- NY Credits : 7.0
- TX Credits : 7.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 7.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax - 7.0
Sooner or later, taxpayers distribute funds from their IRA. In some cases, it is mandatory and in others it is voluntary. Upon reaching the age of 70-1/2, the taxpayer is faced with the challenge of making a distribution from his traditional IRA (or IRAs) as well as from each qualified retirement plan. Today, trustees of each plan have the responsibility to provide the required minimum distribution amount to the taxpayer at the start of the tax year. The accountant, on the other hand, is responsible for verifying the calculation for the client and more importantly, to estimate the annual required minimum distribution calculations for the upcoming years so the client has an idea of his financial position. This course gives the reader the tools to understand the various rules for making such a calculation from an IRA as well as a qualified plan. In the case of a voluntary distribution, it may be qualified or nonqualified. A nonqualified distribution opens up the early distribution excise tax. If a taxpayer can satisfy one of the many exceptions discussed in this course, the taxpayer is able to avoid the excise tax. Good complements to this course are the Checkpoint Learning courses IRAs - Contributions and Retirement Income Taxation. These courses provide a complete discussion of the rules for contributing to, transferring between, and distributing from the qualified plans.
This advanced level course focuses on the development and expansion of in-depth knowledge, skill and application of IRAs. This course is most appropriate for the professional with mastery of this topic or the professional seeking to expand his or her knowledge base and who may be a seasoned professional within an organization. This course also may be appropriate for other professionals with specialized knowledge in this topic. This course has been updated to include the relevant tax provisions of the Tax Cuts and Jobs Act of 2017.
Upon successful completion of this course, the user should be able to:
describe required minimum distributions calculations for traditional IRAs,
explain 10% early distribution excise tax as well as its many exceptions, and
calculate taxation of distributions from Roth IRAs.