RMDs
This is the current age at which most participants must begin taking RMDs under SECURE Act 2.0.
What is age 73?
Fraud fighters never skip this process, even when the caller sounds confident and knows account details.
What is authentication or identity verification?
The percentage of employer contributions a participant owns based on years of service.
What is vesting?
This percentage is commonly withheld from eligible rollover distributions paid directly to a participant.
What is 20% federal withholding?
Unlike Roth contributions, earnings on these balances are always taxable when distributed.
What are after-tax contributions?
A participant who delays their first RMD can wait until this date of the following year to request their RMD without penalty.
What is April 1?
An unexpected email, text, or phone call requesting account information is known as this.
What is an unsolicited communication?
The person designated to receive retirement assets after a participant’s death.
What is a bene/beneficiary?
RMD payments are subject to this level of voluntary federal withholding.
What is 10% voluntary federal withholding?
Participants generally must meet this age requirement and a five-year holding period for qualified Roth earnings to be tax-free.
What is age 59½?
If a participant waits until April 1 to take their first RMD, they may need to take this many RMDs that year.
What are two RMDs?
A participant reports account activity they do not recognize. This is the first action the representative should take before assuming fraud.
What is validate the activity using account records and plan information?
This IRS form is required when a participant wants to change federal tax withholding on installment payments lasting 10 years or longer.
What is Form W-4P?
DAILY DOUBLE: Name the three distribution types that require full Special Tax Notice scripting.
What are standard distributions, installments lasting less than 10 years, and D-Team distributions?
This strategy allows participants to convert after-tax contributions to Roth and is commonly known by this nickname.
What is a Backdoor Roth?
The IRS may impose this penalty percentage if a participant fails to take their required RMD.
What is 25%?
A participant cannot explain recent transactions, appears confused, and another person is directing the call. This concern may exist.
What is potential financial exploitation? (potential Elder Abuse)
The factor used with the prior-year account balance to calculate an RMD.
What is the Life Expectancy Factor (LEF)?
True or False: Taxes are withheld on an In-Plan Roth Conversion at the time of distribution so the participant does not have to worry about the taxes at for this.
False
This is where I look to find the Pre‐87 & Post‐86 after-tax contributions.
What is the Balance tab on Inquiry Screen?
Beginning in 2024, these balances are excluded from RMD calculations during a participant’s lifetime.
What are Roth balances in sponsored plans?
A participant calls to report suspicious activity and believes their account may have been compromised. To ensure the case is escalated correctly, identify all required CSA actions from initial verification through final account documentation, including the form used and any follow-up account maintenance requirements.
What are verify the caller using WSCC Caller Verification, obtain the participant's phone number, review PSRC and cancel pending transactions, complete the Director Investigation form with all relevant details, collect transaction information if applicable, add a participant alert, and report the case to the Client Liaison Team?
The factor used with the prior-year account balance to calculate an RMD.
What is the Life Expectancy Factor (LEF)?
Participant lives in IOWA and is requesting a 59.5 withdrawal from their 401k the state taxes withholding percentage will be_____.
What is the default state withholding rate is 3.8% of the taxable amount?
DAILY DOUBLE: A participant in Plan 642168 wants to know if they can make After-Tax contributions and, if so, which contributions count toward the 2027 annual limit of $72,000.
What is yes, and employee before-tax, Roth, after-tax, and employer match contributions that count toward the 415 Dollar Limit?