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Distributions, Taxation & After-Tax Contribs: A Two-Part Program
Presentor: David Schultz Recorded Date: 8/27/2015 Duration: 200 Min.

This program was recorded during live presentations given on August 27 and 28, 2015 at 12:00PM EST.

Distributions, Taxation & After-Tax Contributions: A Two-Part Program

While many retirement plan issues come and go, distribution and taxation rules present a continuing challenge to plan administrators. The plan eventually must distribute all plan assets, and each distribution has tax consequences.

This Web seminar reviews the general taxation rules that apply to plan distributions, including the timing of distribution rules, consent requirements and rollover options, and premature distribution penalty. The seminar also includes a discussion of the complex required minimum distribution rules, and the withholding requirements for distributions. Intertwined throughout the discussion the speaker explores distributions to non-participants, such as death beneficiaries and QDRO alternate payees. Finally, the presentation covers the options and taxation (including basis recovery rules) associated with Roth contributions, rollovers and transfers (including in-plan Roth transfers).

Additionally, recent guidance from the IRS and articles in financial publications have created interest in after-tax voluntary employee contributions. For decades, these have been the forgotten step-child of the retirement plan world. That has been changing. This seminar will include an in depth look at after-tax employee contributions and how they are used. We will closely examine current strategies and discuss whether they work and whether they make sense.

For experienced practitioners, this web seminar provides an excellent refresher. For newer practitioners, this seminar is a must. All attendees will benefit from a holistic explanation of the distribution and taxation rules.

Topics include:

  • General taxation and consent rules
  • Rollover rules, including in-plan Roth rollover and the new in-plan Roth transfers
  • Partial distributions and annuity payments
  • Withholding requirements
  • Basis recovery rules
  • Special taxation rules
  • Net unrealized appreciation
  • Lump-sum distributions
  • §72(t) penalty tax and exceptions
  • QDRO distributions and taxation
  • Required Minimum Distributions (RMDs)
  • Sources of After-tax funds
  • ACP testing
  • Using after-tax contributions to reach 415 maximum
  • Converting after-tax funds to Roth
  • Comparison of converting to IRA or in-plan
  • Matching after-tax contributions

There are no prerequisites or other advanced preparation for this program.

Level: Intermediate

Instructional Delivery Method
Group – Internet-Based

Speaker: David Schultz, J.D.

Objectives: After attending this Web seminar, an attendee should be able to:


  • Determine the taxation consequences of a distribution
  • Apply the consent rules to a particular distribution
  • Calculate the taxable portion of a distribution from an account that includes after-tax contributions
  • Identify a distribution eligible for lump sum distribution treatment
  • Apply the separate account rule to an account with both Roth and non-Roth money
  • Calculate a required minimum distribution for a participant
  • Explain the non-spouse beneficiary rollover options
  • Advise a client on whether to add after-tax contributions to a plan
  • Properly test after-tax contribution
  • Explain the issues involved in converting after-tax funds to Roth


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