Grab the Money and Run? Retirement Plan Loans and Hardship Distributions
Target Audience: CPAs, EAs
Field of Study: Taxation (NASBA); Federal Tax/Tax Related Matters (IRS)
Seminar Level: Beginner
IRS COMMUNICATIONS AND LIAISON IS REGISTERED WITH THE NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY (NASBA) AS A SPONSOR OF CONTINUING PROFESSIONAL EDUCATION ON THE NATIONAL REGISTRY OF CPE SPONSORS. STATE BOARDS OF ACCOUNTANCY HAVE FINAL AUTHORITY ON THE ACCEPTANCE OF INDIVIDUAL COURSES FOR CPE CREDIT. COMPLAINTS REGARDING REGISTERED SPONSORS MAY BE SUBMITTED TO THE NATIONAL REGISTRY OF CPE SPONSORS THROUGH ITS WEBSITE: WWW.LEARNINGMARKET.ORG.
DISCLAIMER: THIS SEMINAR WAS FILMED IN GRAPEVINE, TEXAS, ON JULY 31, 2013, AND THE INFORMATION WAS CORRECT AT THE TIME OF RECORDING.
The Employee Plans office of the Tax Exempt and Government Entities division delivered this seminar at the 2013 IRS Nationwide Tax Forum.
Learn about the tax rules governing loans and early distributions from retirement plans and IRAs, including: limits on loan amounts; rules for getting a hardship distribution; early distributions from IRAs; additional taxes you may incur; and what to do when loans do not go as planned.
By the end of this presentation you will be able to:
- Explain when employees can access their retirement savings in times of financial need via loans and hardship distributions
- List special rules which apply to employers who decide to offer loans and hardship withdrawals in a retirement plan
- Compute maximum loan amounts and implement loan repayment schedules
- Recognize how to fix a mistake in your retirement plan to avoid adverse tax consequences
No prerequisites or advanced preparation are required for this seminar.