Description
Tracking CZTE Contributions, TSP Rollovers, and Non-Deductible IRA Basis to Avoid Double Taxation
Overview of TSP Rollovers: Understand the process and benefits of rolling over Thrift Savings Plan (TSP) funds.
CZTE Contributions: Learn how to extract Combat Zone Tax Exclusion (CZTE) contributions from TSP accounts.
Tax Implications: Explore the tax benefits and considerations of CZTE contributions.
IRS Form 8606: Gain insights on completing IRS Form 8606 for reporting non-deductible contributions to traditional IRAs.
Avoiding Double Taxation: Learn how to track the basis of non-deductible contributions to prevent double taxation.
This presentation will provide participants with essential knowledge and practical steps to manage TSP rollovers effectively, utilize CZTE benefits, and ensure accurate tax reporting with IRS Form 8606.
Learning Objectives
This session addresses key CFP® Certification Learning Objectives by focusing on tax planning techniques for TSP rollovers, CZTE contributions, and non-deductible IRA contributions. Attendees will gain practical knowledge on minimizing tax liability, completing IRS Form 8606 correctly, and managing the basis of non-deductible contributions to avoid double taxation, ensuring accurate and tax-efficient retirement account management.
E. Tax Planning
E.37. Income tax fundamentals and calculations
Understanding the reporting requirements for IRA contributions (Form 8606) and the impact of TSP rollovers on tax reporting.
E.40. Tax reduction/management techniques
Using tax-advantaged contributions like CZTE (Combat Zone Tax Exclusion) funds to minimize tax liability.
Tracking basis in IRAs to prevent double taxation.
E.41. Tax consequences of property transactions
(Light connection) Handling transfers and rollovers properly to avoid unexpected tax issues.
F. Retirement Savings and Income Planning
F.48. Qualified plan rules and options
Understanding TSP rollovers, qualified plan distributions, and tax implications.
F.49. Non-qualified plan rules and options
Managing non-deductible IRA contributions and the associated tax reporting requirements.
F.51. Distribution rules and taxation
Avoiding double taxation through accurate tracking of basis and proper completion of IRS forms.