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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 324 ||| Word Count: 15,7716 ||| Review Questions: 200 ||| Final Exam Questions: 153 |
| CPE Credits : | 30.5 |
| IRS Credits : | 30 |
| Price : | $159.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 2379 |
| Description : | We are all (including tax practitioners) getting older, and the need for effective retirement planning has never been greater. This course is essential for participants who wish to attain a comfortable retirement for themselves and their clients by maximizing tax-saving strategies. This presentation integrates federal taxation with retirement planning. The course will examine tax and savings strategies related to determining retirement income needs, wealth building, capital preservation, and estate distribution. The result is a unified explanation of tax economics that will permit the tax professional to locate, analyze, and solve the financial aspects of retirement. Designed to improve the quality of services to clients and the profitability of engagements, this program projects the accountant into the world of retirement planning. This course will give the participant practice in analyzing problems, developing solutions, and presenting final personal retirement plans to clients. The emphasis is on practical simplicity in dealing with the self-employed and highly compensated individual. Retirement income needs are calculated; net after-tax Social Security benefits are determined, and distribution options from IRAs and retirement plans are explored. Special consideration is given to the tax treatment of the home and business on retirement. Buy-sell agreements are discussed and eldercare planning is examined. |
| Usage Rank : | 47500 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
What Is Retirement Planning? Steps, Stages, and What to Consider
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 08-Oct-2024 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2379 |
| Keywords : | Taxes, Ultimate, Guide, Retirement, Planning, from, Tax, Perspective, v14, cpe, cpa, online course |
| Learning Objectives : |
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 1 Financial Tax Planning At the start of Chapter 1, participants should identify the following topics for study:
* Investment purposes * Myths of retirement * Investment goals * Investment needs of five critical decades * Investment vehicles & entities * Retirement - the ultimate objective * Basic planning elements After reading Chapter 1, participants will be able to:
2. Determine the tax consequences of title holding methods by specifying ways to hold title to assets starting with the simplest and most direct ways to hold property. Chapter 2 Building an Estate At the start of Chapter 2, participants should identify the following topics for study:
* Information reporting on taxable income * Rules of budgeting * Cash * Acquisition * Assets * Rules of management * Managing risk * Taxes & investment economics * Leverage After reading Chapter 2, participants will be able to:
2. Determine how to convert income into assets by purchasing investments, specify tax-advantaged investments, and determine the economic impact of accelerating deductions and postponing tax liability. Chapter 3 Preservation of Wealth At the start of Chapter 3, participants should identify the following topics for study:
* Tracking spending * Building savings * Designing a budget * Determining worth * Analyzing net worth * Ignorance * Inflation * Taxes * Tax planning tactics After reading Chapter 3, participants will be able to:
2. Specify why individuals should take primary responsibility for investment planning including necessary self-education and determine basic income tax planning tactics. Chapter 4 Deferral At the start of Chapter 4, participants should identify the following topics for study:
* Related party exchanges * Personal & multiple property regulations * Delayed (deferred) exchange regulations * Actual & constructive receipt rule * Qualified contribution plans * Tax-deferred annuities * Installment sales * At-risk rule * Deferred compensation and options After reading Chapter 4, participants will be able to:
2. Identify retirement plan design and recognize popular methods for providing for retirement. 3. Specify the requirements for an installment sale, determine the variables affecting §453 availability, and recall how to use a property option to receive income and postpone tax. Chapter 5 Reduction At the start of Chapter 5, participants should identify the following topics for study:
* Low Income Housing Credit & Child & Dependent Care Credit * Estimated taxes * Interest * Automobile deductions * Business entertainment deductions * Depreciation & cost recovery * Net operating losses * Tax breaks for nonitemizers * Amended returns After reading Chapter 5, participants will be able to:
2. Identify business vehicle operating costs using (or switching between) the actual cost method or the standard mileage rate, recognize the application of R.R. 90-23 and R.R. 99-7 to the deduction of temporary work location costs, and recall the business entertainment expense statutory exceptions. 3. Determine MACRS business asset depreciation and identify sources of §172 net operating losses (NOLs) recognizing carryback and carryover rules. Chapter 6 Income Splitting At the start of Chapter 6, participants should identify the following topics for study:
* Deductible business expenses * Home-office deduction * C or regular corporations * S corporations * Family partnerships * Kiddie tax trap * Childcare & education * Gifts * Interest-free loans After reading Chapter 6, participants will be able to:
2. Determine the uses and tax characteristics of regular and S corporations, specify initial §351 formation and capitalization issues, and recognize the use of partnerships to split income among partners. 3. Identify the taxation of child income and the dangers of the “kittie tax” and recognize the use of educational bonds. Chapter 7 Elimination At the start of Chapter 7, participants should identify the following topics for study:
* Municipal bonds * Divorce & separation settlements * Gifts & inheritances * Life insurance * Fringe benefits * Taxation & valuation of benefits * Employee expense reimbursement & reporting * Fixed & variable rate allowances * Social Security After reading Chapter 7, participants will be able to:
2. Recognize employer deductions as a means to increase tax-free incentive-based compensation for employees by identifying excludible fringe benefits under §132 including employer paid accident & health coverage, determine how to value fringe benefits, specify the proper reporting of reimbursed and unreimbursed business expenses under accountable and nonaccountable plans. Chapter 8 Asset Protection At the start of Chapter 8, participants should identify the following topics for study:
* Types of creditors * Fraudulent transfers * Preparation for asset protection * Types of insurance * Buy-sell agreements * Individual ownership and corporate ownership * Asset protection aspects of trusts * Co-tenancy and partnerships * Divorce After reading Chapter 8, participants will be able to:
2. Recognize the importance of creditor types associated with asset protection and fraudulent transfers. 3. Determine the degree and necessity of asset protection using net worth and asset values on a balance sheet, identify the ways that insurance and buy-sell agreements can offer asset protection, and recognize the asset protection advantages and disadvantages of ownership formats and entities. 4. Identify what constitutes post-nuptial and premarital agreements stating how they relate to divorce settlements and divisions. Chapter 9 How Much Do You Need To Retire? At the start of Chapter 9, participants should identify the following topics for study:
* Common pitfalls * Popular retirement myths * Defining retirement * Developing a plan * Savings * Assets After reading Chapter 9, participants will be able to:
2. Determine retirement using the major levels of retirement and key questions that have financial and personal ramifications. 3. Identify retirement costs and income needs of clients based on their current budget, recognize tax savings strategies, and identify guidelines when purchasing investment assets. Chapter 10 Social Security Benefits & Retirement Planning At the start of Chapter 10, participants should identify the following topics for study:
* How Social Security works * Social Security participants * Social Security benefits * Retirement benefits * Direct deposit * Social security tax * Total disability benefits * Survivors’ benefits * Medicare After reading Chapter 10, participants will be able to:
2. Recognize Social Security taxes, their tax rates, and covered earnings allowing better retirement planning. 3. Specify the eligibility requirements of Social Security disability benefits and survivors’ benefits, and determine what constitutes Medicare Part A and Medicare Part B recognizing their qualifications. Chapter 11 Retirement Plans At the start of Chapter 10, participants should identify the following topics for study:
* Basic requirements of a qualified pension plan * Basic types of corporate plans * Types of defined contribution plans * Self-employed plans – Keogh * Distribution & settlement options of IRAs * Tax-free rollovers for IRAs * Roth IRAs * Simplified employee pension plans (SEPs) * SIMPLE plans After reading Chapter 11, participants will be able to:
2. Recall the variety of qualified plans, identify employee contributions, and recognize plan termination rules. 3 Differentiate self-employed plans from qualified plans for other business types, and identify the requirements of IRAs, SEPs, SIMPLEs, and tax-free Roth IRAs. Chapter 12 Distributions from Retirement Plans & IRAs At the start of Chapter 11, participants should identify the following topics for study:
* Mandatory basis rule for annuity payments * Nonqualifying lump-sum distributions * Treatment options for lump-sum distributions * Eligible rollover distributions * 20% withholding * Rollover period * Premature distributions * Minimum distribution rules * Making charitable gifts with plan balances After reading Chapter 12, participants will be able to:
