Distributions from retirement accounts that occur before the account owner reaches age 59« are subject to a 10% additional tax, unless an exception applies. Eligibility for any of these exceptions is determined by several factors, including the type of account from which the distribution is made. Making a wrong move can result in a retirement account owner losing eligibility for an exception. In some cases, exceptions can only be claimed through proper reporting on the individual’s tax return.
Early distribution penalty. Exceptions to the age 59« rule. Substantially equal periodic payments. Exceptions by plan/account type. Transfer and rollover rules and their effects on qualifications for the exceptions. Claiming the exception when an IRA custodian’s tax reporting shows no exception. The rules that apply to the different exceptions.
CPAs and other tax professionals.
To be able to identify distributions that might be subject to the 10% early distribution penalty. To ensure that clients who qualified for the exceptions do not pay the 10% early distribution penalty because of conflicting tax reporting by IRA custodians and plan trustees. To understand the tax reporting requirements that apply to early distributions. To determine suitability for the substantially equal periodic payment program.
This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.
- Denise Appleby, Western CPE
Non-Member Price $56.00
Member Price $49.00