Table of Contents
CHAPTER 1 How Much Do You Need To Retire?1-1
| Mapping Mechanics | 1-1 |
| Pitfalls & Myths | 1-3 |
| Common Pitfalls | 1-3 |
| Popular Retirement Myths | 1-6 |
| Defining Retirement | 1-12 |
| When Do I Want To Retire? | 1-12 |
| What Kind Of Lifestyle Do I Want? | 1-14 |
| Do I Want To Move? | 1-15 |
| Determining Retirement Costs & Income Needs | 1-21 |
| Developing a Plan | 1-26 |
| Savings | 1-31 |
| Assets | 1-35 |
CHAPTER 2 Social Security Benefits & Retirement Planning2-1
| Will Social Security Be There? | 2-1 |
| How Social Security Works | 2-2 |
| Social Security Participants | 2-2 |
| Social Security Benefits | 2-3 |
| Retirement Benefits | 2-3 |
| Direct Deposit | 2-13 |
| Social Security's Payroll Tax or FICA | 2-15 |
| Rates | 2-15 |
| Covered Earnings | 2-15 |
| Multiple Employers | 2-16 |
| Covered Employment | 2-16 |
| Self-Employment | 2-16 |
| Tax after Retirement | 2-18 |
| Social Security as a Retirement Planning Element | 2-18 |
| Total Disability Benefits | 2-19 |
| Family Members | 2-19 |
| HIV & AIDS | 2-20 |
| Children | 2-20 |
| Qualification | 2-20 |
| Survivors Benefits | 2-21 |
| Divorce | 2-22 |
| Medicare | 2-24 |
| Who Is Eligible For Hospital Insurance (Part A)? | 2-24 |
| Who Can Get Medical Insurance (Part B)? | 2-25 |
| Prescription Drug Coverage (Part D) | 2-25 |
| How Do You Get Medicare? | 2-26 |
| What Does Medicare Pay For? | 2-26 |
| What Medicare Does Not Pay For? | 2-26 |
| Medigap Insurance | 2-27 |
CHAPTER 3 Retirement Plans3-1
| Deferred Compensation | 3-1 |
| Qualified Deferred Compensation | 3-1 |
| Basic Requirements of a Qualified Pension Plan | 3-14 |
| Basic Types of Corporate Plans | 3-23 |
| Self-Employed Plans - Keogh | 3-35 |
| Determining the Deduction | 3-40 |
| Individual Plans - IRAs | 3-43 |
| Simplified Employee Pension Plans (SEPs) | 3-73 |
| SIMPLE Plans | 3-75 |
CHAPTER 4 Distributions from Retirement Plans4-1
| Annuity Payments - §72 | 4-2 |
| General Rule - Prior Law | 4-2 |
| Simplified Alternative Rule - Prior Law | 4-4 |
| Mandatory Basis Rule - Current Law | 4-5 |
| Withholding & Estimated Tax | 4-6 |
| Lump-Sum Distributions | 4-6 |
| Qualified Distributions | 4-6 |
| Nonqualified Distributions | 4-7 |
| Treatment Options for LSDs | 4-9 |
| Rollovers | 4-14 |
| Eligible Rollover Distributions | 4-14 |
| 20% Withholding | 4-15 |
| Rollover Period | 4-18 |
| Rollover of Noncash Distributions | 4-21 |
| Qualified Domestic Relations Order Rollover | 4-23 |
| Surviving Spouse Rollover | 4-23 |
| Premature Distributions - 10% Penalty | 4-25 |
| Exemptions | 4-25 |
| Recapture Tax | 4-30 |
| Minimum Distribution Rules | 4-31 |
| Required Beginning Date for Minimum Distributions | 4-33 |
| Minimum Distribution Rules | 4-33 |
| Making Charitable Gifts with Plan Balances | 4-34 |
CHAPTER 5 Nonqualified Plans5-1
| Postponement of Income | 5-1 |
| Advantages | 5-2 |
| Purposes & Benefits | 5-3 |
| Benefit Formula | 5-3 |
| Contractual Arrangement | 5-4 |
| Tax Status | 5-4 |
| Constructive Receipt | 5-6 |
| Economic Benefit | 5-8 |
| Unfunded Bare Contractual Promise Plan - Type I | 5-12 |
| Funded Company Account Plan - Type II | 5-16 |
| Segregated Asset Plan - Type III | 5-20 |
| Tax Consequences | 5-23 |
| Accounting | 5-26 |
| Estate Planning Considerations | 5-27 |
