Description

How much can clients contribute to a Roth IRA, Roth 401(k), Roth SEP IRA, or Roth SIMPLE IRA? When do enhanced (super) catch-up contributions apply, and when must those catch-up contributions be made on a Roth basis? How does a Roth distribution qualify as tax-free? How did SECURE Act 1.0 and SECURE Act 2.0 fundamentally change Roth funding and distribution rules?

These are among the core Roth questions advisors must be able to answer with confidence. As Roth accounts continue to play an increasingly central role in retirement savings strategies — and as contribution rules become more layered and complex — Roth proficiency is no longer optional. In addition, new rules governing age-based enhanced catch-up contributions and the Roth mandate for certain higher-income participants have added a new level of coordination between tax planning, payroll, and retirement plan design.

In this course, Denise Appleby simplifies the critical rules that govern Roth funding and Roth distributions across Roth IRAs, Roth 401(k)s, and related employer plans. Emphasis is placed on understanding how the rules interact, where advisors commonly make mistakes, and how recent legislative changes affect real-world planning.

Instructor: Denise Appleby, MJ, APA, CISP, CRPS, CRC

Target Audience

Financial advisors, tax professionals, and other practitioners who advise clients on Roth IRAs and employer-sponsored retirement plans

Course Objectives

Explain the eligibility requirements for funding Roth IRAs and Roth employer plan accounts

Distinguish between regular contributions, catch-up contributions, and enhanced catch-up contributions

Identify when catch-up contributions must be made on a Roth basis under the Roth mandate

Describe the tax consequences of rolling employer plan assets into Roth IRAs

Apply the rules that determine whether a Roth distribution is tax-free

Determine when Roth ordering rules apply and how they affect taxation and penalties

Subjects

Funding options for Roth accounts

Roth IRA contribution eligibility and income limits

Enhanced catch-up contributions and age-based limits

The Roth catch-up mandate for employer plans

Roth 401(k) contribution rules, including catch-ups

Roth SEP and Roth SIMPLE IRAs

529 plan rollovers to Roth IRAs

Backdoor Roth strategies and pro-rata considerations

The tax impact of rolling a 401(k) to a Roth IRA

Who can start the Roth IRA 5-year clock?

The 5-year rules for Roth IRAs and Roth 401(k)s

Direct and indirect Roth conversions

Direct and indirect rollovers from Roth 401(k) plans

Ordering rules for Roth IRA distributions

FIFO treatment and when it applies

The risk of recapturing the 10% early distribution penalty

Case studies and practical cheat sheets to reinforce key concepts

Prerequisites

A basic understanding of IRA funding rules and employer plan rollover rules