Lesson 8 Tax 515


How might state rules allow or disallow parts of all of health savings accounts to include contribution allowances and distributions from them?


Due to the longevity of much of the retirement planning process, how might the change to a retirement guideline or law impact the contributions and distributions of some plan types substantially?


Compare and contrast Health Savings Accounts (HSAs) and IRAs. Include a comparison of the tax benefits.


Using what you have learned as part of this week’s state tax rules overview, discuss how the state tax rules regarding IRA accounts might impact traditional IRA contributions?


Explain how state taxing rules impact traditional IRA account distributions?


Discuss how Roth IRA account distributions might be impacted by specific state tax rules and their application on the monies returned from Roth investments?


How might state tax rules impact the process of converting rollovers to Roth IRA accounts? What are some of the typical areas that might be impacted?


Continuing the discussion around state tax impacts, how might state rules impact SEP and Simple IRA contributions and distributions?

Professional Development Question

You have been assigned as the tax lead over your company’s retirement plan. Company leadership has asked that you evaluate the effect of state tax laws on the current retirement plan (SEP), and other available retirement plan options to determine what the likely impact of the state’s guidelines are on the employees of the company given the plan options.

Using the guidelines for this week’s readings, and past week’s materials, describe the general process and likely areas that could be impacted here based on the state guidelines and rules for retirement plans.