Discuss the tax and estate planning issues of particular interest to clients during retirement. Topics include recognizing income from various sources, strategies for dealing with taxes, managing assets held in taxable and tax-deferred accounts, understanding how investments are taxed, estate planning objectives, and the devices used to distribute property as intended by its legal owners while minimizing costs and taxes.

8–1 Compare and contrast the taxation of mutual fund distributions and share sales.
8–2 Compare and contrast the tax treatment that applies to stock and fixed income.
8–3 Analyze a situation to determine the income tax treatment of a traditional IRA distribution.
8–4 Analyze the required minimum distribution (RMD) rules that apply to distributions from tax-deferred investments.
8–5 Analyze the rules pertaining to the taxation of Roth IRA distributions.
8–6 Compare the taxation of lump sum versus lifetime income distributions from an annuity.
8–7 Determine the applicable rules for handling a gain on the sale of a principal residence for a particular client.
8–8 Explain when and how Social Security benefits are taxed.
8–9 Analyze the importance of creating a tax diversified income portfolio for retirement.
8–10 Identify the objectives of estate planning.
8–11 Identify the uses of wills and will substitutes.
8–12 Discuss the basics of the federal gift and estate tax systems and how they are related.
8–13 Compare and contrast the federal gift and estate tax systems.
8–14 Recommend the use of the marital deduction and bypass planning, trusts, and charitable deductions to meet client estate planning objectives.

About the Author

Kristen MacKenzie, MBA, CFP®, CRPC® is an associate professor at the College for Financial Planning. Kristen has over 20 years of experience in the financial services industry, both as an active financial planner and as a provider of financial education. She graduated from the University of Connecticut with a degree in economics and later received her MBA at the University of Colorado. You can contact Kristen at kristen.mackenzie@cffp.edu.

Complexity Level: Intermediate