IRAs: What You Need to Know About Contributions, Conversions and Distributions

Author: Greg White

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

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: June 2022

Topics Covered

• Reasons for IRA Rules
• Types of IRAs
• Choosing Traditional or Roth
• Nondeductible IRAs: Missed Opportunities
• Nondeductible Contributions: Pick Spouse w/Better ND Ratio
• Same Tax Bracket at Retirement Tie Goes â†' Roth
• Traditional IRAs
• Predicting Tax Rate at Retirement
• Fixing Mistakes
• Recharacterizations
• Return of Contributions
• Recharacterizations and Withdrawals
• Conversions
• Conversions: First Question-Can You Pay Tax with Outside Assets?
• Conversion Strategy: "Fill'er Up
• Moderation: Reasons NOT to Convert Entire Traditional IRA â†' Roth
• What If Beneficiaries Have Different Tax Brackets?
• Penalties and Additional Taxes
• Required Minimum Distributions

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 annual IRA contribution limit for individuals 50 or older
• Recognize which IRS Form a Nondeductible IRA contributions is required to be reported on
• Identify the amount Qualified Charitable Distributions are limited to per year
• Recognize when distribution dates fall in various client scenarios

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None