Definitions
What type of IRA does not have Federal or State taxes withheld at the time of distribution?
Roth
George is the owner on a Traditional IRA, he is coming into the bank today to take out $3,000. What form would you have George complete and sign?
IRA Distribution Form W-4P Combo
Upon what age is an IRA owner required to begin taking distributions from their Traditional IRA?
72
When an IRA owner passes away, beneficiary IRA's are opened in the name of the beneficiaries. How are these accounts to be titled?
Beneficiary of Deceased Name
Alice is John's spouse. Alice is listed as the primary beneficiary of John's IRA. Upon John's death, what is the advantage Alice has being John's spouse?
What type of transaction is limited to one per year (12 months), with no exceptions?
Rollover
Rebecca is completing a distribution from her Roth IRA. Provided her type of IRA, what section of the form would you not complete for Rebecca?
Federal and State Withholding
Upon what age is a distribution no longer considered 'early'?
59 1/2
Customers cannot receive their automatic RMD notification letters no earlier than how far in advance prior to their distribution date?
6 months; these are processed in both December and June.
Margo is set up to receive her annual RMD from her Traditional IRA on December 1st for Christmas shopping each year. Margo passes away at the age of 85 on July 1st. Margo has her two children listed as beneficiaries. What is the first thing that needs to happen once the beneficiary IRA's are opened for Margo's children?
They must equally satisfy her RMD - taken as distributions from their newly established beneficiary IRAs and pay takes upon those distributions.
Jenny has an IRA and lists her husband as her primary beneficiary with 100%. Jenny also has her three children listed as beneficiaries as well. What type of beneficiaries are her children referred to as?
Contingent
Every year, if/when the bank is notified of a customer taking their RMD from another institution, what form is needed to be signed and returned by the customer?
IRA Waiver of Minimum Distribution
What is required to be asked on every contribution made between January 1 and April 15th?
Who maintains the internal tracking spreadsheet of RMD's waived?
Katie Menken or Carol Schrage
Carlos holds a Traditional IRA at CUSB as well as a Roth IRA at United Bank and Trust. Carlos no longer is employed with his previous employers, he has decided to pursue his dream of woodworking at home. Carlos would like to consolidate all of his existing IRA's into one Roth IRA at First Security. How must he do so?
Conversion of the Traditional IRA at CUSB to a Roth IRA - A rollover to First Security from his Roth IRA at UBT, opening one Roth IRA Plan for the funds.
What type of plan consists primarily of employer made contributions?
SEP
An excess contribution is made to an IRA for their tax year. What form is needed to assist with the calculations to determine the excess amount to be removed, as well as the accrued earnings to be removed?
IRA Excess Contribution Worksheet
What type of IRAs are subject not only to contribution limits, but income limits as well?
Roth
Chris passes away at the age of 45. Chris had an IRA where he paid taxes prior to contribution. He has five children listed as beneficiaries. What plan number are these five beneficiary IRA's opened with?
Plan 5 - Roth Beneficiary IRA
Ted, age 42, is in the bank and would like to walk away with $5,000 from his Traditional IRA to buy a boat. What are the various charges Ted will incur? What codes are used to process these on the IRA Debit tickets? Where do we reference to calculate these amounts?
Penalty of 10% - located under the CD > Redemption tab; using code 401 on the IRA Debit.
Federal and State tax withholding - using the withholding calculator website; using codes 428 and 429 on the IRA Debit.
A check is received through the mail issued as follows: "First Security Bank FBO Jenna Johnson, Roth IRA" - what type of transaction is this referring to needing to be conducted?
Transfer
A new beneficiary IRA is being opened, what IRA form within BPM is required to be completed?
IRA Election of Payment by Beneficiary for Traditional, Roth or SIMPLE
What tax related document is required to be obtained on all beneficiaries?
W9
When an IRA owner passes away, beneficiary IRA's are opened. What code is used to close out the original IRA and what code is used to open the new beneficiary IRA?
409 - Intra IRA Debit to Close
459 - Intra IRA Credit to Open
Jimmy comes into the bank to speak with a retail advisor to notify that his mother Edna has passed away ten days ago. Jimmy is from out of state and found a bank statement when cleaning his mother's house. He has come to claim all the accounts she holds and the funds within the IRA, the bank statement shows Edna holds $9,000 total at First Security. Edna has no other family, she and her only son were estranged. Jimmy is not listed in any capacity on the accounts. As a bank employee, what do you do?
Obtain the death certification from Jimmy to begin the process for him to claim the funds of the DDA accounts.
Note: Jimmy must wait 40 days to pass and must complete the Iowa Affidavit for Distribution of Property before being provided any funds from the DDA/IRA accounts. The IRA funds may then be claimed by Jimmy as he is confirming there is no estate.