Individual Retirement Accounts

After completion of this course, you will be able to:

Chapter 1

• Describe the general provisions and limits applicable to IRAs at the time of their introduction;
• Identify the enhancements made to the early IRA program that currently permit:
  • Spousal IRAs for unemployed spouses,
  • Active participants in employer-sponsored qualified plans to participate in IRAs,
  • Eligible individuals to participate in Roth IRAsthat offer tax-free qualified distributions, and
  • Contributions to be made to Coverdell Education Savings Accounts.

Chapter 2

• Discuss the limitations imposed on Roth IRAeligibility and contributions;
• Explain the tax treatment of contributions to and distributions from Roth IRAs;
• Describe the conditions that must be met for a Roth IRAdistribution to be considered a “qualified distribution”;
• Explain the distribution rules applicable to Roth IRAdistributions upon the death of the owner; and
• Discuss the rules applicable to traditional to Roth IRAconversions

Chapter 3

• Discuss the financial vehicles in which IRA assets may be invested;
• Identify the investments in which IRA assets may not be allocated;
• Describe the additional benefits provided by investing IRA assets in an annuity; and
• List the factors that should be considered in determining the suitability of a variable annuity as a client’s IRA investment.

Chapter 4

• Discuss the tax treatment of ESA earnings and distributions;
• Explain the eligibility requirements applicable to ESA contributors and beneficiaries;
• Describe the ESA contribution limits; and
• Discuss the rules governing ESA rollovers.

Chapter 5

• Identify the additional employer benefits associated with establishing a Simplified Employee Pension IRA compared to establishing a qualified plan;
• Explain the rules governing the employees that must be included in, and the employees that may be excluded from, a Simplified Employee Pension IRA;
• Discuss the rules applicable to employer and employee contributions to a Simplified Employee Pension IRA;
• Describe the tax treatment of Simplified Employee Pension IRA contributions and distributions; and
• Explain the rules applicable to Simplified Employee Pension IRA rollovers.

Chapter 6

• Describe the eligibility rules applicable to a SIMPLE IRA for employers and employees;
• Explain the rules governing SIMPLE IRA contribution sources and the limits applicable to annual additions;
• Describe the rules and restrictions governing rollovers from a SIMPLE IRA; and
• Discuss the taxation and rules applicable to SIMPLE IRA distributions.