IBR
***TRIPLE BONUS***
300 pts possible - Fill in the blanks:
A pension is a type of retirement benefit provided and funded exclusively by the _________. The employee has ________ control over the amount or investments. A pension ________ be rolled into a 401k.
***TRIPLE BONUS***
300 pts possible - Fill in the blanks:
A pension is a type of retirement benefit provided and funded exclusively by the employer. The employee has no control over the amount or investments. A pension can be rolled into a 401k.
***TRIPLE BONUS***
300 pts possible - 100 pts for each question
1.) What is a split action distribution?
2.) T/F: Guideline allows split action distributions.
3.) T/F: The PT can transfer one type and leave the other in their Guideline 401(k).
***TRIPLE BONUS***
300 pts possible - 100 pts for each question
1.) A split action distribution is when a participant requests to do two different distribution actions with each of their fund types.
2.) True! Guideline does allow PTs to do split action distributions.
3.) False! ALL vested funds must be liquidated and moved with a distribution request. We can’t only transfer one fund type and leave the other in their Guideline 401k.
How is the interest for a 401(k) computed? Does the interest only apply on the full value of the loan or just on the amount that the PT has withdrawn?
The interest is applied to the full value of the loan.
The list of qualification reasons for a hardship withdrawal are set by _________.
The list of qualification reasons for a hardship withdrawal are set by the IRS, not Guideline.
True or False: If a PT emails Support and provides their date of birth (DOB) for verification without being asked, we may use it as L1 verification.
True! - While you can’t ask for DOB for email cases, if the PT provides it without being asked, you may use it as verification.
200 pts possible - 100 points per question
1.) What is a "DTC" number used for?
2.) What is Guideline's DTC number?
200 pts possible - 100 points per question
1.) "DTC" stands for Depository Trust Company. It’s essentially a ID code for electronic transfers.
2.) Guideline does not have a DTC because at this time, we don’t allow for electronic rollovers. Participants have to mail us a check.
When a participant does a GDL > GDL distribution, the rollover will be an '________' transfer because the funds in their old GDL account will not be liquidated.
When a participant does a GDL > GDL distribution, the rollover will be an 'in-kind' transfer because the funds in their old GDL account will not be liquidated.
200 pts possible - 100 pts for each fill in the blank
The PT has to have a minimum balance of _______ that is _______ vested in order to apply for a loan.
200 pts possible - 100 pts for each fill in the blank
The PT has to have a minimum balance of $2000 that is fully (100%) vested in order to apply for a loan. The minimum loan amount is $1000 AND maximum of 50% of a participant’s vested balance. If a participant has only $1000, that’s 100% of their balance. In order to withdraw $1000, they would need a minimum of $2000.
Funds incur a 10% federal withholding upon distribution. Can the 10% federal withholding be waived? Yes/No
Yes! - The 10% federal withholding can be waived with a W-4P form (provided in the application workflow), however, this means the rather than having the funds held from the distribution, they would be required to pay the amount owed for the upcoming tax filing year.
There are several different pieces of information that can be used for level 2 verification. How many different options are acceptable for L2? Please submit a number!
The PT has 6 different options for L2 verification:
1 - Guideline account number (GDL AN)
2 - Date of hire (DOH)
3 - Date of separation of employment (DOS)
4 - Date of enrollment (DOE)
5 - Date of first contribution
6 - Beneficiary name (if provided in the Participant's account)
For an indirect rollover, the participant will need to provide GDL supporting documentation such as a distribution statement or 1099-R from their previous provider, that confirms:
1.) _____________
2.) _____________
3.) _____________
The participant will need to provide GDL supporting documentation, such as a distribution statement or 1099-R from previous provider, that confirms:
1.) Full distributed amount and fund type
2.) Taxes withheld
3.) Date of distribution
300 pts possible - 100 pts per question:
1.) We should only offer to _____ transactions and liquidate the account for scenarios where the pending transactions are held up because of the employer.
2.) If the participant does want to move forward with pausing the transactions and liquidating the account, the PT must submit their request via the _____.
3.) Because of this, we can then only offer the funds via _____.
300 pts possible - 100 pts per question:
1.) We should only offer to pause transactions and liquidate the account for scenarios where the pending transactions are held up because of the employer.
2.) If the participant does want to move forward with pausing the transactions and liquidating the account, the PT must submit their request via the manual form.
3.) Because of this, we can then only offer the funds via paper checks.
300 pts possible - 100 pts per question
To offset, the participant can:
Wait __ days from Date of Termination, it’ll automatically default/offset.
Wait __ days from Plan Termination date, it’ll automatically default/offset.
