Computation Nonqualified Use Post-May 6, 1997 Depreciation Surviving Spouse Home Sale Exclusion Home Sale Exclusion for Decedent’s Estate Ownership & Use Requirements Special Rules Occasional Absences Tacking of Prior Holding Period Rental of Personal Residence Depreciation Vacant Land Mixed Personal & Business Use of Home Depreciation after May 6, 1997 Divorce Prorata Exception Prorata Clarification Safe Harbor Regulations Change in Place of Employment Health Unforeseen Circumstances Two-Year Requirement Remainder Interests 1099-S Reporting Revenue Procedure 98-20 Moving Expenses - §217 Distance Test Time Test Time Test for Employees Time Test for Self-employment Deductible Expenses Travel Expenses Travel by Car Location of Move Reporting Reimbursements Chapter 8 - Estate Planning Unlimited Marital Deduction Outright To Spouse Marital Deduction Trust Qualified Terminable Interest Property (QTIP) Trust Applicable Exclusion Amount Spousal Portability of Unused Exemption Amount - §2010(c)(2) Stepped-up Basis - §1014 Basic Estate Planning Goals Primary Dispositive Plans Simple Will Danger for Larger Estates Probate Transfers within Probate Disposition of Property without a Will Transfers outside Probate Assets Not Subject to a Will Assets Subject to a Will Trusts Types of Trusts Living Trusts Testamentary Trusts Revocable & Irrevocable Living “A-B” Revocable Trust Living “A-B-C” (QTIP) Trust Impact of Spousal Portability on Trust B under TUIRJCA Charitable Trusts Charitable Remainder Trusts Charitable Income Trusts Insurance Trusts Family Documents Living Will Property Agreement & Inventory Durable Power Of Attorney Power of Attorney for Health Care Conservatorship Funeral Arrangements Anatomical Gifts Private Annuity? Advantages to the Transferor Disadvantages to the Transferor Advantages to the Transferee Disadvantages to the Transferee Regulations Restrict Private Annuity Income Glossary |
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