Objective
- Explain the eligibility requirements for funding Roth IRAs and Roth 401(k) plans
- Describe the tax impacts of rollovers from employer plans to Roth IRAs
- Demonstrate the steps that determine whether a Roth distribution is tax-free
- Determine when the ordering rules apply
Highlights
- Funding options for Roth accounts
- 529 plans to Roth IRAs
- Backdoor Roth strategies
- The new Roth SEP and Roth SIMPLE IRAs
- Roth 401(k) contribution rules
- The tax impact of rolling a 401(k) to a Roth IRA
- Who can start the Roth IRA 5-year clock?
- The 5-year rules for Roth 401(k)s and Roth IRAs
- Direct and indirect Roth conversions
- Direct and indirect rollovers from Roth 401(k) plans
- The risky recapture of the 10% penalty
- How the ordering rules work and when they apply
- FIFO rules for Roth IRAs
- Case studies and cheat sheets to reinforce concepts
Designed For
Any financial or tax professional who provides service and support to clients who own Roth IRAs and employer plan accountsPrerequisite
A basic understanding of funding and distribution rules for IRAs and rollover rules for employer plansAdvanced Preparation
None