Table of Contents
Introduction1
| Popular Retirement Myths | 1 |
| Plan For 10 to 15 Retirement Years | 1 |
| Stay With One Company to Retire With the Best Benefits | 2 |
| Preserve Capital | 2 |
| Housing Costs Are Less | 2 |
| Just the Spouse and Me | 2 |
| Social Security Will Gap Any Savings or Pension Benefits Shortfall | 2 |
| Company Insurance & Medicare Will Cover Medical Bills | 3 |
| Retirees End Up In a Nursing Home | 3 |
| Defining Retirement | 3 |
| When Do I Want To Retire? | 4 |
| What Kind Of Lifestyle Do I Want? | 5 |
| Do I Want To Move? | 6 |
Determining Retirement Costs & Income Needs9
Savings11
Assets15
| Stay Liquid - Be Able To Get Your Money Back | 15 |
| Grow - Make Money on Your Money | 15 |
| Shelter - Get Tax Benefits | 15 |
| Build - Don't Spend Your Benefits | 16 |
| Avoid Linking - Each Investment Must Stand On Its Own | 16 |
| Analyze - Investigate the Investment | 16 |
Social Security16
| Qualification | 16 |
| Calculation | 17 |
| Average Indexed Monthly Earnings (AIME) | 17 |
| Primary Insurance Amount (PIA) | 18 |
| Cost of Living Adjustment Using Dollar Bend Points | 18 |
| Adjustment for Retirement Date | 18 |
| Early Retirement | 19 |
| Effect of Late Retirement | 20 |
| Social Security's Payroll Tax or FICA - §3111 & §3121 | 20 |
| Rates | 21 |
| Covered Earnings | 21 |
| Multiple Employers | 21 |
| Covered Employment | 22 |
| Self-Employment | 22 |
| Total Disability Benefits | 22 |
| Family Members | 22 |
| HIV & AIDS | 23 |
| Children | 23 |
| Qualification | 23 |
| Survivors Benefits | 24 |
| Divorce | 25 |
| Medicare | 25 |
| Who Is Eligible For Hospital Insurance (Part A)? | 25 |
| Who Can Get Medical Insurance (Part B)? | 26 |
| Prescription Drug Coverage (Part D) | 26 |
| How Do You Get Medicare? | 26 |
| What Does Medicare Pay For? | 27 |
| What Medicare Does Not Pay For? | 27 |
| Medigap Insurance | 27 |
Retirement Plans28
| Sources of Retirement Income | 28 |
| Qualified Corporate Programs | 28 |
| Defined Contribution Plans | 29 |
| Profit-Sharing Plan | 29 |
| Money Purchase Pension Plan | 29 |
| Stock Bonus Plan | 29 |
| Employee Stock Ownership Plan | 29 |
| 401(k) Plan | 29 |
| Defined Benefit | 30 |
| Defined Benefit Pension | 30 |
| Annuity Plan | 30 |
| SIMPLE Plans | 30 |
| Self-Employed Plans | 30 |
| Individual Retirement Accounts | 32 |
| Penalty-Free Withdrawals | 32 |
| Roth IRA - §408A | 33 |
| Tax-Deferred Annuities | 33 |
| Mechanics | 33 |
| Simplified Employee Pension (SEP) Plan | 34 |
| Investment Assets | 34 |
| Ultimate Question | 34 |
| Participant Loan Regulations | 35 |
| Additional Loan Requirements | 35 |
| Distributions from Retirement Plans | 38 |
| Annuity Payments - §72 | 38 |
| Mandatory Basis Rule | 38 |
| Annuity Benefits Paid Over Two Lives | 39 |
| Withholding & Estimated Tax | 39 |
| Lump-Sum Distributions | 40 |
| Employer Securities - Net Unrealized Appreciation (NUA) | 40 |
| Capital Gain Treatment | 41 |
| Rollovers | 41 |
| Eligible Rollover Distributions | 42 |
| 20% Withholding | 42 |
| Exceptions | 42 |
| Direct Rollover | 43 |
| Rollover Period | 43 |
| Annual Usage | 43 |
| Qualified Domestic Relations Order Rollover | 44 |
| Premature Distributions - 10% Penalty | 44 |
| Exemptions | 44 |
| Required Distributions | 45 |
| Required Beginning Date for Minimum Distributions | 46 |
| Minimum Distribution Rules | 46 |
| Nonqualified Deferred Compensation | 47 |
| Contractual Arrangement | 48 |
| Tax Status | 48 |
| Unfunded Bare Contractual Promise Plan - Type I | 48 |
| Funded Company Account Plan - Type II | 48 |
| Segregated Asset Plan - Type III | 49 |
| Life Insurance | 49 |
| Income Tax | 49 |
| Estate Taxes | 50 |
| Types of Life Insurance | 50 |
| Term Insurance | 50 |
| Whole Life (Permanent) Insurance | 50 |
| Life Insurance Trust | 50 |
| Estate Planning | 51 |
| Simple Will | 51 |
| Applicable Exclusion | 51 |
| Portability – Deceased Spousal Unused Exclusion Amount | 51 |
| Danger for Larger Estates | 52 |
| Probate | 52 |
| Living "A-B" Revocable Trust | 52 |
| Living "A-B-C" (QTIP) Trust | 55 |
| Impact of Spousal Portability on Trust B under TUIRJCA | 55 |
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: May 27, 2026
Course Exam Questions (online): 15 (multiple-choice)
Program Delivery Method: 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® | Overview | None | None |
| EA/OTRP | Overview | None | None |
| ERPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
CFP Board Sponsor ID: 1008 — Course ID: 350079
IRS Qualified Sponsor ID: FWKKO
EA/OTRP Course ID: FWKK0-T-00776-26-S
ERPA Course ID: FWKKO-Q-00777-26-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
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify planning guidelines for retirement recognizing timing and location factors.
- Determine retirement costs and income needs based on their current income, select tax savings strategies, and identify investment assets to attain financial independence.
- Recall the qualifications for Social Security retirement & disability benefits and specify adjustments to retirement benefits.
- Identify basic types of qualified corporate plans and other sources of retirement income such as SIMPLE and stock ownership plans.
- Determine the difference between annuity payments and lump-sum distributions, specify key components of rollovers, premature distributions & required distributions, and identify nonqualified deferred compensation.
- Cite the benefits, uses, and types of life insurance, and specify how three basic estate planning tools can be incorporated into tax practice.
