Wages, salaries, tips, bonuses, commissions, professinal fees and combat pay
Earned Income
What is the regular contribution limit?
2024 = $7000
What does RMD stand for?
Required Minimum Distribution
A contribution to what type of IRA is post tax?
Roth IRA
Who is the trustee or custodian of an IRA?
The financial institution
Rental income, interest, royalties, taxable alimony, unemployment compensation, disability pay, child support, social security.
Not Earned Income
What is the catch-up contribution limit?
2023 - $7500
2024 - $8000
What is the RMD age?
73
A contribution to this type of IRA is pre-tax?
Traditional IRA
Does Community First collect the early withdrawal penalty on distributions?
No - it will be assessed when member files their tzx return
Have first consideration in receiving IRA assets upon the owner's death
Primary Beneficiaries
Who sets the contribution limits?
IRS
What is the RMD penalty if any portion of the RMD is not taken by the deadline?
25% or may be reduced to 10% if paid within 2 years
What are benefits of opening an IRA?
Tax deferred growth and possible tax deductions
What is the 401K match at Community First?
50% additional 2%
Receive the assets only if no primary beneficiaries survive the IRA owner, or all of the primary beneficiaries choose not to receive the assets
Contingent beneficiaries
What is the deadline for a contribution for 2023?
April 15th of 2024
What is the early withdrawal penalty and at what age is it assessed?
10% if not 59 1/2
What are 3 forms of payment for distributions?
Cash, check or internal transfer
What is the recommended minimum 401K dedection election to take advantage of the full company match?
5% = 9%
Deposit must be made within this many days of the date the IRA owner receives the assets to be rolled over.
60 calendar days
In order to be eligible to contribute to a Roth IRA, an individuals income must not exceed this?
What is MAGI - Modified Adjusted Gross Income
Single - $153,000
Married - $228,000
True of False: RMD's do not apply to Roth IRA's?
True - However, their beneficiaries will be required to take a distribution
What happens if Rollover is not completed within 60 calendar days?
What two things must be true for a Roth IRA owner to withdraw the earning tax free?
1) Meet 5 year waiting period
2) Have a qualified reason: 59 1/2, death, disability, or First time home buyer expenses