Small Business
What are the four different plan roles that I401k accounts can have?
Plan Admin, Contact with access to banking, Contact without access to banking, participant
a 65 year old client inherited ira from his mother who passed in 2018, client is trying to satisfy his rmd with a QCD. Can this be processed over the phone or by form?
Neitherrrrrrrr must be 70.5 to do a QCD
If client contributed to VG roth 6k and transferred the account to fidelity and realized they had excess contributions how would they get the earnings/loss calc from us?
LOI
No max and can do it as many times as you want
The account that is created from doing an excess annual additions from an I401k
Suspense
What % of mandatory withholding is applied to in service withdrawals from an I401k?
20%
In what situation would a beneficiary be required to utilize the 5 year rule?
Pre RBD non-qualified beneficiaries
When can you process an excess removal for TA Roth ira on crave?
neverrrrrrrr
If someone mistakenly does a conversion what should you do?
Tell them to talk to tax pro, they can do an excess if they want but we dont know if that will fix the tax liability of a conversion since conversions are final and cannot be undone.
If client contributed 5000 for ER contributions to their simple but wants to change that to EE, how would we accomplish that?
We would not make any changes on our end, since the 5498 for simple and Sep reports all money received for the calendar year and does not break it down between EE and ER there is nothing needed to do on Vg end. As long as client self corrects their records they are good to go.
The Matching method for a SIMPLE IRA ER contribution means that employers must contribute 3% in three of every rolling ____ year period?
5 year
Which life expectancy table would an inherited IRA RMD follow?
Table 1
What is the 1099r distribution code for when someone does an excess removal from trad ira and they are under 59 1/2 and remove the excess in the same year it was contributed.
81
What account types (TA or VBA) can you process a conversion for on crave?
both!
what coding is given to an excess removal that is completed after the deadline and they are over 59 1/2?
Normal Distribution
07- over 59 1/2
List the SBOL call security?
Caller name, Employer Name, Plan Address, Plan ID (or last four of caller SSN)
When is the Required beginning date?
April 1st following the year they turn 72
Which transaction uses LIFO rules when calculating earnings or loss?
Excess Removal
How do we code a roth conversion on our 1099r?
under 59 1/2= 2
over 59 1/2= 7
1. the year plan assets exceed 250,000
2. they are terminating the plan
List the restrictive eligibility requirements for a SEP IRA
at least 21 years old, has worked for the employer during the at least 3 of the 5 years immediately preceding the tax year, has received at least $600 in compensation from the employer in the tax year
What are four requirements listed on the death card comprise a qualified trust?
1. Trust must be irrevocable or become irrevocable upon IRA owner’s death.
2. Trust must be valid under state law.
3. Beneficiaries are identifiable in trust document.
4. Custodian must be provided with a copy of the trust document or a summary list of the trust’s beneficiaries and conditions by October 31 of year following the year of death. (Vanguard currently scans a copy of the trust document when received, but cannot guarantee compliance of qualifying trust documents.)
What are the two examples of a scenario where a client would need to excess remove an RMD
if it was converted or rolled over
If someone has 20,000 pre tax assets in their trad IRA and 5,000 post tax assets in their trad IRA and are looking to do a $6000 conversion, what is 1. the pre-to-post tax ratio and 2. what amount of the conversion would be taxable to the client?
80% taxable or 4,800 taxable
20% non taxable
What is the difference between 5304 and 5305 tax form and which account(s) is it used for?
Sep and Simple
5304- they can hold plan at any institution
5305- they must hold plan at a designated institution