Individual Retirement Accounts

Individual Retirement Accounts examines the rules governing traditional and Roth IRAs, Education IRAs (now called Coverdell Education Savings Accounts), simplified employee pensions and SIMPLEs.  With respect to traditional IRAs, the course considers the issues of eligibility, contribution limits and investment vehicles.  Tax treatment of traditional IRA funds is discussed, including the treatment of contributions, accumulations, transfers and distributions.  The premature distribution penalties and its exceptions are addressed.  Roth IRAs, created by TRA’97, are discussed, including eligibility, contribution limits and distributions.  Conversions from traditional to Roth IRAs are examined and the tax consequences discussed.  The increased limits authorized by the Economic Growth and Tax Relief Reconciliation Act of 2001 are addressed and the Age 50+ catch-up provisions are explained.  At the conclusion of this course, the student can be expected to understand:

  • Traditional and Roth IRA rules with respect to eligibility and contributions
  • The benefits of tax-deferred accumulation
  • The rules governing traditional IRA distributions, rollovers, transfers and conversions to Roth IRAs
  • The tax rules governing traditional and Roth IRA contributions and withdrawals
  • The rules applicable to Coverdell Education Savings Accounts
  • The contribution and distribution rules governing SEPs and SIMPLE IRAs

Individual Retirement Accounts has eight learning objectives that are reinforced by the examination.

  1. To be able to discuss the rules governing eligibility and permitted contribution levels for traditional and Roth IRAs
  2. To be able to explain the tax treatment of contributions to and distributions from traditional and Roth IRAs
  3. To be able to demonstrate the benefits of tax-deferred accumulation
  4. To understand the rules concerning permitted IRA investments
  5. To be able to discuss traditional and Roth IRA distribution rules
  6. To understand Education IRA contribution and distribution rules and their tax implications
  7. To be able to discuss the contribution and distribution rules that apply to SEP IRAs
  8. To understand the contribution and distribution rules that apply to SIMPLE IRAs

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