RMD
On the summary tab.
What is a key difference between Traditional IRA and Roth IRA?
Contributions into a Traditional IRA may be tax deductible and a Roth IRA has tax free growth and distributions.
(Pre-tax vs. Post- tax)
What did Prudential call their version of Client Works
Wealthscape
What form do you use for RMD Service and what is the SLA for that form?
CM111
SLA 1 Business Day
What is a QCD and what is the minimum age for setting up a QCD?
A Qualified Charitable Distribution is a reportable distribution of funds from an IRA that is made directly payable to a qualified charity. Client must be age 70.5 in order to qualify.
What screen in BETA can we use to see if RMD service has been established on a account.
DIST screen.
A client does not have to have earned income to contribute to a IRA or Roth IRA.
(True or False)
Bonus 100 points (does a spouse filing jointly who has no earned income needs to have earned income to contribute to a IRA or Roth IRA)
True or False
False
and
False
Does LPLE allow for seasonal address?
Bonus 100 points:
What form will the client need to sign if a tax code correction is needed?
No LPL E does not allow seasonal addresses
The client will need to sign the CM120.
Note: State withholding is reported to the mailing address on file at the time of distribution which may be different than the residence address causing multiple 1099R reporting.
What form is used for death distributions?
Bonus 150:
What is the SLA and how long does it take to receive direct payment?
CM107
SLA is "up to 5 business days" note that direct payment may be up to 10 business days
What are the 1099-R and 5498 used for?
1099-R is used for distributions and the 5498 is used for contributions.
Note: the 5498 is not required for tax filing, it is merely used for tracking purposes for the client.
What dates can you choose to set up RMDs to be distributed
The 10th and the 25th of each month through RMD Service
If you receive a call regarding SEP and Simple IRA plans, which team would you partner with?
Retirements IRA or Retirements EPS
Retirements- EPS
Note in Nice its coded as:
Retirements- Employer Plans (EPS)
What is difference between Pru's old way of RMD Service vs. LPLE's RMD Service?
Pru would make the funds available for the RMD Service, whereas here at LPLE, the FA needs to ensure there are enough funds available (unless it is a managed account product).
What form is used for a Roth conversion and what is the KEY difference regarding the Roth conversion fee?
Bonus 200 points:
How do you enter a Roth conversion request through the Move Money Tool?
CM-109 and the previous firm did not charge a fee for Roth conversion and LPL does charge a $25 fee.
Complete as a Journal use use Top Code A.
Can contribution be made with securities? True or False
False
If the client turns 73 this year (2024), when do they have to take their RMD.
April 1st of the year following their 73rd birthday.
Which of these two account types has an income limit: Trad. IRA or Roth IRA?
Bonus (200 points):
What is the income limit for a Roth IRA?
Hint: Covered in PowerPoint :)
Roth IRA
Income limit: $161,000 for single and $240,000 for joint
What is the difference between Pru POA rules and LPLE POA rules?
Bonus 200 points:
What form is used to update POA?
LE requires an additional document if the POA document is over 5 years.
F109
Note: POA expires 5 years from endorsement date.
What form will you use for an Excess Removal and what is the penalty (%) the client will receive each year until the excess is removed.
CM108
6% penalty Tax
Note - This is considered Complex Retirement, and these calls can be sent to our IRA Team for assistance.
What is a Indirect Rollover?
A 60-day rollover where the client takes constructive receipt of the funds and replaces it back into the IRA within 60 days.
What is RMD, what is RMD age and when is the deadline for taking a RMD?
Required Minimum Distribution
The Amount that is required to be distributed from a retirement account each year.
73 years old.
December 31st.
What is the contribution deadline and limit ($ amount) for Traditional and Roth IRA accounts?
Bonus 250 points:
What is the catch-up contribution amount and age?
for 2024, the amount is $7000 for both types of accounts and the deadline for contributions is April 15th (Tax Filing Day).
$1000 and age 50 and above.
What was Pru's Roth Conversion fee vs. LPLE's Roth Conversion fee?
Bonus 200 points: Can this fee be waived?
Pru didn't previously charge a fee for Roth Conversion and LPLE charges $25 (for tax reporting)
Manger will not be waiving the fee, however Advisors can choose to pick up the fee on behalf of their client.
What is the limit for the manual LOIR (F645)? How will the FA receive that form if it is over $100k? What is the SLA for this form?
$100,000
Reach out to the retirements team :)
3-5 Business days
What's the difference between Pru check deposit and LPLE check deposit?
Pru check deposit has 4 business day hold
(Deposit 11/7 available 11/13)
Did not include day of deposit
VS.
LPL check deposit has 5 business day hold
(Deposit 11/7 available 11/13)
Includes day of deposit