Distribution Basics
TRUE OR FALSE. Participants can withdraw all their funds from their qualified plan at any time for any reason.
False
A participant has $7000 in his account, with $3000 as EEDEF, $1500 ERPS and $ 2500 ERMAT. If he is 50% vested, how much can he rollover to another retirement account?
$5000
Lookup CN 125442
Alvino Ga****’s Withdrawal request was processed on March 22, 2019. How much was the federal tax amount withheld?
$1571.77
This document lists the regular repayment amount and duration until the gets paid off.
Loan Amortization Schedule
Below are Withdrawals eligible for rollover EXCEPT:
- Termination
- Retirement
- Hardship
- Death
An early distribution occurs if a participant makes a withdrawal from his or her qualified plan account before what age?
59 1/2 years old
Jack age 62 and has been making Roth 401(k) contributions for 7 years. What tax(es) will apply if he cashes out his 401(k) account?
None
Lookup CN 68815
Matthew Cr** requested to cash-out his 401k account on Oct/30/2013. What was the payment method he selected?
ACH or Direct Deposit
According to IRS, loan must be repaid at least once every ___________.
Once every quarter
A 72-year old participant needs to make a $3,500 minimum required distribution. He only distributes $1,200. How much penalty tax will he need to pay to the IRS?
$1150
The participant's ownership of the employer contributions in his or her retirement plan account.
Vesting
A 35-year old terminated participant is requesting a cash distribution of her account. She has $5000 in ERMAT, $1000 in SHMAC and $2000 in EEDEF. What is the minimum dollar amount that JH must withheld for Federal Tax given that he’s 100 percent vested in all ER contributions?
$1600
Lookup CN 108260
How many Withdrawal transaction were processed from January 1, 2017 to December 1, 2017?
4
When can loan's repayment period be extended to as much as 30 years?
Purchase of Primary Residence
An employer can distribute a former employee’s vested benefits from a qualified plan without his or her consent for amounts under $5,000 (not including rollover amounts). This distribution is called…
Mandatory Withdrawal
Participants use this form to report qualified plan distributions to the IRS when filing their tax returns – even rollover distributions.
1099R Form
What Federal Tax consequences will a participant face upon taking a hardship withdrawal?
0% or 10%
CN 57624
Participant Michael Bo****'s Loan 2 was processed on Jan/2019. What was the reason of the request?
General Purpose
How much is JH's loan recordkeeping fee?
$4 per loan per month
A Plan Sponsor requested Mandatory Distribution of the account of one of their ex-employees. The participant was 65 years old upon distribution and had a vested account balance of $900. How much Federal Tax must be withheld if the account is taken as cash?
$180
What are the 4 benefit distribution?
Retirement
Death
Termination
Disability
Jason Smith has been contributing Roth money in his account. His employee contribution earnings will be tax free upon distribution if he has contributing for ______ & ______.
5 years and at least 591/2 years of age
Lookup CN 69818
Lindsey Eng*******’s withdrawal request was processed on Sep/12/2018. When did she terminate her employment from the company?
03/01/2018
Apollo tracks loan repayment as part of a participant's assets using this label.
Loan Security Account (LSA)
CN 125442
Cristian De****'s Loan 1 was processed on April 2021. How much was the expected repayment amount?
$10.50