Distribution Planning

Overview

Most of your clients have probably saved over the years through various individual and employer-sponsored retirement plans to ensure that they’ll have sufficient income during retirement. They may be surprised, however, to discover that they can’t simply take money out whenever they like, nor can they leave it in a plan indefinitely, hoping to pass the assets to heirs. Financial practitioners, therefore, stand in a unique position to help clients understand what they can and what they must do with respect to taking distributions from qualified plans.

This course presents an in-depth look at distribution planning for retirement and provides a clear understanding of the complex rules that govern distributions from qualified plans and IRAs. It provides a review of the basics of qualified employer plans, traditional IRAs, and Roth IRAs and then explains in detail the requirements that apply to premature distributions, required distributions, and distributions at death.

Learning Objectives

Upon completion of this course, students will be able to:

  • demonstrate an understanding of the characteristics of today's retirees and why distribution planning is critically important
  • differentiate between the types of distributions that may be taken from defined benefit plans, defined contribution plans, and IRAs
  • recognize how distributions from retirement plans are taxed
  • pinpoint when the penalty tax will apply to distributions before age 59½ and the exceptions to this rule
  • demonstrate an understanding of the required minimum distribution rules that apply to qualified employer plans and traditional IRAs in light of the SECURE Act
  • understand the different distribution-at-death rules that apply to plan beneficiaries, and the revised classifications of beneficiaries created by the SECURE Act
  • identify the types of retirement plans that allow loans and hardship withdrawals and the rules that apply to these distributions
  • articulate the rules that apply to rollovers from retirement plans

Designed For

Life and health insurance producers; financial planners and advisors; CPAs
WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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