Section 1: Roth Conversion Strategies (30 minutes)- Keebler
- Critical Roth conversion concepts after SECURE
- Roth conversions for rate arbitrage compared to traditional IRAs to trusts
- 10+ Reasons to convert to a Roth IRA
- “Stretch” Roth IRAs for eligible designated beneficiaries
Section 2: Insurance Strategies for IRAs (30 minutes)- Keebler
- Powerhouse Life Insurance Strategies
- Understand the Income and Estate Tax-Free Benefits of IRA relocation (i.e., utilizing IRA distributions to Purchase Life Insurance)
- Learn Advanced Insurance Strategies Including Policy Designs to Maximize ROI
- Debt financed life insurance strategies
Section 3: Types of Trust Beneficiaries for IRAs (20 minutes)-Gasman
- Conduit Trust vs. Accumulation Trust
- Comparing Characteristics of an IRA CRUT and an Accumulation Trust
- Tiers of Beneficiaries- Which Beneficiaries’ Count for RMD Purposes?
- Special trust provisions for spouse beneficiaries
- Special trust provisions for minor children of the IRA owner
Section 4: Estate Tax Planning for IRAs (20 minutes)-Gasman
- The Effects on See-Through Trusts
- The Stretch CRUT
- 10 Year Rule vs. Charitable Remainder Trust
- Planning for Ownership and Inheritance of Pension and IRA Accounts
Summary
When moving IRS and employee plan accounts, the goal is usually to retain tax-deferred status. But one wrong move, one simple mistake, can produce the opposite result—immediate taxability! This course covers the rules that apply to Rollovers and Roth conversions and how to execute these transactions in accordance with the tax code, regulations, and IRS rules.
Course Outline
Introduction (10 minutes)
A brief overview of the importance of using the proper method to move IRA and employer plan accounts.
Section 1: Understanding The difference between transfers and rollover and the limitations that apply (25 minutes)
- An explanation of transfer vs rollover
- The types of accounts between which transfers may occur.
- An explanation of how to execute a transfer
- The types of accounts between which rollovers may occur
Section 2: The Rules and Best Practices for Executing Rollovers. (30 minutes)
- The 60-day limitation.
- Available solution for rollovers that miss the 60-day deadline
- The one-per-year limitation for IRA rollovers
- The nuances between direct and indirect rollovers
- Available corrective solutions for failed rollovers and strategies to avoid common pitfalls that could lead to unintended tax consequences.
Section 3: Roth IRA Conversions and Tax Considerations (25 minutes)
- Operational considerations for the conversion of traditional IRAs to Roth IRAs
- Operational considerations for converting traditional 401(k)s to Roth IRAs.
- The importance of performing a suitability of Roth conversions for different client profiles
Section 4: Rollover Rules Beneficiaries (20 minutes)
- An explanation of transfer and rollover rules that apply to inherited IRAs
- An explanation of transfer and rollover rules that apply to inherited employer plans
- The unique options that apply to spouse beneficiaries.
Conclusion and Wrap-Up (10 minutes)
Interactive Q&A (30 minutes)
Summary
Generally, distributions for IRA owners and plan participants' employer plans are optional until the account owner or plan participant reaches their applicable age to start the required minimum distribution (RMDs). Distributions made early can be subject to a 10% additional tax, but exceptions apply. RMDs are subject to an excise tax unless taken by the deadline. This course will demonstrate how advisors can work with clients who avoid these excise taxes.
