Level 1 - Knowledge of Topics Relevant to Retirement Planning and
Special Issues of Senior Citizens (Recommended 16 CPE hours total)
DEMOGRAPHICS & OVERVIEW (Recommended ½ to 1 hour)
Characteristics & expectations of the Baby Boomer generation
Typical income & expense considerations for American retirees
Special income tax benefits for senior citizens
Tax dilemmas for retirees
Sources of information
SOCIAL SECURITY (recommended 1 1/2 to 3 hours)
Retirement benefits – eligibility, options, processes
Strategies for maximizing benefits prior to retirement
Using the optional method for computing SE tax
Strategies for maximizing benefits by choosing retirement age
Early retirement and the associated limitations and reductions
Penalties for earned income after retirement
Delayed retirement credits
Strategies for minimizing taxes on Social Security retirement benefits
Disability benefits – eligibility, options, processes
Strategies to minimize taxes on disability benefits
Survivors’ benefits – eligibility, options, processes
Special situations:
Rules for divorced and widowed spouses
Death of a beneficiary
Using the Social Security Administration website
MEDICARE (recommended 1 1/2 to 2 hours)
Medicare Part A, hospital insurance – eligibility, options, & processes
Medicare Part B, medical insurance – eligibility, options, & processes
Medicare Part D, prescription drug coverage – eligibility, options, & processes
Advantages and disadvantages to consider when choosing Medicare options
Using the Medicare Handbook published by the Social Security Administration
MEDICAID (recommended 1 to 2 hours)
Qualifying for Medicaid benefits –
Federal regulations
State regulations -
Income cap states
Spend-down states
Pre-application planning opportunities -
Reducing assets by gifting
Medicaid trusts (basic information)
Pitfalls to avoid
Determining eligibility for Medicaid benefits -
Exempt assets
Non-exempt assets
Income limits
Protections for the non-institutionalized spouse
Medicaid estate recovery
VETERAN’S BENEFITS – (recommended ½ to 1 hour)
Benefits available to veterans
How eligibility for benefits is determined
Special tax benefits for veterans
Sources of information
HEALTH CARE & LONG-TERM CARE OPTIONS (recommended 1 to 2 hours)
Medigap insurance & comparison of Medigap standard plans
Health Savings Accounts (HSAs) & Medical Savings Accounts (MSAs)
Long-term care insurance –
Making the decision to buy long term care insurance – cost vs. benefit
Eligibility for long term care benefits (ADLs, etc)
Home health care
Income tax deductions for medical expenses & long-term care
Alternative funding sources for medical costs -
Reverse mortgages
Accelerated death benefits from life insurance policies
Annuitization of life insurance
Borrowing against life insurance
SPECIAL CONSIDERATIONS FOR THE SELF-EMPLOYED (recommended 2 to 3 hours)
Self-employment tax issues -
Tools for reducing self-employment taxes
Tools for increasing self-employment taxes
Advantages & disadvantages for minimizing or maximizing SE taxes
Choosing the most advantageous business entities (basic comparisons) –
When the goal is to maximize personal retirement income
When the goal is to streamline a business succession plan
When the goal is to minimize estate taxes
When the goal is to share income with family members
Developing a plan for business succession (basic knowledge)
Using life insurance as part of a succession plan
RETIREMENT PLANS (recommended 3 to 4 ½ hours)
Choosing a retirement plan –
Types of plans available and their advantages & disadvantages
Special considerations in choosing a plan when close to retirement age
Beneficiary designations for the retirement plan
Funding the retirement plan -
Estimating annual income needed in retirement
Identifying sources and projecting annual retirement income
Calculating the estimated annual contribution needed to provide adequate
retirement income
Calculating the maximum contribution allowed
Distributions from a retirement plan -
Premature distributions
Applicable penalties
Exceptions to the penalties
Taxation of periodic payments when taking early retirement
Lump-sum distributions
Advantages & disadvantages of choosing a lump-sum option
Rollovers from one plan to another – rules & restrictions
Minimum required distribution rules -
Calculating the required distribution
Required beginning date
PERSONAL RESIDENCE ISSUES (recommended 1 to 1 ½ hours)
Maximizing the home sale income tax exclusion
Protecting the home for the benefit of a surviving or non-institutionalized spouse
The vacation home
Sale of a mixed-use residence
Tax treatment of converted property
Reverse mortgages |