IRAs: What You Need to Know about Contributions, Conversions and Distributions

Overview

This course covers the essentials of IRA’s. We’ll go well beyond the basics to cover crucial topics: when to convert traditional IRA’s to Roth IRA’s, how to minimize tax on conversion, and when clients should recharacterize IRA contributions (and how to recharacterize). We’ll also discuss how to get a waiver for clients who fail to take a required minimum distributions and other traps in the IRA area including prohibited transactions, excess contributions, and impermissible investments.

Highlights

Determine clients who are well suited for conversion from traditional to Roth IRA’s. When should clients recharacterize IRA contributions? What special traps are present in the IRA area? How to receive a waiver for clients who failed to take the proper required minimum distributions (updated for the SECURE Act 2.0). Requirement minimum distributions from inherited IRAs (updated for SECURE Act 2.0 and also 2023 IRS guidance).

Prerequisites

None

Designed For

CPAs and in public practice and tax staff in private practice who have some experience with federal taxes.

Objectives

Identify clients who should convert traditional IRA’s to Roth IRA’s. Identify clients who should recharacterize IRA contributions and how to recharacterize. Determine who are the ideal beneficiaries of a particular IRA.