Traditional IRA
Generally pre-tax contributions, must have earned income to contribute, and require an RMD by 73
Traditional IRA
True or False? & Why?
Required RMD
Pre-Tax funds
No annual contribution limit
Can't make contributions after 73
False.
Roth IRA's have no:
RMD
Post-Tax funds generally
CAN make contributions after 73 as long as they meet IRS requirements
I need to update my TWE's. What FORMS will I be processing to update this?
Tax Withholding Election Form
IRA Distribution from
I use this form to help distribute a check for my child to their school to pay for tuition. What am I?
ESA Distribution Form
I am the founder of Charles Schwab.
Charles R. Schwab
Correct! As long as the client has earned income, they are eligible to make a contribution. (Minors must open a Custodial IRA)
What are the two additional rules Roth IRA's follow to make a contribution?
Tax filing status and MAGI are two additional limitations to make a ROTH contribution
I can always locate blank forms using the specific resource. What is the resource called and how do I get there?
Knowledge Center (KC)>> Forms Library Retail
I am 25 and just graduated school with a remaining balance of $2,500 in my ESA. Can I request those funds be passed on to my first cousin?
Per the IRS, yes. A First cousin is an eligible family member to transfer assets to.
"Own your own tomorrow"
If a client is age 49.5 they can contribute an additional $1,000 as "catch-up" contributions.
I am over the age of 59.5 and looking to take a distribution from my Roth IRA. What code is going to be use?
Code 7- Normal because client is over 59.5
These forms are used generally for what purpose?
QCD form (Qualified Charitable Distribution)
IRA Distribution form
LOA (Requires wet signature & date)
Transfer of Assets Out - Partial Account or Charitable Gift Transfers
To process QCD's/ Qualified Charitable Distributions
A client is requesting a distribution from their ESA. What code will I use to issue a check distribution from the account?
I will use code M.
I am the current CEO for Charles Schwab.
Rick Wurster
A client can contribute to the prior year as long as it is a posted deposit by April 20th.
False. The client would need to ensure the contribution for prior year was deposited by the tax filing deadline for their state. Generally, this is April 15th
I am under 59.5 and converting $10,000 of my Traditional IRA to my ROTH IRA. What code is going to be used when processing my journal request?
Code 2-Conversion because I am under 59.5
True or False?
You can OPT a client out of TWE (Tax Withholding Election) without needing a form.
False. To OPT a client OUT of TWE we require it to be written with signature & date
Schwab determines if a distribution from an ESA is a qualifying expense. True or False?
This is false. Schwab is the Custodian of the ESA and will not determine qualifying vs non-qualifying distributions. Client can speak with a tax professional as needed or review the ESA Publication
That was when Charles Schwab Corp was founded.
I file this form when I make non-deductible contributions to a Traditional IRA with income tax return for the year the non-deductible contribution is allocated.
Form 8606
Conversions can be made until the tax filing deadline which is usually April 15th.
False. Unlike contributions conversion are coded in the calendar year they take place.
A client can't request to allocate a conversion for the prior year regardless of the tax deadline.
I am required by certain States to OPT OUT of TWE (Tax Withholding Election). What am I?
W4-R form
I am on the IRS website that can help educate a client on their ESA including a worksheet to assist tax-payers in determining taxability of their ESA.
IRS Publication 970
What was the company Charles Schwab acquired and merged with?
TD Ameritrade