Retirement Accounts
What type of IRA allows Deductible contributions?
Traditional/Rollover IRA
A client calls in after the tax deadline and states they were given an extension by the IRS and wish to make a prior year contribution.
Contain
What date is normally the Tax Deadline?
April 15th
What Tax Form would show a client's contributions to their IRA?
5498
A client calls in and has a VBA Non-Retirement account that they would like to use to fund a contribution. They do not have any funds in the Settlement Fund and would like assistance selling the Vanguard 500 Index to Settlement.
Transfer. You will not be transacting on Vanguard Mutual Funds in a VBA account.
What type of IRA allows tax free distributions when a client reaches 59.5 and has held the account for 5 years or more?
Roth IRA
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.
What time do clients need to submit an ACH contribution by in order to receive a 4/15 Trade Date?
Clients will need to submit their contribution before 4pm Eastern on 4/15 to receive a 4/15
What Tax Form would show distributions from an IRA?
1099R
A client calls in and wants to know if their contribution will affect their QCD distribution.
Contain, you can discuss both QCDs and contributions and what effects they may have on each other
What type of IRA only allows Non-deductible Contributions?
Roth IRA
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.
When is the latest a client can send in a check contribution for a prior year contribution?
Clients will need to have their check contributions mailed and postmarked by April 15th in order to make a prior year contribution.
When can clients expect to receive their 5498?
The 5498 is mailed to clients by May 31.
A client calls in and wants to exchange from the Vanguard 500 Index fund in their TA Non-Retirement and exchange it to the Vanguard 500 Index Fund in their Rollover IRA as a contribution.
Transfer. You may only transact on money market funds in TA non-retirement accounts
What type of IRA is normally taxed as ordinary income when a client takes a distribution after attaining 59.5 years of age?
Traditional/Rollover IRA
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.
A client calls in on 4/15 at 5pm Eastern and wants to make a prior year contribution via ACH. What trade date would the client receive?
The client would receive a 4/16 trade date since it is after 4pm Eastern. The confirmation screen on Crave will help you confirm trade dates when processing contributions for clients.
If a client made a current year contribution before 4 pm on April 15th, will they receive a 5498 at the end of May of this year?
Yes, the 5498 reports all contributions from Jan 1st, through April 15th of the following year.
A client calls in and wants to know if they are eligible to contribute to their IRA. They mention that they do not have a Social Security number and identify as a Resident Alien.
Transfer. You will want to get Non-Resident and Resident Alien clients wishing to make a contribution over to Retirement.
What type of IRA does not have a RMD (Required Minimum Distribution)?
Roth IRA's do not have RMD's.
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
When is the latest a client can make a Prior Year ACH Contribution?
Clients have until 11:59 Eastern on April 15th to make a Prior Year Contribution.
Do clients need their 5498 to file their taxes?
No, the 5498 clients receive is for informational purposes only. Vanguard files a 5498 on behalf of the client to the IRS electronically by May 31st.
A client calls in and wants to contribute to their IRA. The client mentions that the funds are coming from a 529 Plan.
Transfer. You will want to transfer clients that mention 529 Contributions or Rollovers to Retirement.