Table of Contents

Chapter 1 - Retirement Plans - Section 1. 7

Deferred Compensation. 7

Qualified Deferred Compensation. 7

Qualified v. Nonqualified Plans. 7

Major Benefit 8

Current Deduction. 8

Timing of Deductions. 8

Compensation Base. 8

Salary Reduction Amounts. 8

Comparison with IRAs & Keoghs. 9

Basic ERISA Provisions. 12

ERISA Reporting Requirements. 12

Fiduciary Responsibilities. 12

Bonding Requirement 13

Prohibited Transactions. 13

Loans. 13

Employer Securities. 14

Excise Penalty Tax. 14

PBGC Insurance. 15

Sixty-Month Requirement 15

Recovery against Employer 15

Plans Exempt from PBGC Coverage. 15

Basic Requirements of a Qualified Pension Plan. 16

Exclusive Benefit of Employees. 17

Highly Compensated Employees. 17

Participation & Coverage. 17

Average Benefits Test 19

Numerical Coverage. 19

Related Employers. 20

Chapter 1 - Section 1 Review Questions. 21

Chapter 1 - Retirement Plans - Section 2. 23

Vesting. 23

Full & Immediate Vesting. 23

Minimum Vesting. 23

Nondiscrimination Compliance. 25

Contribution & Benefit Limits. 25

Defined Benefit Plans (Annual Benefits Limitation) - '415. 25

Defined Contribution Plans (Annual Addition Limitation) - '415. 26

Limits on Deductible Contributions - '404. 26

Basic Types of Corporate Plans. 26

Defined Benefit 27

Mechanics. 27

Defined Benefit Pension. 27

Defined Contribution. 27

Mechanics. 27

Discretion. 27

Types of Defined Contribution Plans. 28

Profit Sharing. 28

Requirements for a Qualified Profit Sharing Plan. 28

Eligibility. 28

Deductible Contribution Limit 29

Substantial & Recurrent Rule. 29

Money Purchase Pension. 29

Cafeteria Compensation Plan. 30

Section 401(k) Plans. 31

Employee Contributions. 32

Non-Deductible. 33

Plan Terminations & Corporate Liquidations. 33

Self-Employed Plans - Keogh. 33

Contribution Timing. 33

Controlled Business. 34

General Limitations. 34

Mechanics. 34

Figuring Retirement Plan Deductions For Self-Employed. 35

Self-Employed Rate. 35

Determining the Deduction. 36

Chapter 1 - Section 2 Review Questions. 37

Chapter 1 - Retirement Plans - Section 3. 39

Individual Plans - IRAs. 39

Mechanics. 39

Phase-out 39

Special Spousal Participation Rule - '219(g)(1) 39

Spousal IRA.. 41

Eligibility. 41

Contributions & Deductions. 41

Employer Contributions. 42

Distribution & Settlement Options. 42

Life Annuity Exemption. 42

Minimum Distributions. 42

Required Minimum Distribution. 43

2009 Waiver of Required Minimum Distribution Rules - Expired. 43

Definitions. 43

Distributions during Owners Lifetime & Year of Death after RBD.. 44

Sole Beneficiary Spouse Who Is More Than 10 Years Younger 45

Distributions after Owners Death. 45

Inherited IRAs. 47

Estate Tax Deduction. 48

Post-Retirement Tax Treatment of IRA Distributions. 48

Income In Respect of a Decedent 49

Estate Tax Consequences. 49

Chapter 1 - Section 3 Review Questions. 50

Chapter 1 - Retirement Plans - Section 4. 52

Tax-Free Rollovers. 52

Rollover from One IRA to Another 52

Waiting Period between Rollovers. 53

Partial Rollovers. 53

Rollovers from Traditional IRAs into Qualified Plans. 53

Rollovers of Distributions from Employer Plans. 53

Withholding Requirement 53

Waiting Period between Rollovers. 54

Conduit IRAs. 54

Keogh Rollovers. 54

Direct Rollovers from Retirement Plans to Roth IRAs. 54

Rollovers from SIMPLE IRAs. 55

Roth IRA - '408A.. 56

Eligibility. 56

Contribution Limitation. 57

Roth IRAs Only. 57

Roth IRAs & Traditional IRAs. 57

Conversions. 58

Recharacterizations. 59

Reconversions. 60

Taxation of Distributions. 60

No Required Minimum Distributions. 60

Simplified Employee Pension Plans (SEPs) 61

Contribution Limits & Taxation. 63

SIMPLE Plans. 63

SIMPLE IRA Plan. 64

Employee Limit 64

Other Qualified Plan. 64

Set up. 64

Contribution Limits. 65

Salary Reduction Contributions. 65

Employer Matching Contributions. 65

Deduction of Contributions. 66

Distributions. 66

SIMPLE '401(k) Plan. 66

Chapter 1 - Section 4 Review Questions. 67

Answers & Explanations. 69

Chapter 1 - Section 1 Review Questions Feedback. 69

Chapter 1 - Section 2 Review Questions Feedback. 73

Chapter 1 - Section 3 Review Questions Feedback. 76

Chapter 1 - Section 4 Review Questions Feedback. 79

Glossary. 82

Keywords & Phrases. a

CPE Exam Answer Sheet c

Final Examination. d