AGE
At what age do RMDs begin?
73
if a ppt takes a distribution during the calendar year, it will not count towards their RMD for that year.
FALSE. Any amount distributed will count towards the minimum distribution amount for that year.
When do new RMD rules apply?
Deaths from 1/1/20 onward.
RRP payments are processed on the ____ of the month.
15th.
True. Participants may request to process their RMD early (requires manual form).
Can an RMD be rolled distribution be rolled over?
No.
Voya sends __________ to ppts notifying them of their RMD amount.
COURTESY LETTER
If the beneficiary is not a person, and died before becoming eligible for an RMD...the entire account must be distributed by 12/31 of the 5th year following the participant’s death.
TRUE:
IMPORTANT: If See-Through Trust, the rules may differ depending upon the type of beneficiary of the trust.
If the participant will be turning 73 in the current year, the RRP option (when allowed by plan) will be available in?
January.
A spouse can call in tier 2 authenticated on UPS Plan 660002 to process a partial/full distribution.
True. UPS is a Non-Participant Only plan which means any caller who password authenticates can access information and/or process transactions with a CSA.
When is a ppt required to take an RMD when they are still actively employed?
For sponsored accounts where participants are 5% owners of the business sponsoring the plan, RMDs must be taken by April 1st of the calendar year following the year in which they attain age 73 regardless if they are active or terminated from service
PSR.
OMNI 5.2/7.4.
IPS RMD CALCULATOR.
Non-spouse beneficiary is an Eligible Designated Beneficiary (EDB) if s/he meets one of the following requirements.
Ppts may change their withholding for recurring RMDs by letter only.
The $40 distribution fee applies to the RMD whether it is automatically processed or requested early.
False. The $40.00 distribution fee does not apply to an RMD unless the participant requests the RMD on their own. However, for an RMD that is automatically paid out in December, then the fee would not apply.
When a ppt turns 73, when must they generally take the first RMD payment?
April 1st *Subject to plan rules.
This table is used if the participant's spouse is not their sole beneficiary or their spouse is not more than 10 years younger than the participant.
UNIFORM LIFETIME TABLE (TABLE III)
This field identifies the method to be used to calculate minimum distributions.
Field: RMD Calculation Method (PH081)
RRP Information is stored in...
OMNI > Components > Installment Browse.
A ppt may convert their Employee after tax funds in an in-plan Roth conversion.
TRUE.
Participants may choose to convert amounts from the following vested sources:
A ppt who turned 72 in 2022, prior to the law change, can defer the first RMD payment to April 1, 2024.
False. If the ppt deferred their first RMD to April 1st, 2023, they will be required to take another RMD before December 31st, 2023.
What is the process a ppt must follow if they want to withhold less than 10% FIT?
Because the ppt died after becoming eligible for RMD and the oldest beneficiary is older than the ppt, the RMD is calculated using that beneficiaries DOB.
FALSE: If oldest beneficiary is older than participant: RMD calculated using deceased participant’s remaining life expectancy in year of death reduced by 1.
Once converted to OMNI 7.4, recurring RMDs will be available.
FALSE. Recurring RMDS are not currently a feature for Omni 5.2 clients (including those who have converted to Omni 7.4).
Any source in the UPS Stock fund can be moved into non-company stock funds, prior to requesting a hardship withdrawal/loan to increase availability.
FALSE. For maximum availability, participants should move balances out of the UPS Stock Fund (fund 80) and into non-company stock funds prior to requesting a loan/withdrawal.
Remember that transferring out of the UPS Stock Fund in non-loanable sources (such as Roth sources) WILL NOT create more availability.