Pensions & Annuities

Publisher
WiseGuides, Inc.
2796 Greenspire Ln
Akron, Oh 44333
Copyright © 2010

Field of Study: Taxes
Level: Basic
Recommended CPE Credit 4 hours
Prerequisites: None
Advanced Preparation: None
Type of Delivery: Self-Study
Expiration: Course expires 1 year after purchase
Course Update: January 2010
Accreditation: NASBA, IRS, CTEC, OTPB
Guarantee/Complaint Resolution

Course Outline


Lesson 1 - General Information
Learning Objectives 1
Overview
Types of Pensions/Annuities
More Than One Program
QDRO
Variable Annuities
Withdrawals
Annuity Payments
Death Benefits
Section 457 Deferred
Disability Pensions
Public Safety Officers


Lesson 2 - Railroad Retirement Benefits
Learning Objectives 2
RRB First Category
RRB Second Category
Nonresident Aliens
Items on Form RRB-1099-R
RRB Repaid Benefits


Lesson 3 - Withholding & Estimated Tax
Learning Objectives 3
Withholding Tax
Choosing No Withholding
Periodic Payments
Nonperiodic Distributions
Eligible Rollover Distribution
Estimated Tax


Lesson 4 - Investment in Contract
Learning Objectives 4
Cost
Your Annuity Starting Date
Foreign Employment


Lesson 5 - Taxation of Periodic Payments
Learning Objectives 5
How Periodic Payments are Taxed
Fully Taxable Payments
Partly Taxable Payments
Qualified Plan Annuity
Exclusion Limit
Exclusion Not Limited to Cost
Simplified Method
Who Must Use Simplified Method
Guaranteed Payments
Cannot Use Simplified Method
General Rule
Who Must Use General Rule


Lesson 6 - Nonperiodic Payments
Learning Objectives 6
Taxation of Payments
Corrective Distributions
Figuring the Taxable Amount
Employer Securities
Distribution On or After
Distribution Before
Before Annuity Starting Date
Exception to Allocation Rule
US Savings Bonds Distribution
Loans Treated as Distributions
Exception for Qualified Plan
Effect on Investment
Transfers of Annuity Contracts
Tax-Free Exchange
Reported on Form 1099-R


Lesson 7 - Lump-Sum Distributions
Learning Objectives 7
If You Receive a Lump-Sum
Alternate Payee
Reemployment
Do Not Qualify
How to Treat Distribution
Optional Lump-Sum Treatment
Changing Your Mind
Taxable and Tax-Free Parts
Lump-Sum Distribution Losses
Capital Gain Treatment
Formulas
Federal Estate Tax
10-Year Tax Option
Form 4972 Examples


Lesson 8 - Treatment of Rollovers
Learning Objectives 8
Rollovers
Rollover Distribution
Rollover of Nontaxable Amounts
Withholding Requirements
Direct Rollover Option
Payment to You Option
Partial Rollovers
Time for Making Rollover
Frozen Deposits
Retirement Bonds
Annuity Contracts
Rollovers of Property
Property and Cash Distributed
Domestic Relations Order
Rollover by Surviving Spouse
Reporting Distribution
Written Explanation
Reasonable Period of Time
Roth Accounts
Qualified Settlement Income


Lesson 9 - Special Additional Taxes
Learning Objectives 9
Tax Penalty
Tax on Early Distributions
5% Rate
Exceptions to Tax
General Exceptions
Recapture Tax
Tax on Excess Accumulation
Waiver
Required Beginning Date
5% Owners
Required Distributions
After Employee's Death
Minimum Distributions
Combining Multiple Accounts


Lesson 10 - Survivors & Beneficiaries
Learning Objectives 10
Estate Tax Deduction
Survivors of Employees
Survivors of Retirees
Guaranteed Payment

Course Objectives

Lesson - 1

After completing Lesson 1, you will be able to:
  • Identify which method is used if the taxpayer has a cost to recover from a pension or annuity plan
  • Define qualified domestic relations order (QDRO)
  • Identify the rules regarding insurance premiums for public safety officers

    • Pay particular attention to paragraphs marked by the Wiseguy.

    He'll guide you to key issues.


Lesson - 2

After completing Lesson 2, you will be able to:
  • Identify how to treat repayment of benefits received in an earlier year

Lesson - 3

After completing Lesson 3, you will be able to:
  • Identify withholding rules for an eligible rollover distribution
  • Identify the consequences regarding withholding tax on retirement plan distributions of periodic payments if the taxpayer does not give the payer his Social Security number

Lesson - 4

After completing Lesson 4, you will be able to:
  • Determine the investment cost in a taxpayer's pension or annuity

Lesson - 5

After completing Lesson 5, you will be able to:
  • Identify who must use the Simplified method to figure the tax-free part of each annuity payment

Lesson - 6

After completing Lesson 6, you will be able to:
  • Determine how any nonperiodic distributions received under a pension or annuity plan are taxed
  • Figure the amount of a distribution that can be excluded from income
  • Figure the taxable amount of distribution before the annuity starting date from a plan other than a qualified retirement plan

Lesson - 7

After completing Lesson 7, you will be able to:
  • Identify what qualifies as a lump-sum distributions
  • Identify the treatment of a lump-sum distribution

Lesson - 8

After completing Lesson 8, you will be able to:
  • Determine the rollover treatment for a designated Roth account
  • Figure the taxable amount when only part of the proceeds from an eligible rollover distribution of property is rolled over
  • Figure the taxable amount of an eligible rollover distribution from a designated Roth account into a Roth IRA
  • Identify the new tax law changes for 2010

Lesson - 9

After completing Lesson 9, you will be able to:
  • Identify when an early distribution recapture tax applies
  • Identify when a taxpayer must receive the minimum required distribution from his retirement plan

Lesson - 10

After completing Lesson 10, you will be able to:

  • Identify the special rules that apply regarding the estate tax deduction for survivors that receive a joint and survivor annuity