Surgent's Key Roth IRA and Roth 401(k) Rules for Funding and Tax-free Distributions

Overview

How much can you contribute to a Roth IRA, Roth 401(k), SEP Roth IRA, or SIMPLE Roth IRA? How will a Roth distribution qualify to be tax-free? How did SECURE Act 1.0 and SECURE Act 2.0 change the Roth rules? These are only some of the key Roth questions advisors must know the answers to. Plus, as Roth accounts have increasingly become an essential component of retirement savings portfolios, with one-third of IRA owners owning Roth IRAs, advisors have even more reasons to be Roth-proficient. To that end, the instructor will simplify critical rules that govern Roth funding and Roth distributions for Roth IRAs, Roth 401(k)s, and sister plans.

Highlights

Funding options for Roth accounts
529 plans to Roth IRAs
Backdoor Roth strategies
The new Roth SEP and Roth SIMPLE IRAs
Roth 401(k) contribution rules
The tax impact of rolling a 401(k) to a Roth IRA
Who can start the Roth IRA 5-year clock?
The 5-year rules for Roth 401(k)s and Roth IRAs
Direct and indirect Roth conversions
Direct and indirect rollovers from Roth 401(k) plans
The risky recapture of the 10% penalty
How the ordering rules work and when they apply
FIFO rules for Roth IRAs
Case studies and cheat sheets to reinforce concepts

Prerequisites

A basic understanding of funding and distribution rules for IRAs and rollover rules for employer plans

Designed For

Any financial or tax professional who provides service and support to clients who own Roth IRAs and employer plan accounts

Objectives

Explain the eligibility requirements for funding Roth IRAs and Roth 401(k) plans
Describe the tax impacts of rollovers from employer plans to Roth IRAs
Demonstrate the steps that determine whether a Roth distribution is tax-free
Determine when the ordering rules apply