| Withholding, Social Security & IRAs | 5-29 |
CHAPTER 6 Life Insurance, Annuities & Buy-Sell Agreements6-1
| Purpose | 6-1 |
| Tax Overview | 6-3 |
| Income Tax | 6-3 |
| Estate Taxes - §2042 & §2035(a) | 6-6 |
| Gift Taxes | 6-7 |
| Types of Life Insurance | 6-7 |
| Term Insurance | 6-7 |
| Whole Life (Permanent) Insurance | 6-8 |
| Endowment Insurance | 6-8 |
| Universal Life | 6-8 |
| Variable Life | 6-9 |
| Survivor Life | 6-10 |
| Single Premium Whole Life | 6-10 |
| Dividends | 6-10 |
| Life Insurance Trust | 6-13 |
| Considerations | 6-13 |
| Annuities | 6-16 |
| Deferred Annuity | 6-16 |
| Private Annuity | 6-18 |
| Buy-Sell Agreements | 6-21 |
| Definition | 6-21 |
| Entity & Cross-Purchase Agreements | 6-23 |
| Purchase Price & Terms | 6-30 |
| Community Property | 6-31 |
| Professional Corporations | 6-31 |
| S Corporations | 6-32 |
| Sole Shareholder Planning | 6-32 |
CHAPTER 7 Home Sales & Moving Expenses7-1
| Introduction | 7-1 |
| Capital Gains & Qualified Dividends | 7-2 |
| Rates - §1 | 7-2 |
| 28% Rate Group | 7-5 |
| 25% Rate Group - Unrecaptured §1250 Gain | 7-5 |
| 15% (or sometimes 20%) Rate Group - Adjusted Net Capital Gain | 7-6 |
| The Hidden Rate - Net Investment Income Tax - §1411 | 7-6 |
| AMT | 7-7 |
| Netting Capital Gains & Losses | 7-7 |
| Analysis | 7-9 |
| Home Sales - §121 | 7-10 |
| Exclusion Amount | 7-10 |
| Ownership & Use Requirements | 7-14 |
| Two-Year Requirement | 7-21 |
| Remainder Interests | 7-22 |
| 1099-S Reporting | 7-22 |
| Moving Expenses - §217 | 7-24 |
CHAPTER 8 Estate Planning8-1
| Unlimited Marital Deduction | 8-2 |
| Outright To Spouse | 8-2 |
| Marital Deduction Trust - §2056 | 8-3 |
| Qualified Terminable Interest Property (QTIP) Trust | 8-3 |
| Applicable Exclusion Amount | 8-3 |
| Stepped-up Basis - §1014 | 8-5 |
| Basic Estate Planning Goals | 8-5 |
| Primary Dispositive Plans | 8-6 |
| Simple Will | 8-6 |
| Trusts | 8-12 |
| Types of Trusts | 8-13 |
| Living "A-B" Revocable Trust | 8-13 |
| Living "A-B-C" (QTIP) Trust | 8-16 |
| Charitable Trusts | 8-18 |
| Charitable Remainder Trusts | 8-18 |
| Charitable Income Trusts | 8-18 |
| Insurance Trusts | 8-21 |
| Family Documents | 8-23 |
| Living Will | 8-25 |
| Property Agreement & Inventory | 8-25 |
| Durable Power Of Attorney | 8-25 |
| Conservatorship | 8-26 |
| Funeral Arrangements | 8-26 |
| Anatomical Gifts | 8-26 |
| Private Annuity? | 8-26 |
| Advantages to the Transferor | 8-27 |
| Disadvantages to the Transferor | 8-27 |
| Advantages to the Transferee | 8-27 |
| Disadvantages to the Transferee | 8-27 |
| Regulations Restrict Private Annuity Income | 8-27 |
Answers & Explanations8-30
Glossary8-71
Index of Keywords & Phrases8-72
Course Details
Author: Danny Santucci, J.D.
Danny earned his Bachelor of Arts in Political Science from the University of California at Irvine in 1969. He received his Juris Doctorate from Boalt Hall School of Law, University of California at Berkeley in 1972, at which time he began practice as a tax attorney in Southern California.
His legal career was initiated with the business and litigation firm of Edwards, Edwards and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines & Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter and Leanders, in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law and estate planning.
