Discuss the tax implications of employer-provided group medical plans.
The employer can generally exclude the value of accident or health benefits provided to
an employee from the emplo
Define the term employee fringe benefits and identify common types of fringe benefits.
A fringe benefit is a form of compensation where a benefit other than customary taxable wages (in
Deferred Compensation and
Why are deferred compensation arrangements established?
Employers establish deferred compensation arrangements to provide benefits to a select
group of employees without the
List and describe the six major categories of benefits administered by the Social Security
There are six major categories of benefits administered by the Social Security Administration:
and 457 Plans
Describe SIMPLE plans.
Savings Incentive Match Plans for Employees, referred to as SIMPLEs, are retirement
plans for small employers. SIMPLEs provide an incentive to small employers to adopt
IRAs and SEPs
What is the limit on contributions to an IRA for 2008 and 2009?
The following chart depicts the combined contribution limits for traditional and Roth
IRAs. In addition, individuals who have attained the age of
and Termination of Qualified
Describe the business and personal issues that should be considered when making a
qualified plan selection.
Selecting a qualified plan begins with con
Describe the distribution options for pension plans.
When the participant attains the normal retirement age, typically the pension plan distributes his retirement benefits through
Stock Bonus Plans and
Employee Stock Ownership
List the required characteristics of a stock bonus plan.
A stock bonus plan must satisfy the following requirements:
Participants must have pass-through voting rights on
Profit Sharing Plans
Describe the key elements of a profit sharing plan as discussed in Treasury Regulation
Key elements include:
A plan established and maintained by an employer.
Provides for the participati
Explain the mandatory funding requirement and its impact on defined contribution
plans and defined benefit plans.
Prior to the Pension Protection Act of 2006, the mandatory funding requirement se
Describe the historical change from pension plans to profit sharing plans.
Historically, a retirement plan would pay a benefit to a retired employee until his death,
and often after his death unt
List the major factors affecting retirement planning.
The major factors affecting retirement are:
remaining work life expectancy (RWLE),
retirement life expectancy (RLE),
Define skip person.
A natural person two or more generations younger than the transferor is a skip person. A
trust is a skip person if all interests in the trust are held by skip pe
Special Elections &
Why is it important for an estate to have cash?
An estate must cover the taxes, administrative expenses, last medical costs, and funeral
costs. All of these expenses must be paid for
Life Insurance in
List the five most common objectives of using life insurance in an estate plan.
The five most common objectives of using life insurance in an estate plan are as follows:
Protecting the income stre
Explain the theory behind the unlimited marital deduction.
The theory behind the unlimited marital deduction is that a married couple should be
treated as a single economic unit for estate tax purpos
What factors must an individual consider before making a charitable gift?
A donor needs to consider his charitable objectives and the desired timing of the gift, in
addition to the tax consequences of making a cha
Why are trusts used in estate planning?
Trusts are used in estate planning to provide for the management of assets and flexibility
in the operation of the estate plan.
What is a trust?
A trust is a structure that vests le
Life & At Death
Explain how an intra-family sale of property can be an advantageous strategy for reducing an individuals gross estate.
An intra-family sale can reduce an individuals gross estate because the sale of
List six assets included in a decedents gross estate.
2. Stocks and bonds.
4. Retirement accounts.
5. Notes receivable.
7. Other real estate.
8. Household goods.
Explain the Gift and Estate Tax reforms created by EGTRRA 2001.
EGTRRA 2001 eliminated the unified transfer tax system by increasing the applicable
credit amount for transfers at death between 2001 and 2010, while the appl
The Probate Process
Describe the probate process.
The probate process is a legal proceeding that serves to prove the validity of any existing
will, supervise the orderly distribution of the decedents assets to the heirs, and protec
Types of Property
List and define the three major types of property.
Real property - land and buildings;
Tangible property- property that is not realty and may be touched such as cars, clothing, and jewelry; and
List the basic documents used in estate planning.
The basic documents used in estate planning include wills, codicils, side instruction letters, durable powers of attorney for health care or pr
Introduction to Estate
Define estate planning.
Estate planning is the process of the accumulation, management, conservation, and
transfer of wealth considering legal, tax, and personal objectives.
Explain the estate and
Chapter 17 - Futures Markets and Risk Management
FUTURES MARKETS AND RISK MANAGEMENT
This chapter describes the futures markets, trading mechanics involved with futures trading, strategies
and risks associated with futur