The single biggest asset most clients have is their retirement account – IRAs, 401(k)s, other defined benefit plans, and annuities. These retirement plans are often tax-favored but in exchange for that status come with a variety of restrictions. Each is also governed not only by the underlying terms of its sponsors and providers but by an array of complex tax regulations. Understanding how these complex financial products are treated not only for tax purposes but, often more importantly, for purposes of transfer at death is the central focus of trust and estate plans for most clients. This program will provide you with a guide to tax treatment and transfer rules of client retirement assets.
• Allocation of estate and gift taxes
• QTIPing IRAs and trusts as IRA beneficiaries
• Trust distributions as income v. principal
• Understanding traps of beneficiary designations
• Creditor claims against retirement assets
• How annuity distributions are treated for income tax purposes – ordinary income, capital gain, return of investment
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