Course Information

Course No:  9511522

Course Name:  Tax Treatment of Individual Retirement Arrangements

Field of Study:    Taxes

Course Description:  

Federal tax policy is designed to accomplish numerous goals, from funding government to encouraging socially-beneficial actions such as saving for retirement. ERISA, the Employee Retirement Income Security Act, was created principally to meet the latter objective.

ERISA created an individual retirement arrangement—usually referred to simply as an IRA—to encourage taxpayers who were not participants in an employer-sponsored qualified retirement plan to save money to fund their future retirement needs. That was the initial legislative action. In order to participate, you needed to be employed and not a participant in a pension, profit-sharing or other qualified plan.

Since that earlier ERISA expansion related to IRAs, new IRAs have been added, including Roth IRAs that offer tax-free qualified distributions rather than deductible contributions. In order to differentiate the newer Roth IRA from its earlier cousin, the original IRA is now referred to as a “traditional” IRA.

Learning objectives: After completing this section, you should be able to:

  • Apply the rules governing eligibility and permitted contribution levels applicable to traditional IRAs;
  • Identify the requirements and benefits related to a spousal IRA;
  • List the rules governing the tax treatment of contributions to and distributions from a traditional IRA; and
  • Recognize the traditional IRA distribution rules.
  • Eligibility and permitted contribution levels applicable to Roth IRAs;
  • The tax treatment of contributions to and distributions from Roth IRAs; and
  • Roth IRA distributions.

Course Material: Online Material

Program level: Overview

Prerequisites: General understanding of federal income taxation.

Advance preparation: None

Type of delivery method: QAS Self-study

Recommended CPE credits:   2.0

Final examination expiration date:   The program participant will have one year from the date of purchase to complete the course and final examination.