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Retirement distributions, RMDs, inherited accounts and Social Security

SEE 1 Chapter 12 · IRS outline 2B3, 2B5, 2B8, 2B9, 2B10, 2B11, 2B12

Money coming out of retirement accounts is where clients get hurt: a surprise 10% penalty, a missed required distribution, a defaulted 401(k) loan, Social Security that suddenly becomes 85% taxable, or an inherited IRA emptied in one year. Hank and Rose are retired, Rose's sister just inherited an IRA, and Daniel cashed out a 401(k) when he left his job. Nadia walks Theo through Form 1099-R, line by line.

In this chapter

1. Form 1099-R, annuities and special distributions
2. The 10% early distribution tax and its exceptions
3. Required minimum distributions
4. Loans from qualified plans
5. Taxing Social Security and Railroad Retirement benefits
6. Inherited retirement accounts
7. Foreign pensions and retirement income

This chapter has 7 lessons and 72 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Form 1099-R
• rollovers
• early distribution penalty and exceptions
• required minimum distributions
• plan loans
• taxable Social Security
• inherited accounts
• foreign pensions

Chapter 11: IRAs: contributions, basis, Roth and conversions · Chapter 13: Basis and capital gains