Inherited Accounts - Secure Act 2.0
A sibling who inherits an IRA and is less than 10 years younger than the decedent qualifies as this
What is an “eligible designated beneficiary?”
Community property states allow this unique adjustment in which both halves of marital property receive a full basis adjustment at the first spouse’s death, often called this
What is a double step-up in basis?
If a taxpayer sells stock at a loss and repurchases substantially identical securities within 30 days, this IRS rule disallows the loss.
What is the wash-sale rule?
The price at which an option holder can buy or sell the underlying security is called this
What is the strike price (or exercise price)?
The month of the year that has the most team member birthdays
What is November? (5 birthdays)
Non-eligible beneficiaries who inherited from someone dying after their RMD required beginning date must take annual RMDs during the 10-year window because of this requirement.
What is the “At least as rapidly rule"?
Or “maximum withdrawal duration rule?” (similar verbiage will be accepted “10-year rule also accepted”)
Roth IRAs are not subject to RMD rules unless it is titled as this type of ROTH IRA
What is inherited ROTH IRA?
This type of trust can be used to spread out recognition of capital gains while providing income to a donor, with the remainder passing to charity
What is a Charitable Remainder Trust (CRT)?
The sensitivity of an option’s price to changes in the underlying stock’s price is measured by this Greek letter
What is delta?
The newest team member that lives outside of California
Who is Kade? (Virginia)
The penalty for failing to take a required distribution from an inherited IRA was reduced to this percentage, provided the error is corrected in a timely manner.
What is 25%, reduced to 10% if corrected?
Assets that do not qualify for a step-up in basis such as retirement accounts is formally known as IRD which stands for this
What is Income in Respect of a Decedent?
The maximum federal long-term capital gains rate most taxpayers face is 20%, but an additional 3.8% surtax can apply for high-income earners also known as this
What is the Net Investment Income Tax of 3.8%
This strategy involves selling naked calls and exposes the trader to unlimited risk.
What is a naked call write?
Advisor causing the most (fictional) office drama
Who is Sergey?
When a non-spouse inherits a deferred non-qualified annuity and chooses a lump sum, the portion attributable to gains is taxed under this method.
What is LIFO (last in, first out)?
Most stock when inherited in given a step-up in basis except for stock that was previously part of this unique employee stock strategy
What is Net Unrealized Appreciation?
If appreciated property is gifted during life rather than inherited, the donee generally receives this type of basis.
What is carryover basis (or transferred basis)?
Double Jeopardy
By simultaneously purchasing a put and writing a call against a stock position, an investor creates this type of hedging strategy
What is a collar strategy?
King of the LAPP Kingdom
Who is Argin?
Unlike inherited IRAs, non-qualified annuities generally avoid the 10-year depletion rule if this payout method was irrevocably elected by the original owner prior to death
What is life annuitization?
If appreciated assets are inherited but decline in value before the estate tax return filing date, executors may elect this valuation method to reduce estate taxes
What is the alternate valuation date (six months after death)?
This special exclusion allows a single taxpayer to exclude up to $250,000 of gain ($500,000 if married filing jointly) on the sale of a primary residence, provided they meet this ownership and use test.
What is the Section 121 exclusion (two of the last five years ownership and use)?
This strategy profits from volatility by buying both a call and a put at the same strike and expiration
What is a long Straddle?
The book selected for September by the LAPP Page Turners
What is Ender’s Game?