Avoiding Taxes and Penalties on Early Retirement Plan Distributions FLEXCAST

Overview

Early distributions from IRAs and qualified retirement plans can trigger income tax and the 10% additional tax, unless you know exactly where the exceptions, repayment rules, and rollover mechanics apply. In this course, Alice Orzechowski, CPA, CMA, EA walks practitioners through the rules that govern early, distinguishing truly taxable withdrawals from those that may be penalty-free or fully avoid tax and penalty when properly repaid. In this course, you’ll review practical, client-facing scenarios including loan offset distributions, repayment-eligible distributions added or expanded in recent law changes, and the core Section 72(t) exception framework, and more. This course also flags common missteps and court case examples of what doesn’t qualify so you can help clients avoid preventable taxes and penalties.

Highlights

Avoiding taxes and penalties on early retirement plan distributions.

Prerequisites

None.

Designed For

CPAs and tax professionals.

Objectives

Distinguish early distributions that are subject to income tax and the 10% additional tax from those eligible for penalty relief or repayment treatment. Apply rollover and repayment rules to common fact patterns, including loan offset distributions and repayment-eligible distributions. Identify and apply key Section 72(t) exceptions, including separation from service, disability, medical expense rules, IRS levy treatment, QDRO distributions, and substantially equal periodic payments. Evaluate IRA-specific exceptions and recognize plan-type limitations. Advise on missed rollover remediation using Rev. Proc. 2020-46 self-certification and recognize high-risk non-qualifying hardship rationales highlighted by case law

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.