Secure the future
Rules and Secure Act 2.0
Rules and Secure Act 2.0
The Designated beneficiary of a 529 account must be maintained for this many years before it is allowed to be 529-to-Roth IRA transferred.
What is 15 years?
Interest income from this type of bond is typically exempt from federal income tax?
What are municipal bonds?
Due to new rules and existing rules, these ages allow 401k participants to add additional funds to their 401ks
What is age 50+ and additional for age 60-63?
The type of pension option that provides the highest monthly payout but stops upon the retiree's death.
What is a single-life annuity?
A life insurance policy may specify this clause, which defines circumstances under which the insurer may contest the payment of the death benefit.
What is the incontestability clause?
The year in which the RMD age will go up to age 75
What is 2033?
Prior to the Tax Cuts and Jobs Act of 2017, Roth conversions could be reversed by this term, but now they are permanent.
What is recharacterization?
This is technically the youngest someone can retire from their position today and withdraw from their 401k without a penalty.
What is age 54?
This insurance product is commonly purchased as part of the pension maximization strategy to protect a surviving spouse.
What is a permanent life insurance policy?
This feature of a life insurance policy allows the insured to receive a portion of the death benefit early if diagnosed with a terminal illness.
What is an accelerated death benefit?
The SECURE Act 2.0 introduces changes to the treatment of inherited IRAs, requiring most beneficiaries to withdraw funds from inherited accounts within this time frame.
What is 10 years?
Funds converted to a Roth IRA must stay in the account for at least this number of years to avoid penalties on earnings.
What is 5 years?
The government agency responsible for overseeing 401(k) plans.
What is the Employee Benefits Security Administration (EBSA) or the Department of Labor (DOL)?
The name of the pension benefit option providing a reduced amount of retirement income to ensure payments continue to a surviving spouse.
What is a joint and survivor annuity?
If a life insurance policy fails the 7-pay premium test and becomes classified as a MEC, withdrawals of earnings are subject to this type of tax treatment.
What is ordinary income tax plus a 10% penalty if under age 59½?
Individuals age 60-63 can make additional catch-up contributions to their 401(k)s each year; how much is this additional amount?
What is $11,250?
Municipal Bonds are typically income tax free if in the same state, however this type of tax could be charged if sold before maturity
What is Capital Gains Tax?
The term for a 401(k) plan feature that offers participants a choice of individual securities rather than mutual funds.
What is a brokerage window or self-directed brokerage account?
What is the main objection that we can not overcome for a Penmax strategy
What is poor health?
Life insurance proceeds paid to a beneficiary are generally income tax-free, but they may be included in the insured's estate for purposes of this tax.
What is estate tax?
The SECURE Act 2.0 includes provisions to address longevity risk through the promotion of these types of deferred income annuities, allowing individuals to defer distributions until later in life
What are Qualified Longevity Annuity Contracts (QLACs)?
What is the maximum number of months you can take to pay the taxes on your converted balances on a ROTH IRA Conversion without a penalty?
What is 15 months?
This regulatory requirement mandates that 401(k) plans must perform nondiscrimination testing to ensure benefits are not disproportionately favoring highly compensated employees.
What is the Actual Deferral Percentage (ADP) test?
There is a legacy left to additional beneficiaries because of this penmax benefit
What are residual benefits?
Assets placed in this trust pays your child income for life with the remainder passing outside of your child’s taxable estate to your grandchildren or future generations after your child is deceased.
What is Generation-Skipping Trust?