RMDs
Customers must complete this before we can process an RMD
What is a Tax Withholding Elections?
What should you look for when a client requests to journal shares to satisfy their RMD?
Is the client withholding taxes? IF YES, then Cash must be available. IF NO, (Opt Out) proceed normally.
This is the tax filing deadline for contributions into a retirement account
Tax filing deadline, April 15th of following year. (April 17th for Main and Massachusetts for Patriots Day)
This is the reporting method for Roth Conversions
What is a calendar year basis?
What is a 60 Day Rollover?
Clients can take a distribution out of the retirement account. If they put the money back within 60 days of possession of the funds then they will void any tax liability or early withdrawal penalties.
Schwab does not calculate RMDs for this account
What is an inherited IRA?
This is the maximum that can be withheld for tax purposes
What is 99%?
How much can a client over 50 contribute to an IRA?
Maximum of: $5500 standard plus $1000 catch up contribution
What accounts are eligible for conversion into a Roth IRA?
What are IRA, Rollover IRAs, SEP IRAs, SIMPLE IRAs and 401ks
How does the IRS require Schwab to report contributions?
In the year in which they are RECEIVED, not the year they are DESIGNATED
This account is the only retirement account that does not require an RMD
What is a Roth account?
You would use this to establish a monthly distribution on an IRA account
What is an IRA Distribution form?
A client will receive a 6% penalty if they do not do this before the tax filing deadline, including extensions
What is removing excess contributions?
This need to take place before a client over the age of 70 ½ converts their Retirement Account
What is take their RMD?
What can disallow a Roth IRA contribution
Max contribution to a traditional IRA, no earned income, MAGI over limit
Clients must take their RMD by this date in the year they turn 70 1/2
What is April 1st?
Clients are able to take this out of their Roth IRA ANY time w/o taxes or penalty
What is the Principle?
These things would make you eligible to make a retirement account contribution
What is earned income and age?
These accounts do not allow for Conversions
What are Education savings accounts and inherited traditional IRAs
These would be ALL the ways that a client can make a distribution from their account
What are checks, wires, money links, journals, charitable donations, and shares in kind?
What form is required to donate RMD as a charitable gift?
RMD Distribution Form, NOT Charitable Gift Form
This is the maximum you can give to a charity from a retirement account
What is 100k?
This would determine if you can make contributions to a Roth IRA
What is the Modified Adjusted Gross Income Calculation?
When can you re-characterize a Roth conversion?
As of 2018 a re-characterizations are no longer allowed
This is the 401k and individual 401k contribution limit in 2018
What is $18,500.00 before the age of 50, $24,500.00 after?