Module 1

  1. The Changing Face of Retirement
    • Increased longevity and reduced morbidity
    • Implications of changing demographics
    • *Extended retirement period to fund
    • *Health care costs
    • *Long-term care
  2. Retirement Program Classifications: Fully taxable
    • Savings
    • CDs
    • Investments
    • Nonqualified deferred compensation
  3. Retirement Program Classifications: Tax favored
    • IRA
    • SEP
    • SARSEP
    • 403(b) (TSA) plans
    • 457 plans
  4. Retirement Program Classifications: Partially tax favored
    • Annuities
    • Life insurance
    • Roth IRA
    • Social Security and Medicare
    • Nondeductible IRA
    • After-tax qualified plan contributions
  5. Retirement Program Classifications: Qualified plans
    • Defined benefit plans
    • Defined contribution pension plans
    • Defined contribution profit sharing plans
    • SIMPLE 401(k)
  6. Groups Excluded from Social Security
    • •Federal employees hired prior to 1984
    • •Railroad employees covered under Railroad Retirement System
    • •Business owners receiving only dividends for services performed
    • •Children under age 18 employed by a parent in an unincorporated business
    • •State and local government groups covered by a retirement system where employer has elected to exclude Social Security coverage
    • •Employees of religious organizations opting out for religious reasons
  7. Income Subject to Social Security (FICA) Tax
    • •Wages, salary, tips, etc.
    • •Sick pay during first six months
    • •Employer-paid group term life premiums up to $50,000 death benefit
    • •Employee salary reduction amounts to 401(k) 403(b), 457
    • •Nonqualified deferred comp deferrals when no longer subject to substantial risk of forfeiture
    • •Vacation or severance pay
    • •Nonqualified stock options
  8. Income Exempt From Social Security (FICA) Tax
    • •Sick pay after first six months
    • •Employer paid term life premiums over $50,000 death benefit
    • •Payments from employer plan for medical or hospital expenses
    • •Pretax deferrals to cafeteria plan and benefits paid from the plan
    • •Employer contributions to qualified plans and benefits paid from the plan
    • •Nonqualified deferred comp deferrals subject to substantial risk of forfeiture
  9. Key Dates in History of Social Security
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Card Set
Module 1
Retirement Planning & Employee Benefits