RMD
Tell me the 2 tax quals that do NOT have an RMD obligation
Roth IRA and Non-Qualified
Basis - the non-taxable portion
Earnings - the taxable portion
This is a feature on certain products that can help or hurt the owner if they take a WD over the FWA or fully surrender during their surrender schedule. This number can change every day
Market Value Adjustment (MVA)
Fixed statements generate quarterly
TRUE
When do owners have to take their RMD by each year?
December 31st
What is the default federal tax withholding for an IRA or a NQ?
10%
This refers to policies that earn spit or dual interest rates.
Two-Tiered
We ALWAYS mail quarterly statements
FALSE
If it's an owners first year that an RMD is due, when do they have a grace period until?
April 1
What is a TPA's role?
To review and approve transaction requests for TSA's
This refers to a two-tired policy when there AV and SV earn the same rate, but had a charge taken when policy was issued causing the values to be different
Contingent Load
You will find every statement for the policy in PEGA
FALSE - not always, PEGA only holds 80
How many charities can an IRA give to at one time?
5 at a time. If they want to give to more, they would need to fill out another form for 5 more!
What is MANDATORY tax withholding for a TSA distribution to the owner that is not for RMD, hardship or a systematic payment?
20%
Multiple NQ policies
Opened in the same year
Opened with the same company
Opened with the same ownership
Serial Contract Rule (SCR)
This type of policy earns a flat rate that the company determines is a fixed annuity
TRUE
If an RMD is due in the SAME YEAR that a policy is issued, can we trust our system calculation for what the RMD will be?
NO! We would need the owner to either:
Verbally tell us to use the premium amount to calculate the amount
Send us a stmt showing the prior 12/31 value to base it off of
Fill in the box on the form telling us the prior 12/31 value
What tax qual allows for ownership changes?
Non-qualified
Pro-Rata
Fixed policies are risky and the owner can lose money
FALSE