TIPA
TAX ISSUES AND PLANNING FOR POST-RETIREMENT DISTRIBUTIONS
FROM QUALIFIED PLANS AND IRAS
The purpose of this course is to focus on the annuity options that are required by law, the requirements for selecting any of various alternative types of annuities, and the characteristics, pros and cons of the various alternatives as well as the tax rules associated with annuities from both qualified plans and IRAs. This course also addresses nonperiodic payments. Nonperiodic distributions from qualified plans and IRAs, which are also called “amounts not received as an annuity,” include withdrawals of irregular amounts at irregular times, lump-sum distributions, and installment payouts computed in conformance with the minimum-distribution rules. How much of a nonperiodic payment is subject to tax and in what manner depends on when it is made in relation to the annuity starting date, the type of contract, or the transaction from which it results.
Major topics include:
- Learning the vocabulary and terms of art associated with annuities;
- Mastering the required spousal benefit rules, including knowing to which retirement plans the rules apply, the QPSA rules, the QJSA rules, and the method for acquiring spousal consent for alternative payout options or beneficiary elections;
- Becoming completely familiar with annuity basics, including the features or characteristics and the pros and cons of various annuity options as well as when each type of annuity might be most suitably used;
- Understanding taxation basics for annuity benefits and the distinct cost-basis recovery rules for annuities from qualified plans and from IRAs;
- Identifying the various types of taxable distributions and transfers; and
- Understanding and properly applying the appropriate tax rules for nonperiodic payments, lump-sum-distributions, including the lump-sum income-tax-averaging rules, capital-gains tax-treatment rules, and the tax rules for the net unrealized appreciation on employer securities.
CPE Credit: 2 hours, Taxes
Level of Knowledge: Intermediate
Prerequisites: None
|
