Definitions
1) Must have earned income to contribute to this type of IRA. 2) Contributions can be made to this type of IRA at any age regardless of being employed or not.
1) What is a Traditional IRA? 2) Roth - taxes already paid. If person passes away, Gov't already paid
1) Contributions may be tax deductible on this type of IRA.
2) Important question to ask member if the contributions are made between January and April of each year
1) What is a Traditional IRA?
2) Apply to current or prior year contributions? (for tax reporting- Roth OR Traditional)
1) RMD
2) Type of IRA RMD falls under
1) What is Required Minimum Distribution
2) Traditional IRA
RMDs must be taken by age 72 if you were born after June 30, 1949, or the pre-SECURE Act age 70.5 if you were born before July 1, 1949. Those who reached 72 in 2021 will have their first RMD due by April 1, 2022, and will use the older RMD table.
Direct Transfer (in OR out)
What is a check made payable directly to CSE. Member does not touch the money Call Tracie OR Ascensus - for ANY questions
Contributions (deposits) made today and taxed when you withdraw.
What is a Traditional IRA?
Under Age 59 1/2
What is early withdrawal penalty from IRA? (Withdrawal is considered a Normal Withdrawal if older than 59 1/2 - no penalty would be incurred, suggested 10% Federal Withholding tax at time of withdrawal.)
In-House Transfer
What is an IRA transaction WITHIN a CSE IRA account that moves money around within the SAME TYPE of IRA and does not require paperwork? Provide examples
An Individual Retirement Account to which you contribute pre-tax, and which allows your money to grow tax-deferred. When you make withdrawals after age 59½, they're treated as current income.
What is a TRADITIONAL IRA?
SECURE Act
What are Traditional and Roth IRA no longer have age restrictions for contributions (provided that the individual is employed for Traditional IRA contributions)?
1) 10% 2) IRS publications for consumers that explain contributions and distributions to/from IRAs
1) What is Federal Withholding tax? What if a member does not choose to deduct the 10% at the time of distribution? 2) What are Forms 590-A and 590-B?
Rollover Contribution
What is moving retirement savings from an existing retirement or profit sharing plan to an IRA at CSE? (Member may bring funds in by way of a check made payable to them or CSE)
Early withdrawal penalty age for Traditional and Roth IRAs.
What is 59 1/2?
Form 1099-R
What is the IRA Distribution (Withdrawals) tax form that is submitted to the IRS by CSE?
My husband passed away and has an IRA account at CSE.
What is - What documentation is needed to proceed?
To Tracie: Forward copy of Death Certificate and date of death, note member journal
IRA Death Claim Form, Original Death Certificate, pull copy of beneficiary form (scanned or in member folder)
Federal Withholding Tax
What is the amount of Federal WH tax that you would like to have withheld from your IRA distribution?
Required forms January 1 - April 15 of each year
What is Current/Prior Year Contribution Form?
1) Form 5498
2) $6,000/$7,000
1) What is the IRA Contribution (Deposits) tax form that is submitted to the IRS by CSE? Members receive this in May. Where do you find this form on mPowered? 2) What is the contribution limit under age 50/ Contribution limit over age 50 ('catch up' contribution of $1,000)?
Qualified Distribution
What is a withdrawal/distribution from a ROTH IRA?
Member would like to open an IRA CD. They have money in their IRA Traditional Savings account (suffix -14).
What is an In-House Transfer? What paperwork is required to do this?