Contributions/Distributions
The age that determines whether your distribution is normal or early.
59.5
Name Vanguard's 4 Investing Principles
Goals, Balance, Cost and Discipline
The formula to calculate an RMD.
YEB/LEF
The name of the legislation that changed RMD rules beginning in 2023.
SECURE Act 2.0
The age someone may begin taking QCD's and the age they must begin taking RMD's.
70.5. 70.5, 72, 73 or 75 depending on birthdate
The last date to make a contribution for a given tax year.
How do MF's and ETF's differ when it comes to trading
ETF's trade throughout the day, like a stock, with fluctuating price.
A client is set to distribute 100% of their RMD, through the RMD service, from their settlement fund. The settlement fund does not have enough funds to cover the full amount of the RMD. What will happen?
The balance of the settlement fund will distribute. This distribution will count towards their RMD, but not fully satisfy it. The client will need to do a separate transaction to fully satisfy the RMD.
The process that a surviving spouse must complete to assume an IRA after previously having inherited it. What key phrasing needs to be included?
Submit an LOI. Submit an account opening form (if necessary). "distribute and rollover"
The amount of time that someone has to complete an indirect rollover and Vanguard's interpretation of when this time begins.
60 days. Vanguard’s position on when the 60-day period begins: The trade date is considered “the day you receive the distribution” and is when the 60-day period starts.
Roth IRA Distribution Ordering Rules
Contributions - Taxable Conversions - Nontaxable Conversions - Earnings
The minimum amount of money required to be eligible for PAS.
You are assisting a client with setting up the calculate and distribute RMD service, what dates do they have to pick from, in any given month, for a TA account? VBA account?
TA - Any day of the month
VBA - Between the 5th and 25th
Name the 4 criteria that qualifies someone as an eligible designated beneficiary.
Surviving spouse
Minor child of IRA owner
Disabled or chronically ill individual
An individual who is not more than 10 years younger than the IRA owner
Name the primary 4 tax forms that you need to be familiar with in Retirement and the purpose of each.
1099R - Reports distributions
5498 - Reports contributions
8606 - Reports nondeductible contributions
5329 - Reports penalty situations
What is the potential maximum dollar amount that someone could contribute to their Traditional IRA during calendar year 2024?
$13,500 or $15,500. Depending on age.
What is the name, and the length of time, of the Vanguard policy that prevents you from purchasing back into a mutual fund after you've sold it.
Frequent Trading Policy. 30 days.
The name of the letter that may be requested when someone misses their RMD due to Vanguard error, the process by which that is requested and what it requires to fully request that
Shortfall Letter. Dynamics Case. TL Approval
Client is one of 4 beneficiaries of a given IRA. The previous owner did not fully satisfy their RMD prior to passing. How are the 4 beneficiaries required to satisfy the original owner's final RMD?
However they want. The IRS has not issued any guidance on how this is to be handled.
The limit on the number of QCD's that can be processed in a single transaction for a TA and a VBA account.
TA - 5 VBA - 1
The name of the Intelledox form that we would use to assist a client with rolling funds from their VG IRA to an employer retirement plan held at another institution. What is the stipulation when filling this form out for a VBA account?
IRA Distribution Form (TA or VBA). Desired funds to be rolled over need to be available in the settlement fund.
Vanguard Explorer Fund Admiral - Ticker symbol, minimum initial investment, YTD Return (as of 1/26), highest sector exposure within the fund and location within the 9 grid style box where it falls
VEXRX, $50,000, -0.75%, Industrials, Bottom Right (Small, Growth)
The process to request an RMD service distribution adjustment for a pending, or in progress, transaction.
Journey Template Tool - BPM Templates - RMD Distribution Adjustment - Dynamics Case
Post SECURE ACT: Name the 3 beneficiary types and the options each type has to distribute their money (Pre RBD)
Eligible Designated Beneficiary, Designated Beneficiary and Non Individual Beneficiary.
EDB - 10 Year Rule or RMD
DB - 10 Year Rule (w/ RMD's if post RBD)
NIB - 5 Year Rule
A client calls you requesting to wire funds from their IRA to a bank that is not on file. Name all of the necessary information, and security procedures, that must be provided, and passed, in order to process this transaction.
Bank account and routing numbers. Checking or savings. Any beneficiary information (if necessary).
VV or OTP, AML Questions, TL Override.