Small Business
What are the four different plan roles that small business accounts can have?
Plan Administrator, Contact with access to banking, contact without access to banking, participant
What type of beneficiary is eligible to Assume an IRA?
Spousal Beneficiary
What is the deadline date for an excess and a rechar (the date)?
October 15
Who is eligible to do a Roth Conversion?
Anyone
What tax forms would be involved in a Back door conversion?
1099R, 5498, 8606
What % of mandatory withholding is applied to in service withdrawals from an i401k?
20%
In what situation would a Beneficiary be required to utilize the 5 year rule?
Pre-RBD Non-Qualified Beneficiaries
What is the penalty percentage for an excess removed after the deadline?
6% per every year left in account
What Tax forms would a conversion involve (3)?
1099R, 5498, maybe 8606
Which IRS publication covers information on Retirement Plans for Small Businesses?
Publication 560
The Matching method for a SIMPLE IRS ER Contribution means that employers must contribute 3% in three of every rolling ___ year period?
5 year
Which Life Expectancy table would an Inherited IRA RMD follow?
Table 1
What are the different coding options for earnings and contributions removed during an excess?
Current Year / Prior Year
What are the ordering Rules for a Roth IRA?
Contributions, Conversions (taxable portion), Conversion (nontaxable portion), earnings on contributions
What coding is given to an excess removal that is completed after the deadline?
Normal Distribution
List the SBOL call security
Caller name, Employer Name, plan address, plan ID ( or last four of caller SSN)
When is the Required Beginning Date?
April 1 of year following the year in which client reaches age 72
Which transaction uses LIFO rules when calculating earnings or loss?
Excess Removal
What three things would be filed/ tracked using tax form 8606?
Nondeductible contributions, distributions from a roth, conversions to roth
What are 3 things that would require a client to file form 8606?
Nondeductible contribution to a pretax IRA, Distributions from a Roth IRA, Conversions from a trad/sep/simple to a roth IRA
List the most restrictive eligibility requirements for a Sep IRA
At least 21 years old, has worked for the employer during at least 3 of the 5 years immediately preceding the tax year, has received at least $600 in compensation from the employer in the tax year
What four requirements comprise a qualified Trust?
1. Trust must be irrevocable or become irrevocable upon IRA owner’s death.
2. Trust must be valid under state law.
3. Beneficiaries are identifiable in trust document.
4. Custodian must be provided with a copy of the trust document or a summary list of the trust’s beneficiaries and conditions by October 31 of year following the year of death. (Vanguard currently scans a copy of the trust document when received, but cannot guarantee compliance of qualifying trust documents.)
What are two examples of a scenario where a client would need to excess remove an RMD?
If RMD was converted OR rolled over
What two requirements need to be met in order for a rollover distribution from a Roth 401(k) to be eligible?
Attainment of age 59.5 and after completion of five years in the plan
When would an i401k be required to file form 5500?
The year the plan assets exceed $250,000