Course Outline
Introduction (10 minutes)
A brief introduction to the fundamental concepts: Early Distributions, RMDs, Excise Taxes, and Penalties
Section 1: Understanding Early Distributions and the 10% Penalty (20 minutes)
- Overview of Early Distributions from Retirement Accounts
- Understanding the 10% Early Distribution Penalty: When and Why it Applies
- Exceptions to the 10% Penalty: Qualification Criteria
Section 2: Strategies to Retain Exception Qualifications (20 minutes)
- Detailed Analysis of Exception Criteria
- Case Studies: Scenarios Where Clients Successfully Avoided the 10% Penalty
- Advisor Strategies: How to Guide Clients in Retaining Qualification for Exceptions
Section 3: Correcting IRA Custodian Reporting Errors (20 minutes)
- Common IRA Custodian Reporting Mistakes
- Steps for Identifying and Correcting Reporting Errors
- Working with Custodians: Best Practices and Communication Strategies
- Case Study: Successful Correction of a Reporting Error
Section 4: Managing RMD Shortfalls (25 minutes)
- Overview of Required Minimum Distributions (RMDs)
- Identifying and Avoiding Common RMD Mistakes
- Corrective Measures for RMD Shortfalls: Procedures and Timelines
- Interactive Exercise: Identifying and Correcting Hypothetical RMD Errors
Section 5: Coordinating QCDs with RMDs (15 minutes)
- Understanding Qualified Charitable Distributions (QCDs)
- Strategies for Coordinating QCDs to Satisfy RMDs
- Tax Implications and Benefits of QCDs in RMD Strategy
- Case Study: Effective Coordination of QCDs and RMDs
Conclusion and Wrap-Up (10 minutes)
Interactive Q&A (30 minutes)
Summary
Beneficiaries must take required minimum distributions (RMD) from the IRAs and employer plana account they inherit. However, the options for distributions are determined by the class in which a beneficiary fall. Beneficiaries can maximize the tax-deferred advantage of their inherited accounts by stretching distributions over the longest period available. This course will help advisors advise beneficiaries of their distribution options and obligations.
Course Outline
Introduction (10 minutes)
Brief Explanation of IRA and Employer-Sponsored Retirement Plan Beneficiary Distribution Options
Section 1: Identifying Different Types of Beneficiaries (20 minutes)
- Overview of Beneficiary Designations
- Classes of Beneficiaries: Designated, non-designated, and eligible designated beneficiaries.
- Case Studies: Characteristics and Implications for Each Beneficiary Type
Section 2: Distribution Options for Beneficiaries (30 minutes)
- Understanding Distribution Options Available to Different Classes of Beneficiaries
- Rules and Regulations Governing Each Distribution Type
- Impact on Beneficiary Distributions: Tax Implications and Planning Strategies
- Interactive Activity: Match Beneficiaries with Suitable Distribution Options
Section 3: Identifying Distribution Opportunities (30 minutes)
- Identifying beneficiaries who are still eligible for the stretch distribution strategy.
- The importance of applying the right distribution Strategies to beneficiaries.
- Steps for Account Owners: Planning for Multi-Generational Benefits within the limits of SECURE Act 1.0
- Beneficiary Actions to Maximize Available Distribution Periods
- Case Study: Correct use of successor beneficiary options for multi-generations
Section 4: Understanding and Avoiding Penalties (20 minutes)
- Overview of Penalties for Missing Distribution Deadlines
- Circumstances Under Which Penalties Can Be Waived
- Best Practices for Meeting Distribution Deadlines
- Group Exercise: Identifying and Resolving Penalty Scenarios
Conclusion and Wrap-Up (10 minutes)
Interactive Q&A (30 minutes)
Summary
We covered distribution rules for account owners and beneficiaries and portability (rollover and transfer) rules for IRAs and employer plans, but there are other rules that are equally important. This module fills in some of the gaps that were not covered in the other three modules and presents the opportunity for you to ask questions about any IRA topics.
Course Outline
Introduction (10 minutes)
Explanation of IRA uncommon IRA strategies and often overlooked opportunities.
This session will also include an open forum for advisors to ask questions on any topic covered in either of the four modules.
Section 1: Demystifying Back-Door Roth Conversion Strategies (30 minutes)
- Explaining the Concept of Back-Door Roth Conversions
- Common Myths and Misconceptions about Back-Door Roth Conversions
- Real-World Examples and Case Studies
- Q&A Session on Roth Conversions
Section 2: Navigating the SECURE Act 1.0 and 2.0 (30 minutes)
- Overview of SECURE Act 1.0 and 2.0: Key Provisions and Changes
- Common Questions and Concerns about SECURE Acts
- Implications for IRA Planning and Strategy
- Interactive Discussion: Experiences and Questions about SECURE Acts
Section 3: Identifying and Addressing Key Gaps in IRA Savings Protection (20 minutes)
- Critical Gaps in IRA Savings Protection
- Strategies for Identifying Vulnerabilities in Clients' IRA Plans
- Case Studies: Effective Gap Analysis and Mitigation Techniques
- Group Activity: Assessing and Addressing Hypothetical Client Scenarios
Section 4: IRA Planning Strategies for the Current Year (20 minutes)
- Essential IRA Planning Strategies for the Year
- Adapting to Changing Regulations and Market Conditions
- Best Practices for Implementing IRA Strategies
- Final Q&A Session on IRA Planning Strategies
Conclusion and Wrap-Up (10 minutes)
Interactive Q&A (30 minutes)