Like Roth IRAs, contributions to designated Roth accounts (DRA), including Roth 401(k)’s, are made with funds that have already been taxed and qualified distributions are tax-free.
You must know the general technical rules that apply to these accounts, in order to help your clients determine how to ensure that distributions are tax-free. Most importantly, you will learn the differences and similarities between a DRA and Roth IRA, and how rollovers could affect the eligibility for tax-free distributions.
Upon course completion, you will be able to:
- Describe the general technical rules that apply to DRAs
- Describe the in-Plan Roth Rollovers rules
- Identify Qualified distributions vs Nonqualified distributions
- Differentiate DRAs and rollover contributions
- Determine how a rollover from a DRA to a Roth IRA could affect distributions from the Roth IRA
Faculty: Denise Appleby, Appleby Retirement Consulting Inc.
Denise Appleby is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA tools and resources for financial and tax professionals.
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