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Net Unrealized Appreciation (NUA)
A client retires in 2026 and takes a lump-sum distribution of employer stock from her qualified plan. The stock has a cost basis of $200,000 and a fair market value of $750,000 at distribution. If she elects Net Unrealized Appreciation (NUA) treatment, how will the $550,000 of appreciation be taxed? As ordinary income in the…
The Growing CFP® Workforce: Why Expansion Raises the Bar — Not Lowers It
Good to Know The number of CFP® professionals continues to reach record levels. At first glance, that sounds like simple industry growth. More certificants. More awareness. More credibility. But growth at this scale raises a more important question: Does expansion dilute the designation – or does it increase its competitive standard? The data suggests the…
Unused Premium
Course: Insurance PlanningLesson 8: Gift and Estate Valuation Student Question: Could you please clarify for me what the unused premium would be in term life insurance? I don’t quite understand how you could not use the premium. Thanks. Instructor Response: Hi Certainly. A lot of different terms in insurance, to be sure. Assume you pay…
Estate Tax and Applicable Credit
In 2026, Thomas dies with a taxable estate of $18,000,000. He made no prior taxable gifts. The Basic Exclusion Amount (BEA) in 2026 is $15,000,000 and the applicable credit amount is $5,945,800. What portion of Thomas’s estate will be subject to federal estate tax? $0 $3,000,000 $12,054,200 $18,000,000 CLICK TO REVEAL ANSWER Expand B is…
Roth Conversions in a Stable Rate Environment: Why the Real Decision Is About Control, Not Rates
Good to Know The Roth conversion conversation is often framed around one question: “Are tax rates going up or down?” That framing is incomplete. In a stable or moderating rate environment, the strategic value of Roth conversions is less about predicting Congress and more about controlling future planning variables. The Misconception: It’s About Today’s Marginal…
Double Taxation on Medicare and Social Security?
Course: Income Tax PlanningLesson 7: Arriving at Adjusted Gross Income Student Question: Am I correct that this looks like paying taxes over taxes by first adding the 2.9% for Medicare taxes, and then paying Social Security tax over that? “3. Calculate self-employment tax: Instructor Response: Hi This is a really common point of confusion, so…
Earnings Test Calculation
In 2026, Maria, age 63, begins receiving Social Security retirement benefits. She earns $50,000 from employment during the year. The 2026 earnings limit for individuals under full retirement age is $24,480. Approximately how much of Maria’s Social Security benefits will be withheld due to the earnings test? $0 $12,760 $12,240 $25,520 CLICK TO REVEAL ANSWER Expand…
CFP Board Enforcement Trends: What the Discipline Data Actually Signals
CFP® Board Updates Most professionals read CFP Board disciplinary announcements the same way: quickly, casually, and with relief that it wasn’t them. That’s a mistake. Enforcement data is not just reputational housekeeping for the CFP Board. It is a signal. And when you read it closely, it tells you where professional risk is shifting –…
Irrevocable Non-Grantor Trust Clarification
Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: I wanted to make sure I understand this correctly. Irrevocable non grantor tax is on the trust. If it distributes the income, then the tax is on the beneficiaries. The only case in which an Irrevocable non grantor trust doesn’t distribute the entire income is…