Tax Treatment of Retirement Plans, Pensions, and Annuities (Currently Unavailable)

Author: Paul J. Winn

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law for CTEC
2 hours Federal Tax Related for EAs and OTRPs

Retirement Plans, Pensions and Annuities discusses the federal income tax treatment of, and limitations related to a) qualified employee plan contributions and distributions, and b) commercial annuity contracts. It examines the qualified plan limits and income taxability of: employer and employee contributions (including designated Roth account contributions); plan loans; life insurance contained in the plan; plan distributions, including distributions as periodic payments and non-periodic payments; required minimum distributions; and rollovers. The course also examines the tax treatment of lump-sum distributions and periodic payments received under commercial annuity contracts.

Publication Date: October 2018

Designed For
Tax practitioners; including Enrolled Agents and Registered Tax Return Preparers.

Topics Covered

  • Principal qualified employee plan types
  • Limits applicable
  • Tax treatment of qualified plan contributions and distributions
  • Annuity taxation
  • Defined Contribution Plan Characteristics
  • Target Benefit Plans
  • Profit Sharing Plans
  • 401(k) Plans
  • Tax Sheltered Annuity 403(b) Plan
  • Simplified Employee Pension (SEP)
  • SIMPLE Plans & Contributions
  • Employer Retirement Plan Contributions
  • Taxation of Qualified Plan Distributions
  • Cost Basis
  • Lump‐Sum Distributions
  • Periodic Payment Distributions
  • Partly Taxable Periodic Payments
  • Calculating Tax‐Free Portion- Simplified Method
  • Early Distributions
  • Required Minimum Distributions
  • Non‐Cash Distribution
  • Rollovers
  • Plan Loans
  • Death Benefit Taxation
  • Roth Account Distributions
  • Annuities
  • Annuity Tax Treatment
  • Annuity Surrenders, Withdrawals & Loans
  • Premature Annuity Distributions
  • Annuity Payments During Lifetime
  • Death After Annuity Starting Date

Learning Objectives

  • Distinguish between the types of qualified employee plans
  • Recognize the limits imposed on qualified employee plan contributions and benefits
  • List the requirements applicable to qualified employee plan loans
  • Identify and apply the federal tax laws to qualified employee plan contributions and distributions
  • Recognize the tax treatment of nonqualified annuity distributions
  • Identify the tax treatment of annuity contributions and distributions
  • Identify the primary determinant of a plan contribution
  • Describe an actuarial calculation for a target benefit plan generally performed
  • Recognize the maximum amount which can be contributed to a plan in 2018 as an elective deferral
  • Identify how much of each monthly periodic payment is tax-free as a recovery of cost basis
  • Recognize the indirect rollover, for the tax penalty, would be liable if no exception to the penalty applies
  • Identify the maximum number of employees an employer may have and remain eligible to offer a defined benefit/401(k) hybrid plan under current law
  • Differentiate which plans must a sponsoring employer have 100 or fewer employees in order to be eligible
  • Recognize the amount of elective deferral is made on a before-tax basis
  • Identify the tax penalty applied to a premature distribution from a qualified plan if the participant is required to include $10,000 of the distribution in income and no exception applies
  • Describe the amount of a$50,000 annual periodic payments is tax free if elected to receive periodic payments over a ten-year period
  • Recognize the maximum period over which a client may repay a loan in order to avoid it being considered a taxable distribution


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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