Lesson 4 Tax 515 1. Discuss the different requirements for disclosing items to both the IRA owner and the IRS and when each applies. 2. List out the different reports required by the IRA ow

Lesson 4 Tax 515

1.      Discuss the different requirements for disclosing items to both the IRA owner and the IRS and when each applies.

2.      List out the different reports required by the IRA owner and the IRS for an IRA account and what the use of each is.

3.      Taxpayers are required to report and pay taxes on certain distributions from IRA accounts. Explain the criteria for when a distribution is made as to when a taxpayer must pay tax or not on the distribution amount.

4.      After reviewing the different types of penalties that might apply to an IRA owner and their actions, explain the different types of penalties and when each would be in effect.

5.      Discuss the general filing information requirements for IRA accounts, to include the various forms and the use of each.

6. In reviewing the different forms that are required through the IRA and tax process that impacts the IRA account owner, discuss who is required to fill out each of these forms, as well as who is responsible for withholding the funds for inclusion in the IRA account.

Professional Development Question

Professional Development Question

Assume you are sitting down with an investment advisor to discuss the opening of either a

Traditional or Roth IRA account for you future. Determine what types of questions you would ask this advisor, specific to the penalties, distributions, filings, and withholding rules you might expect. How would the answers to these questions impact your choice bet