Author : | Paul Winn, CLU, ChFC |
Course Length : | Pages: 77 ||| Word Count: 35,378 ||| Review Questions: 23 ||| Final Exam Questions: 30 |
CPE Credits : | 6.0 |
IRS Credits : | 6 |
Price : | $53.95 |
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 2465 |
Description : | Individual Retirement Accounts examines the rules governing traditional and Roth IRAs, Education IRAs (now called Coverdell Education Savings Accounts), simplified employee pensions and SIMPLEs. With respect to traditional IRAs, the course considers the issues of eligibility, contribution limits and investment vehicles. Tax treatment of traditional IRA funds is discussed, including the treatment of contributions, accumulations, transfers and distributions. The premature distribution penalties and its exceptions are addressed. Roth IRAs, created by TRA’97, are discussed, including eligibility, contribution limits and distributions. Conversions from traditional to Roth IRAs are examined and the tax consequences discussed. The increased limits authorized by the Economic Growth and Tax Relief Reconciliation Act of 2001 are addressed and the Age 50+ catch-up provisions are explained. At the conclusion of this course, the student can be expected to understand:
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Usage Rank : | 20030 |
Release : | 2025 |
Version : | 1.0 |
Prerequisites : | None. |
Experience Level : | Overview |
Additional Contents : | Complete, no additional material needed. |
Additional Links : |
IRS Newsroom
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Advance Preparation : | None. |
Delivery Method : | QAS Self Study |
Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
Revision Date : | 25-Jan-2025 |
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 - 2465 |
Keywords : | Taxes, Individual, Retirement, Accounts, cpe, cpa, online course |
Learning Objectives : |
Course Learning Objectives Upon completion of this basic course, the student should be able to:
2. Explain the tax treatment of contributions to and distributions from traditional and Roth IRAs. 3. Describe the benefits of tax-deferred accumulation. 4. Explain the rules concerning permitted IRA investments. 5. Discuss traditional and Roth IRA distribution rules. 6. Explain Coverdell Education Savings Account contribution and distribution rules and their tax implications. 7. Discuss the contribution and distribution rules that apply to SEP IRAs and SIMPLE IRAs. Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
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Course Contents : | Course Learning Objectives How You Will Learn Why This Information is Important and How You Can Use It Chapter 1 - Traditional Individual Retirement Accounts Chapter Learning Objectives Important Lesson Points Background, Definition & Eligibility Individual Retirement Accounts Affected by SECURE Act and Disaster Acts SECURE Act IRA Contribution Changes Elimination of Age Limit on Traditional IRA Contributions Taxable Non-Tuition Fellowship and Stipend Payments Considered Compensation Certain Foster Care Payments as Basis for Non-Deductible IRA Contribution SECURE Act and SECURE Act 2.0 IRA Distribution Changes Minimum Distributions Required at Age 73 Certain Qualified Birth or Adoption Distributions Avoid Early Distribution Penalty Certain Inherited IRA Balances Must be Fully Distributed within 10 Years Qualifying Longevity Annuity Contract Rules Changed Annuity Periodic Payment Flexibility Disaster Act IRA Distribution Changes Premature Distribution Penalty for Emergency Distributions Premature Distribution Penalty for Terminally Ill Individuals Premature Distribution Penalty—Correcting Excess Contributions Charitable Distributions from Individual Retirement Accounts Statute of Limitations on RMD Insufficiency and Excess Contribution Penalties Expansion of Employee Plans Compliance Resolution System Traditional IRA Rules Earned Income Limits on Contributions Maximum Annual Contributions Traditional IRA Tax Considerations Traditional IRA Tax Considerations—Contributions Tax Treatment of Contributions by Active Participants Tax Credits Repeal of the Saver’s Credit Summary Review Quiz #1 Traditional IRA Tax Considerations—Accumulations Traditional IRA Tax Considerations—Rollovers Eligible Rollover Distributions Rollover of Qualified Birth or Adoption Distributions Eligible Rollover Distributions Direct and Indirect Rollovers Mandatory Withholding Avoiding