Fast Track Retirement Planning - 24 CPE
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.
Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless otherwise indicated, no correct or incorrect feedback for any exam question will be provided.
Course Level: Overview. This program is appropriate for professionals at all organizational levels.
Field of Study: Taxes
Prerequisite: General understanding of federal income taxation.
Advanced Preparation: None
Learning Assignments & Objectives
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment.
Chapter 1 How Much Do You Need To Retire?
At the start of Chapter 1, participants should identify the following topics for study:
* Mapping mechanics
* Common pitfalls
* Popular retirement myths
* Defining retirement
* Developing a plan
After reading Chapter 1, participants will able to:
1. Recognize the importance of personal retirement maps to suit client objectives & lifestyles and summarizethe basic guidelines of retirement planning, including the four common pitfalls and the ten misconceptions of retirement.
2. Define retirement using three major levels of retirement and three key questions that have financial and personal ramifications.
3. Identify retirement costs and income needs of clients based on their current budget, date tax savings strategies and name six basic guidelines when purchasing investment assets.
After studying the materials in Chapter 1, answer the exam questions 1 to 21.
Chapter 2 Social Security Benefits & Retirement Planning
At the start of Chapter 2, participants should identify the following topics for study:
* Will Social Security be there?
* How Social Security works
* Social Security participants
* Social Security benefits
* Retirement benefits
* Direct deposit
* Social security tax
* Total disability benefits
* Survivors’ benefits
After reading Chapter 2, participants will able to:
1. Show how Social Security funds are assessed and then paid, outline the system’s mechanics, and identify qualified Social Security participants including their eligibility for benefits.
2. List the requirements to receive Social Security retirement benefits, and state clients’ retirement benefits following a four-step calculation process.
3. Identify two Social Security taxes, their tax rates and covered earnings allowing better retirement planning.
4. Name the eligibility requirements of Social Security disability benefits and survivors’ benefits, and define Medicare Part A and Medicare Part B noting what is needed to qualify.
After studying the materials in Chapter 2, answer the exam questions 22 to 36.
Chapter 3 Retirement Plans
At the start of Chapter 3, participants should identify the following topics for study:
* Qualified deferred compensation
* 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 able to:
1. Recognize nonqualified and qualified deferred compensation plans identifying their benefits and contributions limits and list the current and deferred advantages and disadvantages of corporate plans stating fiduciary responsibilities and prohibited transactions.
2. List the requirements of three basic forms of qualified pension plans enabling clients to compare and contrast such plans.
3. State the differences between defined contribution and defined benefit retirement plans and list the five types of defined contribution plans showing their impact on retirement benefits.
4. Identify self-employed plans from qualified plans for other business types and owners stating key choice of entity factors.
5. Outline the requirements of IRAs, SEPs, and SIMPLEs, and define tax-free Roth IRA distributions noting strategies to maximize plan benefits.
After studying the materials in Chapter 3, answer the exam questions 37 to 56.
Chapter 4 Distributions from Retirement Plans
At the start of Chapter 4, participants should identify the following topics for study:
* Prior law for annuity payments
* 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 able to:
1. Name two popular ways to receive distributions from a retirement plan or an IRA, list four types of annuities and their effect on how and when participants receive payments and state the tax on annuity payments using either the general rule or the simplified general rule.
2. Define lump-sum distributions permitting clients to receive special tax treatment on the distribution.
3. Outline key components of rollovers that can be used to reinvest cash or other assets without including the amount in income.
4. List the tax consequences of taking premature distributions and show 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.
After studying the materials in Chapter 4, answer the exam questions 57 to 68.
Chapter 5 Nonqualified Plans
At the start of Chapter 5, participants should identify the following topics for study:
* Postponement of income
* Purposes & benefits
* Constructive receipt
* Economic benefit
* Funded company account plan
* Segregated asset plan
* Tax consequences
* Estate planning considerations
* Withholding, Social Security & IRAs
After reading Chapter 5, participants will able to:
1. Recognize the postponement of income with a nonqualified plan by: