IRAs and Roth IRAs - Cradle to Grave How to Sock It Away and Make It Count
Authored by Bradley Burnett
About this Course
Topics covered include: IRAs and Roth IRAs set up, operation, contributions, withdrawals and estate planning; How did the Tax Cuts and Jobs Act affect IRAs (because it did)?; §401 (qualification), §408 (no collectibles), §4975 (no life insurance), §4975 (prohibited transactions), §512 (UBIT), §513 (unrelated trade or business), §514 (unrelated debt-financed income) and more; Self directed features for Traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, Individual 401(k)s and HSAs; Avoiding befuddling pitfalls: Sale or lease to IRA; receiving management fee; borrowing; using IRA as security (hot one); transfers to disqualified person(s); extending credit (crazy dangerous); providing immediate financial gain to account holder or related person (what does that mean?); Which can be put in or must be left out? Limited partnerships; venture capital; private stock; business startups (ever hear of a ROBS transaction?); LLCs; privately held enterprises; real estate (residential; rentals; undeveloped land; foreclosures; commercial; rehabs; lease options; loans (mortgage loans; promissory notes; deeds of trust; business loans); precious metals (gold; silver; platinum; palladium); brokerage accounts; oil and gas; crops; timber; blockchain (bitcoin); Asset protection benefits and avoiding prohibited transactions; What is the financial institution (e.g., Merrill Lynch) packet of forms debacle and how can it be avoided?; Financial freedom or flailing faux pas? Which is your fate?.
Upon completing this course, you should be able to: Recognize the federal tax rules, planning opportunities, compliance obligations and pitfalls of IRAs and Roth IRAs, with additional emphasis on self directed accounts; Describe how self-directed IRAs can be used in retirement planning; Describe what an owner of an inherited IRA may or may not do; Identify whats prohibited in an IRA agreement; Differentiate circumstances when an IRA participant would be allowed to make an annual contribution; Identify what is required to make a contribution a currently allowed or "timely" contribution; Describe active participation rules and how they apply; Recognize how nondeductible contributions are designated and reported; Differentiate the requirements to be reported on Form 8606; Describe what way an IRA owner has an excess contribution; Identify how an IRA generates unrelated business tax income (UBTI); Recognize the consequence of a trustee-to-trustee transfer; Describe a failed rollover; Identify reasons a taxpayer may be required to file Form 1099-R; Describe characteristics of Roth IRA distributions; Differentiate between a Roth 401 (k) and a Roth IRA; Recognize how distributions will be drawn; Identify how principal of an estate generally treated for federal income tax purposes; Describe what occurs when an IRA owner chooses to transfer up to $100,000 annually to charity; Identify the definition of a qualified person; Recognize tax consequences of a prohibited transaction of an IRA; Differentiate what is wholly exempt from a creditors' reach in federal bankruptcy; Differentiate which type of IRA applies to various types of clients; Recognize when various types of clients can begin making contributions to an IRA; Identify characteristics for IRA contributions; Recognize the key focus in determining active participant status under a defined benefit plan; Differentiate requirements that must be met for an IRA owner to self-correct excess contributions; Describe unrelated business tax income (UBTI); Identify what "cost" means when an IRA purchases a collectible; Recognize acceptable transactions of an IRA; Identify Federal Income Tax Withholding (FITW); Describe methods which would trigger current income taxation; Describe a backdoor IRA; Differentiate types of IRA funds; Identify examples of consequence of an equal interest pecuniary bequest.
Basic understanding of federal income taxation concepts and tax-advantaged retirement savings plans.