please see attached file

Lesson 2 Tax 515

1. Explain the various contribution limits and amounts that apply to both Roth and

Traditional IRA accounts. Be sure to separate the rules based on the ages defined.

2. Taking into account the definition of compensation as it applies to the IRA, explain how the definition and rules differ based on the type of IRA being considered or evaluated, and what types of things might impact the ruling of whether something is deemed compensation or not by the IRS?

3. Discuss the various special rules that apply to Roth IRA contributions and the different characteristics that might impact these rules and their application.

4. In reviewing the contribution limits and rules, what might we expect to happen if we were to make excessive contributions to either a traditional or Roth IRA for a given period?

5. Once we get ready to start taking distributions from our retirement account, how do we calculate our minimum distribution amounts and what other aspects must be considered from a rule and penalty perspective when initiating these distributions?

6. In setting up a retirement plan, one of the things that often is a part of this process is setting up a beneficiary for the plan in the event that the individual who owns the plan has something happen to them prior to the plan expiring. How do we set up a beneficiary for a new retirement plan? What is the general process that must be followed for changing beneficiaries for existing plans?

7. As with all receipts of monies, the IRS will be looking for taxes to be levied against the distributions from an IRA. How does taxation generally work for distributions from traditional IRA plans? Roth IRA plans? What are some of the key differences we should understand?

8. How do we determine a surviving spouse’s best option for distribution to limit tax impact on distributions? How might age play a part in the answer to this question?

Professional Development Questions

1. Explain the various measures that apply to the establishment of contributions to a traditional or Roth IRA account and how these measures should be evaluated over time to ensure that the proper contributions are made to reach the desired goals of the retirement plan.

2. Discuss how a good understanding of the rules involved with distributions could reduce the penalties and taxes levied on distributions taken from a retirement account?