Because the typical CFP program spans an 18-month or more period (before a student is finished with the full curriculum), a common question that many students ask is this: “Why should I take a tax, retirement, or estate tax course with 2013 information if I will sit for the exam in 2014 and use 2014 numbers?”
This is a trap! Students need to learn and understand all the issues and principles relating to the courses, regardless of the tax year. When a student understands that the Roth IRA allowable contribution phase-out for joint filers is indexed for inflation, it is easy to then apply the rules from one year to the next after the index amounts change. For example, the 2012 AGI levels of $173,00 – $183,000 were increased to $178,000 – $188,000 for 2013 joint filers.
I recommend resigning yourself to the unfortunate fact that tax rules and allowable amounts are revised annually, at a minimum, and that these constant changes are an integral part of financial planning.
Posted by Boston Institute of Finance
Bryant University Financial Planning Education Blog 