Rollover Withholding Indirect Rollovers Subject to Timing and Frequency Limitations EGTRRA Permits Rollover of After-Tax Contributions Summary Review Quiz #2 Distribution Premature Distributions Premature Distributions Avoiding Tax Penalty Pro-Rata Distribution of Non-Deductible Contributions Required Distributions during Owner’s Lifetime Required Minimum Distribution Amount Required Distributions at Owner’s Death Death before an Owner’s Required Beginning Date Before 2020 Life Expectancy Rule Five-Year Rule Surviving Spouse’s Election Death Before an Owner’s Required Beginning Date After 2019 IRS Proposed Regulations – February 2022 IRS Notice 2022-53 IRS Notice 2023-54 Eligible Designated Beneficiaries Not Limited to 10-Year Rule SECURE Act 2.0 – Surviving Spouse Beneficiaries Uniform Lifetime vs. Single Lifetime Table Revised Life Expectancy – Beneficiaries’ RMD Transition Rules Summary Review Quiz #3 Chapter 2 - Roth Individual Retirement Accounts Chapter Learning Objectives Important Lesson Points Definition & Eligibility Limits on Contributions Transfer of Limited §529 funds to Roth IRAs Roth IRA Tax Considerations Qualified Distributions Tax-Free Non-Qualified Distributions Receive FIFO Tax Treatment Non-Qualified Gain Distributions Before 59 ˝ Subject to Tax Penalty No Lifetime Required Distributions Roth IRA Conversions & Transfers Roth IRA Death Benefit Distributions – Death Before 2020 Life Expectancy Rule Five-Year Rule Roth IRA Owner’s Death Occurring After 2019 Eligible Designated Beneficiaries Not Limited to 10-Year Rule Summary Review Quiz #4 Chapter 3 - Individual Retirement Account Funding Chapter Learning Objectives Important Lesson Points IRA Investment Options Trust or Custodial Account IRA Funding Prohibited IRA Investments Separately-Paid Custodial Fees a Miscellaneous Itemized Deduction Using Annuities to Fund IRAs Non-Tax Benefit #1: Annuity Death Benefits Non-Tax Benefit #2: Annuity Life Income Annuities and the SECURE Act 2.0 Qualifying Longevity Annuity Contracts Divorce After QLAC Purchase Penalty on Partial Annuitization Variable Annuity Suitability Requirements Securities Exchange Commission Rules Regulation Best Interest The Disclosure Obligation The Care Obligation The Conflict of Interest Obligation The Compliance Obligation Effect of Regulation Best Interest Impact of the Disclosure Obligation Impact of the Care Obligation Annuity Sales & Best Interest Obligation Summary Review Quiz #5 Chapter 4 - Education IRAs (Coverdell Education Savings Accounts) Chapter Learning Objectives Important Lesson Points Definition & Eligibility Limits on Contributions Eligible ESA Beneficiaries Tax Considerations Tax-Free ESA Distributions Qualified Education Expenses Eligible Educational Institution Taxation of Excess ESA Distributions Summary Review Quiz #6 Chapter 5 - Simplified Employee Pension IRAs Chapter Learning Objectives Important Lesson Points Introduction New Plan Startup Cost Tax Credit Amount of the Tax Credit SECURE Act 2.0 Changes to the Start-Up Tax Credit Contributions Defined Contribution Plan Limits Apply Certain Employees Must Be Included SEP Contributions for Domestic Employees SEP Integration Permitted Employee Plan Contributions Permitted Active Participant Rules Apply to Employee Contributions Distributions Regular Distributions Premature Distributions Required Minimum Distributions SEP Rollovers Summary Review Quiz #7 Chapter 6 - SIMPLE IRAs Chapter Learning Objectives Important Lesson Points Definition & Eligibility SIMPLEs Offer Less Expensive Alternative to Qualified Plans SIMPLEs Restricted to Small Employers SIMPLE IRA and SIMPLE 401(k) Replacements Replacement by a 401(k) Safe Harbor Plan SIMPLE IRA Contributions Employee Elective Contributions Catch-up Contributions Increased Catch-Up Amounts at Ages 60-63 Increased catch-up amounts are indexed for inflation for years after 2025. Employer Contributions Matching Employer Contributions Student Loan Payments Considered Elective Deferrals Nonelective Employer Contributions SECURE Act 2.0 Authorizes Increased Contributions for SIMPLEs Additional Non-Elective Contributions Permitted Other SIMPLE Requirements Nonrefundable Tax Credit for Lower Income Employees Repeal of the Saver’s Credit SIMPLE Distributions Premature Distributions Exceptions to Premature Distribution Tax Penalty Required Minimum Distributions Rollovers Direct and Indirect Rollovers Rollover Recipient Plan Summary Review Quiz #8 Glossary |