Discuss the general rules that apply to Large IRA balances and how these differ from ordinary IRA balances from a rule perspective.


Explain when the exemption amount would be used and what the guidelines are for its use and impact on an IRA account.


Using the guidelines for taking distributions from an IRA account, explain the requirements that must be adhered to when taking distributions from large balance IRA accounts?


There are many guidelines on beneficiaries and how these are determined and administered for an IRA account. Discuss the guidelines that a beneficiary must understand when they are to be tied to an IRA account?


Explain what the guidelines are for the use of a trust in conjunction with a distribution from an IRA account? What types of tax and income effects might we consider here?


Discuss some of the tax strategies that might be used to reduce income and estate taxes for Roth IRA accounts that are deemed large in terms of their balance.


When might a simplified employee pension plan be needed or a good idea from a retirement planning perspective? What types of things might we consider here before opting to use a SEP?


Discuss the advantages and disadvantages of a SEP over a qualified plan.

Professional Development Question

You have recently been appointed the company retirement planning officer, and as part of this role have been asked to review the company’s current retirement plan options. One preference of management was to look into using a SEP as the companies retirement plan option for the next year. You have been asked to research this idea and present a report back to management that outlines the benefits of this strategy, to include downsides this option may have in comparison to the existing Traditional IRA option the company currently has.

Please develop your paper as if you were presenting your findings on why you either think the SEP or IRA option is the way to go based on this week and past weeks’ readings and discussions. Be sure to include the rationale behind your thoughts, as well as specific rules and guidelines that might support you thoughts here.