2. Recognize the key components of rollovers that can be used to reinvest cash or other assets without including the amount in income. 3. Specify the tax consequences of taking premature distributions stating how to avoid the 10% penalty. 4. Identify the minimum distribution rules and recognize the ability of participants to make charitable contributions of retirement balances. Chapter 13 Nonqualified Plans At the start of Chapter 13, participants should identify the following topics for study:
* Purposes & benefits * Constructive receipt * Economic benefit * Funded company account plan * Segregated asset plan * Tax consequences * Accounting * Estate planning considerations * Withholding, Social Security & IRAs After reading Chapter 13, participants will be able to:
2. Determine the mechanics of unfunded and funded plans stating the use of company assets or bookkeeping accounts and specify the tax consequences of establishing a nonqualified plan. Chapter 14 Life Insurance, Annuities & Buy-sell Agreement At the start of Chapter 14, participants should identify the following topics for study:
* Types of life insurance * Life insurance trusts * Annuities * Buy-sell agreements * Purchase price & terms * Community property * Professional corporations * S corporations * Sole shareholder planning After reading Chapter 14, participants will be able to:
2. Identify the pros and cons of the various types of insurance policies, specify the reasons for using an irrevocable life insurance trust in an estate plan, and differentiate deferred and private annuities. 3. Determine what constitutes entity purchase and cross-purchase buy-sell agreements recognizing tax and legal advantages. Chapter 15 Home Sales & Moving Expenses At the start of Chapter 15, participants should identify the following topics for study:
* Rate groups * AMT * Home sales under §121 * Special rules for ownership & use requirements * Prorata exception * 1099-S reporting * Distance & time tests for pre-2018 moving expenses * Deductible pre-2018 moving expenses * Reporting pre-2018 moving expenses After reading Chapter 15, participants will be able to:
2. Recognize the key elements and application of the §121 home sale exclusion and identify safe harbor regulations associated with the home sale exclusion. 3. Identify the disallowance deductible moving expenses under §217. Chapter 16 Estate Planning Issues At the start of Chapter 16, participants should identify the following topics for study:
* Applicable exclusion amount * Stepped-up basis * Basic estate planning goals * Simple will * Types of trusts * Charitable trusts * Insurance trusts * Family documents * Private annuities After reading Chapter 16, participants will be able to:
2. Identify the relationship of simple wills to probate and why some plan to avoid it. 3. Specify various types of estate trusts and their use to accomplish planning goals, recognize the benefits and drawbacks of the primary dispositive plans, and determine the advantages and disadvantages of private annuities. |
| Course Contents : | Chapter 1 - Financial Tax Planning Comparing Goals & Purposes Investment Purposes Purpose #1 - Comfortable Retirement Myths of Retirement Plan For 10 to 15 Retirement Years Stay With One Company to Retire With the Best Benefits Preserve Capital Retirees Are Taxed Less Housing Costs Are Less Just the Spouse and Me Medicare Will Cover Medical Bills Retirees End Up In a Nursing Home Purpose #2 - Education Purpose #3 - Family & Personal Stability Purpose #4 - Enjoyment of Life Purpose #5 - Commitment Investment Goals Find Your Place in Time “Know Thy Investment Self” Investment Vehicles & Entities Individual Corporate Trusts Co-Tenancy Partnership Retirement Plan Custodianship Estate Retirement Now - The Ultimate Objective Defining Retirement When Do I Want To Retire? What Kind Of Lifestyle Do I Want? Do I Want To Move? Determining Retirement Costs & Income Needs Developing a Plan Savings - The 10% Rule Selected Strategies for Savings Basic Planning Elements Chapter 2 - Building an Estate Assets, Income & Cash Income Type #1 - Taxable Information Reporting on Taxable Income Payments Salary & Wages Interest Income Dividends Tax-refunds Gambling Winnings Other Income Known to the IRS Real Estate Transactions Type #2 - Tax-free Type #3 - Tax-Deferred Type #4 - Tax-sheltered Gifts Borrowed Money Gain on Home Sales IRA Rollovers Inheritances Life Insurance Proceeds Property Settlements Child Support Payments Money Recovered For Personal Injuries Workers Compensation Payments Disability Payments Tax Refunds Municipal Bond Interest Vacation Home Rental Children’s Wages Children’s Investment Income Scholarships - §117 Budgeting Rule #1: Expenses - 60% Rule #2: Taxes - 20% Rule #3: Savings - 10% Rule #4: Education - 10% Rule #5: Keep Your Benefits Cash Lifestyle Emergency Funds Savings as Deferred Investing How To Save Programmed Savings Tax Savings Joint vs. Separate Returns Purchase of Assets Acquisition Stay Liquid - Be Able To Get Your Money Back Grow - Make Money on Your Money Shelter - Get Tax Benefits Build - Don’t Spend Your Benefits Avoid Linking - Each Investment Must Stand On Its Own Analyze - Investigate the Investment Assets Management Rule #1 - Develop Cash Flow Rule #2 - Learn To Negotiate Rule #3 - Manage Risk Investment Loss Liability Poor Health Premature Death Rule #4 - Diversify Rule #5 - Monitor Assets Rule #6 - Use Systems Taxes & Investment Economics Deductions Now, Taxes Later, or Maybe Never Accelerate Deductions Taxes Charitable Contributions Medical Expenses Miscellaneous Expenses Business Expenses Leverage Chapter 3 - Preservation of Wealth Four Obstacles to Preservation Spending Habits Track Your Spending Income Expenditures Living Expenses Fixed Variable Credit Card Payments The Bottom Line Converting a Minus Into a Plus Build in Savings Adjustments Designing a Budget What Are You Worth? Inventory Assets Cash Personal Property Investments List Liabilities Analyze Net Worth Wasting Assets Liquidity Diversification Cash Reserve Ignorance Taking Control Planning Responsibility Delegation Asset Allocation - Risk & Return Inflation Taxes Tax Planning Tactics Chapter 4 - Deferral Section 1031 “Like-Kind” Exchanges Exchange Advantage Importance of Deferral Three Elements Exchange Requirement Two-Party Exchanges Multi-Party Exchanges Alderson Baird Delayed Exchanges Qualified Property Requirement Like-Kind Requirement Rules of Boot Related Party Exchanges Definition of Related Party Exceptions to the Two-Year Rule Contractual Protection Transactions Between A Partner & Partnership Foreign Real Property Exchanges Qualified §1031 Exchange of Personal Property Repealed Requirements for Personal Property - Prior to 2018 Like-Kind or Like-Class Like-Kind Personal Property - Identical Like Class Personal Property - General Asset or Product Class Five, Four, Then Six Digit Product Classes Other Personal Property Multiple Asset Exchanges Exchange Groups Aggregation & Allocation Delayed (Deferred) Exchange Regulations Deferred (Delayed) Exchange Definition Identification Requirements Identification & Exchange Periods Application of §7503 Method of Identification Property Description Incidental Property - 15% Rule Revocation Substantial Receipt Multiple Replacement Properties Actual & Constructive Receipt Rule Four Safe Harbors Safe Harbor #1 - Security Safe Harbor #2 - Escrow Accounts & Trusts Disqualified Person Who Is An Agent? Safe Harbor #3 - Qualified Intermediary Who Is A Qualified Intermediary? Direct Deeding Assignment Simultaneous Exchanges Safe Harbor #4 - Interest Interest Reporting - §468B(g) Restrictions On Rights to Money & Other Property - “g(6)” Limitations Outside Transfers of Money or Other Property Exchanges of Partnership Interests Effective Date of Partnership Provisions Retirement Plans Designing Your Retirement Sources of Retirement Income Qualified Corporate Programs Defined Contribution Plans Profit-Sharing Plan Money Purchase Pension Plan Stock Bonus Plan Employee Stock Ownership Plan 401(k) Plan Defined Benefit Defined Benefit Pension Annuity Plan SIMPLE Plans Self-Employed Plans Individual Retirement Accounts Penalty-Free Withdrawals Roth IRA - §408A Tax-Deferred Annuities Mechanics Types of Deferred Annuity Fixed Annuity Variable Annuity Minimum Investment & Charges Simplified Employee Pension (SEP) Plan Investment Assets Matching Income to Expenditures Participant Loan Regulations Additional Loan Requirements DOL Regulations Installment Sales Requirements Late Election Out of Installment Method Formula Mortgage in Excess of Basis Recapture Dealers At-Risk Rule Application Nonrecourse Financing Qualified Nonrecourse Financing Qualified Persons Deferred Compensation Options Chapter 5 - Reduction Tax Credits Work Opportunity Tax Credit (WOTC) – §51 Computation Welfare-to-Work & Work Opportunity Credits Merged Certification Trap Research Tax Credit - §41 Alternative Simplified Credit Relation to §174 - Repealed Rehabilitation Tax Credit - §47 Credit Rates Residential vs. Nonresidential External Wall Requirement Basis Reduction Low Income Housing Credit - §42 Amount of Expenditure Set Aside Requirement Qualifying Units Gross Rent Limitation - 30% Section 8 Assistance Exclusion Recapture of Credit 30-Year Rule State Credit Ceiling AGI Limitation Child & Dependent Care Credit - §21 Eligibility Employment Related Expenses Qualifying Out-of-the-home Expenses Payments to Relatives Allowable Amount Identification of Provider Estimated Taxes General Rule Annualized Method Cash-Saving Strategies Underpayment Cautions Tax Refund Trap Basic Deductions Interest Personal Interest – Repealed (Gone Long Ago) Investment Interest Prepaid Interest Points Huntsman Case Prepayment Penalty Interest on Real Estate Rental Property Home Owners Automobile Deductions Employee Automobile Deductions Business/Personal Proration Actual Cost Method Standard Mileage Rate Limitations on Standard Mileage Method Must Be an Individual Switching Methods Claiming Deductions Records Mileage Records Depreciation Traps Percentage Test Depreciation “Recapture” Depreciation Limits for Autos Leasing Restrictions Mileage Allowance for Leased Autos First-year Expensing - §179 Commuting - Local Business Transportation Regular/Irregular Rule - R.R. 90-23 Temporary Work Site Definition Reserve Units Reimbursements Temporary Work Outside Metropolitan Area - R. R. 99-7 Business Entertainment Prior to 2018 Former Directly Related Test Former Associated Test Statutory Exceptions - §274(e) Food and Beverages for Employees Expenses Treated as Compensation Reimbursed Expenses Recreational Expenses for Employees Employee, Stockholder, and Business Meetings Trade Association Meetings Items Available to the Public Entertainment Sold to Customers Expenses Includible in Income of Non-employees Depreciation & Cost Recovery - §167 & §168 Personal Property MACRS MACRS Elections Straight-line 150% Declining Balance Bonus (or Additional First-year) Depreciation - §168(k) Qualified Property - §168(k)(2) Nonqualified Property - §168(k)(2) MACRS Conventions Mid-quarter Convention Exception Election to Expense Assets - §179 Income Limitation Carryover Deduction Reduction Employee Restriction Recapture - §1245 Net Operating Losses - §172 Creation of an NOL Individual NOLs Carryovers Farming Corporate NOLs Further Limitations Tax Breaks for Nonitemizers Adjustments Credits Amended Returns Audit Avoidance Safest Amendments Not-So-Safe Amendments Chapter 6 - Income Splitting Using Progressive Tax Rates Splitting Income Among Group Members Wealth Allocation Major Formats Unincorporated Business Deductible Business Expenses Home-Office Deduction Requirements - §280A Non-Exclusive Use Exceptions Income Limitation Home Office Deduction Expansion Analysis Square Footage Safe Harbor - R.P. 2013-13 Retirement Plans Hiring Your Children Hiring Your Spouse Travel Expenses Casualty Losses Bad Debts Self-Employment Tax Incorporation “C” or Regular Corporation Planning Considerations When to Incorporate Formation Cash for Stock Property for Stock Stock for Services Stock for Debt Repeal of the “General Utilities” Doctrine Corporate Assets Leasing Lessor Gift & Leaseback Sale & Leaseback “S” Corporation Single Taxation S Corporation Return Planning Considerations Tax Advantages Formation Corporations That Qualify Income-Splitting Estimated Tax Payments Family Partnership Partner’s Distributive Share Partnership Return Schedule K-1 (Form 1065) Family Partnerships Family Members Capital Children as Partners Earned Income Gift of Capital Interest Custodianship & Children Taxation Kiddie Tax - §1(g) Income-Shifting Investments US Savings Bonds Municipal Bonds Growth Stock Real Estate Child Care & Education Nursery School & Day Care - §21 Special Schools Credit Plus Special School Expenses Employer Dependent Care Program - §129 Education Savings Bonds - §135 Notice 90-7 Interest on Education Loans - §221 Buying an Off-campus House Status as Second Home Status as Rental Property Gifting Gain for Education Expenses Gifts Gifts by Check Facts Holding Interest Free Loans De Minimis Exception Special Rule for Gift Loans Chapter 7 - Elimination $500,000 Home Sale Exclusion - §121 Two-Year Ownership & Use Requirements Tacking of Prior Holding Period Vacant Land Mixed Business & Residence Use Prorata Exception Safe Harbor Regulations Change in Place of Employment Health Unforeseen Circumstances Use of Old §1034 & §121 - Gone Long Ago Limitations on Exclusion Renting to Parents Parent’s Benefits Children’s Benefits Municipal Bonds Tax-Exempt Interest on Qualified State or Local Obligations Reporting Private Activity Bonds Divorce & Separation Settlements Pre-2019 Alimony Child Support Property Division Dependency Exemption Gifts & Inheritances Basis of Gift FMV Less Than Donor’s Adjusted Basis FMV More Than Donor’s Adjusted Basis Holding Period Income from Property Given to a Child Life Insurance Proceeds Not Received in Installments Proceeds Received in Installments Fringe Benefits Prizes & Awards - §74(b) Group Life Insurance Premiums - §79 Table I Accident and Health Plans - §106 & §105 Meals & Lodging - §119 Cafeteria Plans - §125 Educational Assistance Program - §127 Dependent Care Assistance - §129 Reporting Requirements for Dependent Care Programs Cash Reimbursement Plans In-kind Assistance Section 132 No Additional Cost Services - §132(a) & (b) Qualified Employee Discounts - §132(c) Services - §132(c)(1) Property - §132(c)(2) & (4) Working Condition Fringe Benefits - §132(d) De Minimis Fringe Benefits - §132(e) Spousal Insurance Transportation Fringe Benefits - §132(f) Moving Expense Reimbursements - §132(a)(6) Retirement Planning Services - §132(a)(7) On-premise Athletic Facilities - §132(j) Nondiscrimination Under §132 Taxation & Valuation of Benefits Valuation Provisions Leased Cars Purchased Cars Fleet-Average Rule Cents-Per-Mile Valuation Commuting Valuation Rule Chauffeur Services Eating Facilities Meal Subsidy Rule ERISA Compliance Welfare Plans Additional Requirements Employee Expense Reimbursement Unreimbursed Employee Expenses Reimbursed Employee Expenses Accountable Plans Business Connection - Rule #1 Reasonable Period of Time - Rule #2 Fixed Date Safe Harbor - #1 Period Statement Safe Harbor - #2 Adequate Accounting - Rule #3 Per Diem Allowance Arrangements Federal Per Diem Rate Related Employer Restriction Reporting Per Diem Allowances Reimbursement Not More Than Federal Rate Reimbursement More Than Federal Rate Nonaccountable Plans Fixed & Variable Rate (FAVR) Allowances - R.P. 90-34 Elements Periodic Fixed Payment Periodic Variable Payment Limitations Record keeping Social Security Taxation Earnings Record Payments Exempt from Social Security Social Security Checkup Form SSA-7004 Form SSA-7050 Chapter 8 - Asset Protection Why Asset Protection? Situations That Create Danger Sources of Lawsuits Types of Liability Basic Protection Concepts Types of Creditors Evading Creditors Fraudulent Transfers Badges of Fraud Statute of Limitations Criminal Penalties Permissible Asset Transfers Asset Protection Goals Preparation Insurance Homeowners Insurance Automobile Insurance Disability Insurance Life Insurance Life Insurance Trust Buy-Sell Agreements Definition Asset Protection Aspects of Common Entities Individual Ownership Sole Proprietorship Corporate C Corporation No Pass-Through The S Corporation - §1361 Trusts Types of Trusts Revocable Trust Land Trusts Irrevocable Trusts Testamentary Trust Business Trusts Foreign Trusts - §679 Asset Protection Trusts - APTs Foreign Jurisdictions Alternatives Income Taxation Estate & Gift Tax Creditor Protection Family Trusts Medicaid Trust Grantor Retained Income Trust Co-Tenancy Tenancy in Common Varying Percentages No Survivorship Joint Tenancy with Right of Survivorship Equal Percentages Tenants by the Entirety Right of Partition Partnership Family Partnerships Charging Orders Phantom Income to Creditor Tax Issues Estate Savings Income Tax Savings Limited Liability Company Retirement Plan Retirement Fund Protection in Bankruptcy Custodianship Estate Divorce Premarital Agreements Uniform Premarital Act - The California Example Permitted Items of Agreement Unenforceable Items Retirement Equity Act of 1984 Benefits of a Premarital Agreement Post-Nuptial Agreements Chapter 9 - How Much Do You Need To Retire? Mapping Mechanics Pitfalls & Myths Common Pitfalls Popular Retirement Myths Plan For 10 to 15 Retirement Years Stay With One Company to Retire With the Best Benefits Pension Benefits Are Guaranteed by the Government Preserve Capital Retirees Are Taxed Less Housing Costs Are Less Just the Spouse and Me Social Security Will Gap Any Savings or Pension Benefits Shortfall Medicare Will Cover Medical Bills Retirees End Up In a Nursing Home Defining Retirement When Do I Want To Retire? What Kind Of Lifestyle Do I Want? Do I Want To Move? Determining Retirement Costs & Income Needs Developing a Plan Savings Strategies for Savings Assets Stay Liquid - Be Able To Get Your Money Back Grow - Make Money on Your Money Shelter - Get Tax Benefits Build - Don’t Spend Your Benefits Avoid Linking - Each Investment Must Stand On Its Own Analyze - Investigate the Investment Chapter 10 - Social Security Benefits & Retirement Planning Will Social Security Be There? How Social Security Works Social Security Participants Social Security Benefits Retirement Benefits Qualification Calculation Average Indexed Monthly Earnings (AIME) Primary Insurance Amount (PIA) Cost of Living Adjustment Using Dollar Bend Points Adjustment for Retirement Date Early Retirement Effect of Late Retirement Earnings Reduction Formula Annual Report of Earnings Special Monthly Rule Personalized Benefit Estimate Impact of Private Pension Direct Deposit Social Security’s Payroll Tax or FICA Rates Covered Earnings Multiple Employers Covered Employment Self-Employment Tax after Retirement Social Security as a Retirement Planning Element Total Disability Benefits Family Members HIV & AIDS Children Qualification Survivors Benefits Divorce Medicare Who Is Eligible For Hospital Insurance (Part A)? Who Can Get Medical Insurance (Part B)? Prescription Drug Coverage (Part D) How Do You Get Medicare? What Does Medicare Pay For? What Medicare Does Not Pay For? Medigap Insurance Chapter 11 - Retirement Plans Deferred Compensation Qualified Deferred Compensation Qualified v. Nonqualified Plans Major Benefit Current Deduction Timing of Deductions Part of Total Compensation Compensation Base Salary Reduction Amounts Benefit Planning Corporate Plans Advantages Current Deferred Disadvantages Employee Costs Comparison with IRAs & Keoghs Basic ERISA Provisions ERISA Reporting Requirements Fiduciary Responsibilities Bonding Requirement Prohibited Transactions Additional Restrictions Fiduciary Exceptions Loans Employer Securities Excise Penalty Tax PBGC Insurance Sixty-Month Requirement Recovery Against Employer Termination Proceedings Plans Exempt from PBGC Coverage Basic Requirements of a Qualified Pension Plan Written Plan Communication Trust Requirements Permanency Exclusive Benefit of Employees Highly Compensated Employees Reversion of Trust Assets to Employer Participation & Coverage Age & Service Coverage Percentage Test Ratio Test Average Benefits Test Numerical Coverage Related Employers Vesting Full & Immediate Vesting Minimum Vesting Unified Vesting Nondiscrimination Compliance Contribution & Benefit Limits Defined Benefit Plans (Annual Benefits Limitation) - §415 Defined Contribution Plans (Annual Addition Limitation) - §415 Limits on Deductible Contributions - §404 Assignment & Alienation Miscellaneous Requirements Basic Types of Corporate Plans Defined Benefit Mechanics Defined Benefit Pension Defined Contribution Mechanics Discretion Favorable Circumstances Types of Defined Contribution Plans Profit-Sharing Requirements for a Qualified Profit-Sharing Plan Written Plan Eligibility Deductible Contribution Limit Substantial & Recurrent Rule Money Purchase Pension Cafeteria Compensation Plan Thrift Plan Section 401(k) Plans Death Benefits Defined Benefit Plans Money Purchase Pension & Target Benefit Plans Employee Contributions Non-Deductible Life Insurance in the Qualified Plan Return Universal Life Compare Plan Terminations & Corporate Liquidations 10-Year Rule Lump-Sum Distributions Asset Dispositions IRA Limitations Self-Employed Plans - Keogh Mechanics Contribution Timing Controlled Business General Limitations Effect of Incorporation Mechanics Parity with Corporate Plans Types of Keogh Plans Figuring Retirement Plan Deductions For Self-Employed Self-Employed Rate Determining the Deduction Individual Plans - IRAs Deemed IRA Mechanics - §219(b) Phase-out - §219(g)(2) Special Spousal Participation Rule - §408A(c)(3) Spousal IRA Eligibility Contributions & Deductions Employer Contributions Retirement Vehicles Distribution & Settlement Options Life Annuity Exemption Minimum Distributions Required Minimum Distribution Definitions Required Minimum Distributions During Owner’s Lifetime Sole Beneficiary Spouse Who Is More Than 10 Years Younger Required Minimum Distributions in Year of the Owner's Death Beneficiaries - Distributions after the Owner’s Death Estate Tax Deduction Charitable Distributions from an IRA Post-Retirement Tax Treatment of IRA Distributions Income In Respect of a Decedent Estate Tax Consequences Losses on IRA Investments Prohibited Transactions Effect of Disqualification Penalties Borrowing on an Annuity Contract Tax-Free Rollovers Rollover from One IRA to Another Waiting Period Between Rollovers Partial Rollovers Rollovers from Traditional IRAs into Qualified Plans Rollovers of Distributions from Employer Plans Withholding Requirement Waiting Period Between Rollovers Conduit IRAs Keogh Rollovers Direct Rollovers From Retirement Plans to Roth IRAs Rollovers of §457 Plans into Traditional IRAs Rollovers of Traditional IRAs into §457 Plans Rollovers of Traditional IRAs into §403(B) Plans Rollovers from SIMPLE IRAs Roth IRA - §408A Eligibility Contribution Limitation Roth IRAs Only Roth IRAs & Traditional IRAs Conversions Recharacterizations Reconversions Taxation of Distributions No Required Minimum Distributions Simplified Employee Pension Plans (SEPs) Contribution Limits & Taxation SIMPLE Plans SIMPLE IRA Plan Employee Limit Other Qualified Plan Set up Contribution Limits Salary Reduction Contributions Employer Matching Contributions Deduction of Contributions Distributions SIMPLE §401(k) Plan Chapter 12 - Distributions from Retirement Plans Annuity Payments - §72 General Rule - Prior Law Exclusion Ratio Investment in Contract (Cost) Expected Return Simplified Alternative Rule - Prior Law Mandatory Basis Rule - Current Law Annuity Benefits Paid Over Two Lives Withholding & Estimated Tax Lump-Sum Distributions Qualified Distributions Nonqualified Distributions Treatment Options for LSDs 10-Year Averaging Employer Securities - Net Unrealized Appreciation (NUA) Capital Gain Treatment “Grandfather” or Transition Rules Rollovers Eligible Rollover Distributions 20% Withholding Exceptions Direct Rollover Rollover Period Annual Usage Rollover of Noncash Distributions Qualified Domestic Relations Order Rollover Surviving Spouse Rollover Premature Distributions - 10% Penalty Exemptions Death Disability Equal Periodic Payments Total Value & Aggregation Requirement Five-Year Requirement Medical Expenses Qualified Domestic Relations Order Recapture Tax Minimum Distribution Rules Required Beginning Date for Minimum Distributions Minimum Distribution Rules Making Charitable Gifts with Plan Balances Chapter 13 - Nonqualified Plans Postponement of Income Advantages IRS Scrutiny & Approval Nondiscrimination ERISA Funding No Immediate Cash Outlay Annual Report Notice Requirement Purposes & Benefits Benefit Formula Incentive Deferred Bonuses Contractual Arrangement Necessary Provisions Tax Status Service’s Position Rationale Congressional Moratorium No Ruling or Regulation Policy Constructive Receipt Beyond Actual Receipt Simple Set-Asides Are Not Possible Revenue Ruling 60-31 Regulations Time & Control Concept Control Timing After-the-Fact Contract Amendment to Existing Contract Economic Benefit Has Something of Value Been Transferred? Insurance Coverage Has a Calculable Value Segregated Funds Have Immediate Economic Value Value v. Control Revenue Ruling 60-31 Situation 1 Situation 2 Situation 3 Situation 4 Situation 5 General Principles Unfunded Bare Contractual Promise Plan - Type I Risk Funded Company Account Plan - Type II Ownership & Segregation Bookkeeping Reserve or Separate Account Employee Still Bears Economic Risk Limited Protection Investment of Deferred Amounts Life Insurance Premiums Third Party Guarantees Segregated Asset Plan - Type III Section 83 Approach Tight Rope Format Transferable or Not Subject To A Risk of Substantial Forfeiture Substantial Restrictions Redemption or Forfeiture Condition Related to a Purpose of the Transfer Noncompetition Consultation Time Alone is Not Enough Realization & Taxation 30-Day Election Period Deduction Allowed Timing Withholding Tax Consequences Reciprocal Taxation/Deduction Rule No Difference for Cash or Accrual Separate Accounts for Two or More Participants Employer Deduction Traps Income Tax on Employer-Held Assets Inclusion in Income Under §409A State Tax Issues Accounting Two Sets of Rules Financial Accounting Rules IRS Rules Estate Planning Considerations Death During Deferral Income Tax Consequences Estate Tax Consequences Gift Tax Consequences Withholding, Social Security & IRAs Other Payroll Taxes Social Security Benefits IRAs Chapter 14 - Life Insurance, Annuities & Buy-Sell Agreements Purpose Tax Overview Income Tax Transfer-for-Value Rule Employee Death Benefit - §101(b) (Repealed) Premiums Lifetime Benefits Section 72 Estate Taxes - §2042 & §2035(a) Ownership Gift Taxes Community Property Gift Danger Types of Life Insurance Term Insurance Whole Life (Permanent) Insurance Straight Life v. Limited Payment Modified v. Preferred Endowment Insurance Universal Life Charges Premium Payment Variable Life Investment Accounts Taxation Survivor Life Single Premium Whole Life Dividends Life Insurance Trust Considerations Annuities Deferred Annuity Private Annuity Unsecured Promise Regulations Restrict Private Annuity Income Buy-Sell Agreements Definition Contractual Format Funding Life Insurance Funding Term vs. Whole Life Policy Ownership & Premium Payment Entity & Cross-Purchase Agreements Tax Consequences - Cross-Purchase Agreements Non-Deductible Premiums No Dividend Danger Tax Consequences - Entity Purchase Agreements Non-Deductible Premiums Dividend Danger - §302 Exception to Dividend Treatment Constructive Ownership (Attribution) Rules “Estate/Beneficiary” Rule “Family/Trust/Corporation” Rule No Gain on Sale Estate Tax Valuation Using the Buy-Sell Agreement to Set Value Enforcement of Contract Price Purchase Price & Terms Valuation Community Property Professional Corporations Marketability Problems Controlled Disposition S Corporations Sole Shareholder Planning Complete Liquidations Alternative Dispositions Use of Life Insurance Estate Valuation One-Way Buy-Outs Chapter 15 - Home Sales & Moving Expenses Introduction Capital Gains & Qualified Dividends Rates - §1 28% Rate Group 25% Rate Group - Unrecaptured §1250 Gain 15% (or sometimes 20%) Rate Group - Adjusted Net Capital Gain The Hidden Rate - Net Investment Income Tax - §1411 AMT Small Business Stock Netting Capital Gains & Losses Analysis Home Sales - §121 Exclusion Amount Analysis Reduced Home Sale Exclusion for Nonqualified Use Computation Nonqualified Use Post-May 6, 1997 Depreciation Surviving Spouse Home Sale Exclusion Home Sale Exclusion for Decedent’s Estate Ownership & Use Requirements Special Rules Occasional Absences Tacking of Prior Holding Period Rental of Personal Residence Depreciation Vacant Land Mixed Personal & Business Use of Home Depreciation after May 6, 1997 Divorce Prorata Exception Prorata Clarification Safe Harbor Regulations Change in Place of Employment Health Unforeseen Circumstances Two-Year Requirement Remainder Interests 1099-S Reporting Revenue Procedure 98-20 Moving Expenses - §217 Distance Test Time Test Time Test for Employees Time Test for Self-employment Deductible Expenses Travel Expenses Travel by Car Location of Move Reporting Reimbursements Chapter 16 - Estate Planning Unlimited Marital Deduction Outright To Spouse Marital Deduction Trust - §2056 Qualified Terminable Interest Property (QTIP) Trust Applicable Exclusion Amount Spousal Portability of Unused Exemption Amount - §2010(c)(2) Stepped-up Basis - §1014 Basic Estate Planning Goals Primary Dispositive Plans Simple Will Danger for Larger Estates Probate Transfers within Probate Disposition of Property without a Will Transfers outside Probate Assets Not Subject to a Will Assets Subject to a Will Trusts Types of Trusts Living Trusts Testamentary Trusts Revocable & Irrevocable Living “A-B” Revocable Trust Living “A-B-C” (QTIP) Trust Impact of Spousal Portability on Trust B under TUIRJCA Charitable Trusts Charitable Remainder Trusts Charitable Income Trusts Insurance Trusts Family Documents Living Will Property Agreement & Inventory Durable Power Of Attorney Power of Attorney for Health Care Conservatorship Funeral Arrangements Anatomical Gifts Private Annuity? Advantages to the Transferor Disadvantages to the Transferor Advantages to the Transferee Disadvantages to the Transferee Regulations Restrict Private Annuity Income Glossary |
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The Charitable Payraise- A Strategy for Better Retirements and Lasting Legacies (Video) (1 Hrs)