Retirement Distributions: Case Studies

Author: Steven G. Siegel

Learn to spot the potential pitfalls and provide solid advice to unwary clients needing retirement plan distribution help
Clients may expend substantial effort and sacrifice to maximize their retirement plan contributions, and typically feel that they can deal with their plan balances at will. That is not the case. Distributions from retirement plans are subject to a series of complex requirements and decisions as well as income and estate tax obligations that can lead to substantial tax liabilities and penalties if not carefully addressed. Timing of plan withdrawals and distributions, careful identification of beneficiaries, and following rules that favor form over substance are all important to understand. There is legislation in Congress likely to pass this year that will change some of these rules dramatically.

This two-hour CPE program will address a number of real-world client situations and problems, and suggest what recommendations the clients’ advisors can address to solve them.

Publication Date: April 2021

Topics Covered

• Introduction: Retirement Planning Needed
• Baby Boomers ” Problems and Opportunity
• Client Checkup — Beneficiary Designation
• Retirement Plan Distributions Planning
• Required Minimum Distributions
• THE SECURE ACT — A Retirement Planning Game”Changer
• Death with No Designated Beneficiary
• Eligible Designated Beneficiaries (EDBs)
• Surviving Spouse as Beneficiary Is an EDB
• Spousal Rollovers
• Minor Child of Participant as Beneficiary Is an EDB
• The New 10 Year Rule
• Using Trusts in Distribution Planning
• More Changes from the Cares Act
• The Client Needs Money from the Plan Now — What Can Be Done?
• Inherited IRAs
• Trusts as Plan Beneficiaries
• The Estate as the Beneficiary
• Naming a Charity as a Beneficiary
• Address Miscellaneous Important Issues

Learning Objectives

• Recognize the key tax and non-tax issues involved in retirement plan distributions
• Identify potential planning options for common client situations
• Identify planning opportunities for clients to help them achieve their objectives and comply with legal requirements
• Describe minimum distributions
• Describe the common mistakes made with respect to required minimum distributions
• Identify the number of Eligible Designated Beneficiary categories
• Identify the required minimum distribution age for IRAs and qualified plans
• Recognize up to what amount you can donate to a public charity for a Qualified Charitable Distribution

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None