Key Terms
Contributions
Distributions
IRA Misc
Misc
100

Wages, salaries, tips, bonuses, commissions, professinal fees and combat pay

Earned Income

100

What is the regular contribution limit?

2023 = $6500


2024 = $7000

100

What does RMD stand for?

Required Minimum Distribution

100

A contribution to what type of IRA is post tax?

Roth IRA

100

Who is the trustee or custodian of an IRA?

The financial institution

200

Rental income, interest, royalties, taxable alimony, unemployment compensation, disability pay, child support, social security. 

Not Earned Income

200

What is the catch-up contribution limit?

2023 - $7500

2024 - $8000

200

What is the RMD age?

73

200

A contribution to this type of IRA is pre-tax?

Traditional IRA

200

Does Community First collect the early withdrawal penalty on distributions?

No - it will be assessed when member files their tzx return

300

Have first consideration in receiving IRA assets upon the owner's death

Primary Beneficiaries

300

Who sets the contribution limits?

IRS

300

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

300

What are benefits of opening an IRA?

Tax deferred growth and possible tax deductions


300

What is the 401K match at Community First?

100% first 3%


50% additional 2%

400

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

400

What is the deadline for a contribution for 2023?

April 15th of 2024

400

What is the early withdrawal penalty and at what age is it assessed?

10% if not 59 1/2

400

What are 3 forms of payment for distributions?

Cash, check or internal transfer

400

What is the recommended minimum 401K dedection election to take advantage of the full company match?

5%  = 9%

500

Deposit must be made within this many days of the date the IRA owner receives the assets to be rolled over. 

60 calendar days

500

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

500

True of False: RMD's do not apply to Roth IRA's?

True - However, their beneficiaries will be required to take a distribution

500

What happens if Rollover is not completed within 60 calendar days?

Any amount not rolled over is considered a distribution and subject to income tax and early distribution penalty tax
500

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

M
e
n
u