Request a __________ OR __________, it’ll liquidate the account, and treat the remaining balance as defaulted/offset.
300 pts possible - 100 pts per question
To offset, the participant can:
Wait 90 days from Date of Termination, it’ll automatically default/offset.
Wait 90 days from Plan Termination date, it’ll automatically default/offset.
Request a Cash Distribution OR Outbound Rollover, it’ll liquidate the account, and treat the remaining balance as defaulted/offset.
True or False: A Participant can use their Hardship Withdrawal funds for anything. A Hardship is subjective to the person and their situation.
False! There is a list of qualification reasons. We advise they review the list of reasons for a hardship withdrawal with a financial advisor. Guideline does not require any type of supporting documentation to verify the reason. However, if they were to be audited by the IRS, the IRS may request to proof that the funds went to the qualified reason(s) selected.
300 pts total possible - 100 points for each fill in the blank!
Verification dates MUST be exact. However due to recent changes in 2023, the participant’s __________ and __________ can be off by ___ day(s) and be accepted.
300 pts total possible - 100 points for each fill in the blank!
Due to recent changes in 2023, the participant’s Date of Hire and Date of Separation can be off by 1 day and be accepted.
What is a 403(b) account?
403b - Very similar to a 401k, but used mostly for public education organizations. A 403b itself is a type of account, which can contain Roth or Pre-tax much like a 401k.
What is the Rule of 55?
The rule of 55 is an IRS guideline that allows 'Dismissed' individuals to withdraw funds with no 10% early withdrawal penalty. It does not matter if the participant was terminated or quit. The participant must be dismissed in the calendar year that they will turn 55 or older. This is the most important piece to the rule!
400 pts possible - 200 pts for each fill in the blank
Loan Term Length:
Up to ___ years for general purpose loan
Up to ___ years for primary residence purchase*
400 pts possible - 200 pts for each fill in the blank
Loan Term Length:
Up to 5 years for general purpose loan
Up to 10 years for primary residence purchase*
400 pts total possible - 200 points for each fill in the blank!
What is the SLA for a HW? In total, we can quote around __ - __ weeks for ACH, and __ - __ weeks for a paper check. Keeping in mind always, these timelines can vary. The application process can be quick, sometimes applications are automatically approved.
400 pts total possible - 200 points for each fill in the blank!
What is the SLA for a HW? In total, we can quote around 2 - 3 weeks for ACH, and 3 - 4 weeks for a paper check. Keeping in mind always, these timelines can vary. The application process can be quick, sometimes applications are automatically approved.
True or False: If a PT sends a screenshot, we can view it.
True! There was a recent update in SFDC where attachments are automatically attached! If the PT sends an imagine/screenshot, you can view it by going to Related > Emails and clicking on the last email to view it. We can NOT download anything however. If anything requires downloading, we should still instruct the PT to upload it to their Shared Folder for us to view.
500 pts possible - all or nothing!
There are many different ways to transfer funds. Which of the following methods are approved for an IBR to Guideline? List all the letter(s) that are approved.
A. DTC
B. In-kind transfers
C. Trustee-to-trustee transfers
D. Paper checks
E. Asset transfers
F. Electronic transfers
D - At Guideline, we can only accept paper checks. At this time, we do not do any type of electronic transfers or work directly with other financial institutions. In order to roll funds into Guideline, their provider would need to liquidate the account, and cut a check, made payable following our instructions.
Fidelity offers something known as a Rollover IRA. What is a Rollover IRA? What should the PT select if they're submitting their request through the workflow?
A Rollover IRA acts very similar to a IRA, but it can only accept Pre-tax funds. It’s essentially the same thing as a Traditional IRA.
When participants go through the workflow, they can select Traditional IRA.
All or nothing! 500 pts possible
How many business days does it take for the loan overpayment refund to process?
It can take up to ___ business days for 'ENTERPRISE/MAX' and ___ business day for 'ALL other plans'.
All or nothing! 500 pts possible
How many business days does it take for the loan overpayment refund to process?
It can take up to 14 business days for 'ENTERPRISE/MAX' and 21 business day for 'ALL other plans'.
Can A PT cancel a hardship withdrawal request if they decide after processing that they no longer need the funds?
HWs are irrevocable. If Guideline approves the Hardship Withdrawal, funds will immediately be disbursed from the account. This is irreversible and the participant acknowledges this within the application. However, we can request the application be cancelled if it hasn’t yet been approved. There’s no guarantee it will be cancelled though.
What are Guideline's hours of operation?
Guideline is open from Monday to Friday from 6 AM-4 PM PST or 9 AM - 7 PM EST. Guideline hours of operation follow stock market holidays.