IRAs: What You Need to Know about Contributions, Conversions and Distributions (Currently Unavailable)

Author: Greg White

This course covers the essentials of IRA’s. We’ll go well beyond the basics to cover crucial topics: when to convert traditional IRA’s to Roth IRA’s, how to minimize tax on conversion, and when clients should recharacterize IRA contributions (and how to recharacterize). We’ll also discuss how to get a waiver for clients who fail to take a required minimum distributions and other traps in the IRA area including prohibited transactions, excess contributions, and impermissible investments.

Publication Date: July 2021

Topics Covered

• Reasons for IRA Rules
• Types of IRAs
• Nondeductible IRAs Missed Opportunities
• Nondeductible Contributions Pick Spouse w/Better ND Ratio
• Same Tax Bracket at Retirement Tie Goes → Roth
• Traditional IRAs
• Predicting Tax Rate at Retirement
• Fixing Mistakes
• Recharacterizations
• Return of Contributions
• Conversions
• Recap
• Pro Rata Taxation
• Medicare Surcharge
• Moderation: Reasons NOT to Convert Entire Traditional IRA → Roth
• What If Beneficiaries Have Different Tax Brackets?
• Recap Moderation
• Penalties and Additional Tax

Learning Objectives

• Identify clients who should convert traditional IRA's to Roth IRA's
• Identify clients who should recharacterize IRA contributions and how to recharacterize
• Recognize how to prepare waiver statements for clients who fail to take the required minimum distribution.
• Identify the maximum Traditional IRA deduction limit per year phase-out is based on
• Identify the annual IRA contribution limit for individuals less than or older than 50 years of age
• Recognize a qualified Roth distribution
• Describe the first question to consider with respect to conversions
• Identify the annual RMD for a Roth IRA while the owner is still living and older than 72

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None