SBS Training

SEP

100

The systems / Vanguard websites that are used to make the following contributions.

SEP SINGLE: Employer contribution

SEP SINGLE: Individual contribution

SEP MULTI: Employer contribution

SEP MULTI: Individual contribution

SEP SINGLE: Employer contribution > CRAVE / Personal Investor

SEP SINGLE: Individual contribution > CRAVE / Personal Investor

SEP MULTI: Employer contribution > OARS / SBOL

SEP MULTI: Individual contribution > CRAVE / Personal Investor

200

For a SEP IRA plan this is the most restrictive definition of a qualifying employee.

• Is at least 21 years old,
• Has worked for the employer during at least three of the five years immediately preceding the tax year, and
• Has received from the employer at least $650* in compensation in the 2022 tax year, or $750 in 2023.

300

The benefits of a SEP IRA to an employer.

• Employers can contribute up to 25% of a participant's compensation (not to exceed the annual additions limit for a given year)
  
  
• Contributions are tax deductible as a business expense.
  
  
• Contributions are discretionary. Employer may choose to contribute different percentage amounts in different years or even skip a year.
  
  
• No filing of Form 5500.
  
  
• Minimal plan administration. All employees maintain their own account.

400

The individual and employer contribution limits for tax year 2024 for a SEP IRA. 

Include limits for both under and over 50 years old.

Individual: 

under 50 $7,000 

50 or older $8,000

Employer: The lessor of $69,000 or 25% of compensation or (20% of net self- employed income if self-employed)

500

The contribution deadlines for individual and employer contributions to a SEP IRA

EE: The individual's tax filing deadline. (No extensions. Generally, April 15th)

ER: The Employer's deadline (including extensions if filed)

If taxed as a sole proprietor generally April 15th (or October 15th with extension)

If taxed as a corporation generally March 15 (or September 15th with extension)

*It is the client's responsibility to determine their specific deadline. Not Vanguard

SIMPLE

100

The potential early withdraw penalty for a SIMPLE IRA participant taking a distribution prior to attaining age 59 ½ and within 2 years of his or her first contribution.

25%

200

The benefits of a SIMPLE IRA to the Employee

• Salary deferrals reduce the employee's taxable income for federal income tax purposes.
• SIMPLE IRA contributions grow tax-deferred.
• All SIMPLE IRA contributions are fully vested.
• Employees have discretion over what investments are purchased in their SIMPLE IRAs.
• Employees have discretion over when to take SIMPLE IRA distributions, but penalties could apply to any early distributions.

300

This is when the two-year period begins for a SIMPLE IRA participant.

The TRADE DATE in which the first contribution was made. (Not the 1st day of the tax year of contribution like a Roth IRA.)

400

The employee limits to a SIMPLE IRA for tax year 2024. 

Include limits for participants under and over 50 years old.  

Employee: 

- Under 50 > the lessor of $16,000 or 100% of compensation

- Over 50 > the lessor of $19,500 or 100% of compensation

 

500

The employer contribution limits for a SIMPLE IRA for tax year 2024

Employer Matching: 

Cannot exceed $16,000 per employee participating in their plan. Limit changes to $19,500 if the participant is age 50.

Non-Elective:

Cannot exceed $6,900 per eligible employee (based on the 2023 compensation limit of $345,000)

i401k

100

The allowable reasons for distribution from an i401k account.

Severance from employment, In-service withdrawal,  plan termination, QDRO, Total and permanent disability, hardship withdrawal, RMD, Death

200

The requirement for an i401k participant to change their primary beneficiary to someone other than their spouse.

Individual 401(k) Beneficiary Designation Form.

Must be signed by spouse and notarized

300

The methods for taking a distribution from an i401k to a bank on file.

Paper form: Individual 401(k)/Individual Roth 401(k) Distribution Form

Intelledox: Remove money from your retirement or nonretirement account.

400

The annual contribution limitations for a 60-year-old participant of an i401k plan for tax year 2023.

Employee Salary Deferral: $30,000 or 100% of compensation (whichever is less)

Employer Contribution: 25% of compensation or $66,000

*Maximum Annual Addition: $73,500

500

The name of the intelledox and paper form that would be used to rollover assets from a client's i401k to their Traditional IRA

Intelledox: Remove money from your retirement or nonretirement account

Paper form: Individual 401(k) distribution to an Existing Account form

VRIP

100

What is the minimum initial investment for admiral funds in VRIP accounts?

 A VRIP Pooled fund/account can be opened by new investors below the fund minimum with the expectation that the balance will be over the fund minimum due to subsequent purchases/ contributions/ asset transfers within one year. IE none as long as they meet it within 1 year.

200

How do we help a VRIP client who calls in asking for his VRIP account tax forms?

Inform him we don't do the record-keeping for VRIP accounts. The client should reach out to their TPA for help with tax documents.

300

What do you if a trustee's bank on their profile is not authorized for use because the "VRIP has declined authorization for use with this bank"

Crew can provide the bank authorization on the trustee’s behalf once they pass phone security by navigating to the plan sponsor profile then navigating to Profile & account settings -> Security -> Bank account authorizations.

400

How can we help a VRIP trustee roll over their VRIP assets to an existing VBA IRA in their own name?

Intelledox: Remove money from your retirement or nonretirement account 

Paper form: Retirement Transfer Between Existing Vanguard Accounts Form 

500

Client wants to send VBA VRIP plan assets to a non-identically registered account at another institution and they don't have VV or OTP. How can they accomplish this?

Paper form: Special Payee Withdrawal from a VBA Nonretirement Account Form (Limited Use)
- The signature of the trustee(s) is required.
- A medallion signature guarantee is required.

MISC

100

What plan types are affected by the Ascensus transition?

What is the last day for clients to opt out of the transition to Ascensus?

SEP-multi, SIMPLE, i401k

 July 12th

200

A small business plan ID always starts with this number and is __ digits long.

Starts with a 1

Always 8 Digits long

300

These plan types always have SBOL access at the plan level because all contributions made into the plan are processed using SBOL.

SIMPLE and i401k

400

The following conditions must be met to cancel a purchase in SBOL / OARS

• The employer has called on the same day the error was made.
• The employer made one of the following errors:
• -entered wrong tax year
• -entered wrong contribution type (EE vs. ER), or
• -entered wrong dollar amount
• The purchase is re-submitted the same day with the correct instructions. Once the contribution instructions on SB Online are cancelled by a team leader, the team leader must verify that the employer has re-submitted the contribution.

500

Client calls and is having trouble registering for SBOL? What are common causes for this?

Online access set to no, registration attempts maxed out, incorrect email address on file, dual-cinergy. SSN incorrect.

(See "Unable to register on SBOL" standard work)