Contain vs Transfer
Client wants to know how much they have already contributed to their IRA this year?
Contain. Check the Retirement Summary or guide the client there if they are online
Client wants to know how much they have contributed to their Roth account overall. How can we help the client? Can we provide them the amount?
No, we cannot calculate the amount for them. The client can utilize their prior year 5498 forms and their transaction history
What Tax Form would show a client's contributions to their IRA?
5498
What are the two pieces of information needed to calculate an RMD?
Year end balance and Life expectancy factor
Can a client rollover their Roth IRA out to an employer plan?
No, VG cannot certify to the employer whether your IRA contributions were pre or post tax
A client calls in and says they made a contribution last week but after talking to their tax pro they found out it was not allowed. They were advised to have Vanguard switch the account it was contributed to.
This is referred to as a Recharacterization and you will want to get this client over to Retirement Complex to discuss.
Client accidentally contributed to their Roth IRA instead of their Trad. What is the next step?
Recharacterization
Bonus: Who will we need to transfer to?
What Tax Form would show distributions from an IRA?
1099R
Client has missed their prior year RMD. What will be our next steps?
1. Take the missed RMD ASAP.
2. Advise the client to work with a tax pro if needed.
Bonus: Send the client the RMD Shortfall Fact Sheet
Client wants to take a distribution from their IRA and says "can you just do it"
What are the three things we need to cover before transferring to lic?
1. How do they want to receive the funds. Verify that source is correct/fully authenticated
2. Ask the client if you can assist them online
3. Inform the client of the BAC
A client calls in and states they want to make a SEP contribution to their Traditional IRA and want the crew member to process the contribution.
This is referred to as an Employer contribution. Contain if settlement fund contribution in VBA or any contribution in TA retirement account.
Client wants to know if they can take a loan from their Trad IRA account. What process might they be speaking of?
Indirect Rollover
When can clients expect to receive their 5498?
The 5498 is mailed to clients by May 31.
What is the Required Beginning Date? (Date when first RMD must be taken by)
April 1 of the year following the year a client turns RMD age.
Bonus: What should we mention if a client is taking their first RMD before April in the year following?
Client wants to take a distribution and has an RDR. We see that the funds were received within the last 20 days and are currently invested in a MF? Can we contain any part of the process?
Yes! We can verify the funds and create the dynamics alert before transferring to a licensed rep
A client calls in and they want to make a Roth Contribution, but they do not have an account opened yet.
Contain. Clients can either contribute through the Open an Account process or you can assist them with the contribution after it is opened.
Client has a Trad IRA with VG and want to roll it over to their employer 401K. How can we help the client with this request?
Send the client the "(VBA) Vanguard Brokerage Account IRA Distribution" form
Does Vanguard do any official tax reporting for VRIP accounts?
No
When a client misses their RMD due to Vanguard error, we can offer this letter
Shortfall letter.
Bonus: How do we get this letter to the client?
Client overcontributed to their SEP IRA and wants to take out part of the money they contributed.
What is the next step?
Transfer to retirement complex for an excess removal
A client calls in and states they took a distribution from their IRA last month and now want to return it as a contribution. They are unsure about process and ask for assistance.
The client is most likely referring to an Indirect Rollover Contribution. Contain
Bonus: what are the two rules we have to explain when discussing indirect rollovers?
Client is rolling over their Trad IRA to an outside 401k. We have send them the proper form to complete the request. What are the two key items we need to let the client know about this process?
1. The funds must be available in the settlement fund before the form can be processed.
2. They will need to provide on the form, the name of the institution as it needs to be listed on the check & the account #
A client funded their SEP IRA with a 2024 employer contribution in March 2025. This contribution will show on their 2024 or 2025 5498?
2025 5498 produced in 2026, SEP employer contributions are reported on a calendar year basis.
A QCD taken outside of the RMD calculate and distribute service will require what action taken by a representative to prevent overdistribution?
An RMD service adjustment (A Year to date distribution adjustment)
Bonus: Can we process this adjustment?
Client is looking to take a distribution and is not web registered. Can we assume they will need to be transferred to a licensed rep?
NO! Remember what they say about assumptions.