IRA Product Info
What does IRA stand for?
Individual Retirement Account
What are the features of a Traditional IRA?
Possible tax deduction in the year of contribution & FDIC coverage
What is the maximum contribution for an IRA?
$6,500 or $7,500 if age 50 or older
At what age can you make a qualified distribution?
59 1/2
What are the 2 common reasons you would use RRS?
To view beneficiaries & RMD info
What do M&T IRA account numbers start with?
3500
What are the features of a Roth IRA?
Tax free-growth of money contributed, FDIC coverage, & distributions are not required
Who makes a contribution to a SEP IRA?
The employer
What age must you take an required minimum distribution (RMD)?
73
Transfer to M&T Checking
How many people can be on an IRA account?
1, all IRAs are solely titled
What is a Simplified Employee Pension Plan (SEP)?
IRA Plan that allows businesses/employers to establish and contribute to employees’ retirement accounts
What age does an individual have to stop making contributions to their IRA?
Individuals can contribute to a Roth IRA or make rollover contributions to an Traditional IRA, Roth or traditional, regardless of their age.
For a Traditional IRA, what happens when a distribution is premature?
10% IRS penalty & taxed as ordinary income
In the distribution information field, what does 'period' mean?
Frequency of payments
Who is eligible for an IRA?
Individuals that have taxable compensation
What kind of IRA can a non-working spouse have?
Spousal IRA
For a Spousal IRA, what happens if the non-working spouse does not have taxable compensation?
They can contribute to their IRA as long as their spouse had taxable compensation
For a Roth IRA, what happens when a distribution is premature?
No taxes or IRS penalties for distributions from contributions & interest earnings might be subject to income tax and 10% early distribution penalty tax
In the customer information field, what does the 'Early Disb' field show?
Date IRA holder turns 59 ½
What is it called if an individual has several IRAs within several institutions?
IRA Portfolio
What do you do if a customer asks which plan they should be in?
Contact a tax consultant for more information
What happens if an individual exceeds their contribution limit?
They may withdrawal excess contributions from the account by the due date of the filing of their tax return. Otherwise they may be required to pay a tax on the excess amount left in the account.
What happens when the IRA account holder passes away?
Distributions are made to the beneficiaries without penalty
How do you use the menu functions in RRS?
Type number of the corresponding function in the field to the right of the colon found at the bottom of any selected Participant screen and press Enter