Danny has been an officer and active member in various organizations including the Glendale Bar Association, Century City Bar Association, Orange County and Los Angeles County Bar Associations, California State Bar Association, Toastmasters and Lions Club. He also avidly supports the American Association for the Advancement of Science. He has been admitted to practice before all California and federal courts including the United States Tax Court and the United States Supreme Court.
Serving as a lecturer for the Continuing Education of the Bar of California, Golden Gate University, and numerous state C.P.A. societies, Danny teaches a variety of tax, business and real estate courses. Danny has been in demand all across the country as a speaker for all levels of professional and civic organizations and numerous major seminar circuits. Danny spoke to over 2,000 people per month and traveled more than 150,000 miles annually.
In 2015, he withdrew from the lecture circuit to devote himself to tax research and writing. The author of numerous texts, he is listed in "Who’s Who in Creative Real Estate" and is admitted to the American Exchangor’s Hall of Fame.
Publication/Revision Date: 9/29/2026
Course Exam Questions (online): 120 (multiple-choice)
Program Delivery Method: Self-Study (NASBA QAS Self-Study)
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
| CFP® | Intermediate | None | None |
| EA/OTRP | Overview | None | None |
| ERPA | Overview | None | None |
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
CFP Board Sponsor ID: 1008 — Course ID: 195438
IRS Qualified Sponsor ID: FWWKO
EA/OTRP Course ID: FWKKO-T-00801-26-S
ERPA Course ID: FWKKO-Q-00802-26-S
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
Chapter 1: How Much Do You Need To Retire?
Major Topics
- Mapping mechanics
- Common pitfalls
- Popular retirement myths
- Defining retirement
- Developing a plan
- Savings
- Assets
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the importance of personal retirement maps to suit client objectives & lifestyles and summarize the basic guidelines of retirement planning, including common pitfalls and misconceptions of retirement.
- Determine retirement using the major levels of retirement and key questions that have financial and personal ramifications.
- Identify retirement costs and income needs of clients based on their current budget, recognize tax savings strategies, and identify guidelines when purchasing investment assets.
After studying the materials in Chapter 1, answer exam questions 1 to 21.
Chapter 2: Social Security Benefits & Retirement Planning
Major Topics
- Will Social Security be there?
- How Social Security works
- Social Security participants
- Social Security benefits
- Retirement benefits
- Direct deposit
- Social Security tax
- Total disability benefits
- Survivors' benefits
- Medicare
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Determine how Social Security funds are assessed and then paid, specify the system's mechanics, and select qualified Social Security participants, determining their benefit eligibility.
- Identify the requirements to receive Social Security retirement benefits, and determine clients' retirement benefits following a multi-step calculation process.
- Recognize Social Security taxes, their tax rates, and covered earnings, allowing better retirement planning.
- Specify the eligibility requirements of Social Security disability benefits and survivors' benefits, and determine what constitutes Medicare Part A and Medicare Part B, recognizing their qualifications.
After studying the materials in Chapter 2, answer exam questions 22 to 36.
Chapter 3: Retirement Plans
Major Topics
- Qualified deferred compensation
- Basic requirements of a qualified pension plan
- Basic types of corporate plans
- Types of defined contribution plans
- Self-employed plans - Keogh
- Distribution & settlement options of IRAs
- Tax-free rollovers for IRAs
- Roth IRAs
- Simplified employee pension plans (SEPs)
- SIMPLE plans
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify nonqualified and qualified deferred compensation plans, specifying their benefits and contribution limits and recognize the current and deferred advantages and disadvantages of corporate plans, including fiduciary responsibilities and prohibited transactions.
- Specify the requirements of the basic forms of qualified pension plans.
- Determine the differences between defined contribution and defined benefit retirement plans and specify several types of defined contribution plans, recognizing their impact on retirement benefits.
- Recognize self-employed plans from qualified plans for other business types and owners.
- Identify the requirements of IRAs, SEPs, and SIMPLEs and tax-free Roth IRA distributions, specifying strategies to maximize plan benefits.
After studying the materials in Chapter 3, answer exam questions 37 to 56.
Chapter 4: Distributions from Retirement Plans
Major Topics
- Prior law for annuity payments
- Mandatory basis rule for annuity payments
- Nonqualifying lump-sum distributions
- Treatment options for lump-sum distributions
- Eligible rollover distributions
- 20% withholding
- Rollover period
- Premature distributions
- Minimum distribution rules
- Making charitable gifts with plan balances
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify popular ways to receive distributions from a retirement plan or an IRA, specify types of annuities citing their effect on how and when participants receive payments, and determine the tax on annuity payments under the general rule or the simplified general rule.
