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| Author : | Paul Winn, CLU, ChFC |
| Course Length : | Pages: 53 ||| Review Questions: 15 ||| Final Exam Questions: 25 |
| CPE Credits : | 5.0 |
| IRS Credits : | 5 |
| Price : | $44.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 426 |
| Description : | Employer-sponsored retirement plans, generally referred to in the aggregate as qualified employee plans, constitute one of the important “legs” of the retirement stool that individuals look to for their income in retirement. The other two legs of that stool are personal savings—through investment in securities, deferred annuities, savings accounts, etc.—and Social Security retirement benefits. This course will examine qualified employee plans, their limits and their tax treatment along with a discussion of annuities and their taxation. Annuities offer their owners the opportunity to systematically liquidate a principal sum or save money for a long-term objective. For many annuity buyers, that objective is to provide income during retirement. As we will see in our examination of annuities, they provide owners with a number of advantages; principal among them is their tax treatment. By purchasing and investing in an annuity, a contract owner can avoid current income taxation of earnings. By avoiding current income taxation, earnings that might have been used to pay current income taxes can be invested to produce additional income. Annuities’ tax advantages aren’t limited to tax deferral, however; annuities offer additional tax advantages. For example, an investor purchasing a variable annuity can change his or her investment allocation in the contract’s variable subaccounts whenever desired. Typically, such changes are made in order to implement new objectives or to modify the level of risk assumed. From a tax point of view, the important issue is that the contract owner can make these changes without being required to recognize income as would be required if, for example, the investor liquidated his or her stock portfolio in order to purchase bonds. In addition to these tax benefits, a contract owner that elects to annuitize his annuity contract, i.e. to take a periodic income from it, will find that part of each periodic income payment may be tax free as a return of his or her investment in the annuity contract. |
| Usage Rank : | 15333 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Topic No. 410 Pensions and Annuities
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 26-Jan-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 - Registered Tax Return Preparers - 426 |
| Keywords : | Taxes, Tax, Treatment, Retirement, Plans, Pensions, Annuities, cpe, cpa, online course |
| Learning Objectives : |
Course Learning Objectives Upon completion of this course, you should be able to:
Chapter 1
Chapter 2
Chapter 3
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| Course Contents : | Course Learning Objectives Introduction Chapter 1 - Qualified Retirement Plans Chapter Learning Objectives Introduction Defined Benefit Plans Defined Benefit/401(k) Plans Defined Contribution Plans Individual Participant Accounts Characterize Defined Contribution Plans Target Benefit Plans Target Benefit Plan Investment Risk Target Benefit Plans Favor Older Plan Participants Profit Sharing Plans Traditional Profit Sharing Plans Age-Based Profit Sharing Plans 401(k) Plans 403(b) Tax Sheltered Annuity Plans Multiple Employer Plans for Tax Sheltered Annuity 403(B) Plans Simplified Employee Pension (SEP) SEPs for Domestic Employees Savings Incentive Match Plan for Employees (SIMPLE) Roth Contributions to SEPs & SIMPLEs Starter 401(k) & 403(b) Plans Authorized Small Financial Incentives to Encourage Plan Participation Tax Credits for Small Employers – Military Spouse Employment & Accelerated Plan Eligibility Summary Chapter Review Chapter 2 - Tax Treatment of Qualified Plans Chapter Learning Objectives Introduction Contributions to Qualified Employee Plans Employer Plan Contributions Defined Benefit Plan Limit on Deductible Employer Contributions Defined Contribution Plan Limit on Deductible Employer Contributions Retroactive Individual 401(k) Elective Deferrals for Sole Proprietors Additional SIMPLE Nonelective Contributions Employee Plan Contributions 403(b) Plan Contribution Limit Increased for Long-Service Employees Catch-up Contributions for Participants Age 50 or Older Designated Roth Accounts Student Loan Payments Treated as Elective Deferrals for Employer Match Qualified Student Loan Payment Certain SIMPLE Contribution Limits Increased Life Insurance in a Qualified Employee Plan Requirements for Plan Life Insurance Life Insurance Premiums Qualifying Longevity Annuity Contract Changes Distributions from a Qualified Employee Plan Cost Basis in a Qualified Employee Plan How Benefits are Distributed Lump Sum Plan Distributions Plan Distributions as Periodic Payments Fully Taxable Periodic Payments Partly Taxable Periodic Payments Figuring the Tax-Free Part of Periodic Payments – Simplified Method Figuring the Tax-Free Part of Periodic Payments – General Rule Early Distributions Qualified Disaster Distribution Repaying Qualified Birth or Adoption Distributions Exemption from Tax Penalties for Premature Distributions by Terminally Ill Premature Distribution Tax Penalty at Age 50 for Private Sector Firefighters Eliminated Simplifying Hardship Distributions Modifying the Premature Distribution Tax Penalty for Public Safety Officers Modification of Premature Distribution Tax Penalty to Other Eligible Government Employees Emergency Expense Withdrawals Emergency Expense Withdrawal Limitations Amount Distributed may be Repaid Limitation on Subsequent Emergency Distributions Domestic Abuse Distributions Involuntary Plan Distribution Limit Increased 403(b) Hardship Distribution Rules Eased Required Minimum Distributions Lifetime Distribution Requirements for Designated Roth Accounts Eliminated Plan Distributions of Non-Cash Assets Rollovers Distributions Ineligible for Rollover Direct and Indirect Rollovers Qualified Disaster Distribution Repayments Plan Loans Specific Repayment Term Required Substantially-Level Amortization Required Maximum Loan Amount Limited Loan Agreement Required The SECURE Act 2.0 Plan Loan Changes Death Benefits Roth Account Distributions Qualified Roth Distributions Tax-Free Nonqualified Roth Account Distributions Summary Chapter Review Chapter 3 - Annuities Chapter Learning Objectives Introduction Deferred Annuity Immediate Annuity Qualified Annuity Nonqualified Annuity Death Benefits Annuitization Methods Temporary Annuity Life Annuity Nonqualified Annuity Income Tax Treatment Premiums Cash Values Ownership by Non-natural Persons Generally Ownership by Natural Persons and Certain Trusts Surrenders and Withdrawals Charges Against Cash Value for LTC Premiums not Currently Taxable Annuity Loans Premature Distributions Annuity Payments During Lifetime Fixed Annuities Variable Annuities Annuitant’s Death After Annuity Starting Date Contract Owner’s Death Before Annuity Starting Date Estate Taxation of Annuities Summary Chapter Review Glossary |
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