- Determine what constitutes a lump-sum distribution permitting clients to receive special tax treatment on such distributions.
- Recognize the key components of rollovers that can be used to reinvest cash or other assets without including the amount in income.
- Specify the tax consequences of taking premature distributions, stating how to avoid the 10% penalty.
- Identify the minimum distribution rules and ways to avoid the 50% penalty associated with either taking smaller distributions than required or with taking distributions after the required beginning date for minimum distributions.
After studying the materials in Chapter 4, answer exam questions 57 to 68.
Chapter 5: Nonqualified Plans
Major Topics
- Postponement of income
- Purposes & benefits
- Constructive receipt
- Economic benefit
- Funded company account plan
- Segregated asset plan
- Tax consequences
- Accounting
- Estate planning considerations
- Withholding, Social Security & IRAs
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the postponement of income with a nonqualified plan by:
- Identifying nonqualified plan advantages, including ways to design the plans and specifying the IRS's position on such arrangements stating the impact of constructive receipt and economic benefit concepts;
- Specifying deferred compensation patterns set forth in R.R. 60-31, citing the taxability of each; and
- Determining unfunded and funded plans, stating the use of company assets or bookkeeping accounts to avoid employee taxation.
- Identify the setup of a segregated asset plan where the account is not subject to the claims of the employer's creditors and still avoids employee taxation and specify the tax consequences of establishing a nonqualified plan.
After studying the materials in Chapter 5, answer the exam questions 69 to 77.
Chapter 6: Life Insurance, Annuities & Buy-sell Agreement
Major Topics
- Taxes
- Types of life insurance
- Life insurance trusts
- Annuities
- Buy-sell agreements
- Purchase price & terms
- Community property
- Professional corporations
- S corporations
- Sole shareholder planning
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Specify reasons to purchase life insurance and the parties with rights in a life insurance policy.
- Recognize the tax treatment of life insurance proceeds by:
- Identifying the tax treatment of premiums and lifetime benefits, stating several exceptions to the transfer for value rule and specifying variables that influence whether life insurance is taxable for federal estate tax purposes; and
- Determining the gift tax associated with transfers of life insurance policies.
- Identify the pros and cons of types of life insurance policies to help clients choose a suitable policy.
- Specify the reasons for using an irrevocable life insurance trust in an estate plan, identifying trust considerations and the differences between deferred and private annuities.
- Determine what constitutes entity purchase and cross-purchase buy-sell agreements, recognizing tax and legal advantages.
After studying the materials in Chapter 6, answer the exam questions 78 to 93.
Chapter 7: Home Sales & Moving Expenses
Major Topics
- Capital gains rates
- Rate groups
- AMT
- Home sales under §121
- Special rules for ownership & use requirements
- Prorata exception
- 1099-S reporting
- Distance & time tests for moving expenses
- Deductible moving expenses
- Reporting moving expenses
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Determine the relationship between home sales and the capital gains rates and specify the rate “baskets” created by the capital gain provisions, stating the tax treatment of capital assets in each category.
- Recognize the key elements and application of the §121 home sale exclusion and identify safe harbor regulations associated with the home sale exclusion.
- Identify when and if a taxpayer can deduct moving expenses and exclude moving expense reimbursements.
After studying the materials in Chapter 7, answer the exam questions 94 to 103.
Chapter 8: Estate Planning
Major Topics
- Unlimited marital deduction
- Applicable exclusion amount
- Stepped-up basis
- Basic estate planning goals
- Simple will
- Types of trusts
- Charitable trusts
- Insurance trusts
- Family documents
- Private annuities
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Determine what constitutes estate planning for clients by:
- Identifying elements of estate tax planning that have remained unchanged by recent legislation;
- Recognizing the unlimited marital deduction and its effect on the gross estate of the value of property; and
- Specifying the applicable exclusion amounts for various years of death.
- Identify the mechanics of "stepped-up basis" and probate for estate tax purposes. Recognize the danger of simple wills for large estates.
- Specify basic estate planning goals, and recognize the benefits and drawbacks of the primary dispositive plans.
- Identify various types of estate trusts and family documents that every taxpayer should consider, and determine the advantages and disadvantages of the former private annuity format.
After studying the materials in Chapter 8, answer the exam questions 104 to 120.
