Contribution
What are the 2019 EE contribution limits for Traditional and Roth IRA's?
$6,000 ($7,000 catch up)
How does upgrading to VBA platform affect the client's tax forms?
They will receive two sets of tax forms - one for the TA and one for the VBA
What are the client's options if they contributed too much to an IRA before April 15?
Excess removal of contributions and earnings
When must a client begin taking their RMD in 2020?
Age 72 (deadline is April 1st of the year after they turn 72)
An __________ is a personal, tax-deferred account the IRS created to give investors an easy way to save for retirement.
IRA (Individual Retirement Account)
What are the 2019 EE and ER contribution limits for SEP IRAs?
EE: $6,000 (catch up $7,000)
ER: $56,000 (catch up $57,000)
What tax form reports ESA distributions?
Form 1099-Q
What is the deadline for Traditional and Roth IRA contributions for tax year 2018?
April 15, 2019
What is the 72(t) exception?
Waives of 10% premature distribution penalty if a client meets certain exceptions
Ex: death, permanent disability, medical expenses, unemployed health insurance premiums, first home purchase, birth/adoption of a child, post-secondary education expenses, etc
According to Vanguard.com, what are the two factors to consider with a Roth IRA?
Eligibility and contribution amounts could be limited by your income
Contributions can't be deducted
What is the 2019 contribution limit for SIMPLE IRAs?
Lesser of $13,000 or 100% of compensation
What types of transactions (i.e. EE vs. ER and account type) are reported on the 5498 on a calendar year basis?
EE to a Simple IRA
ER to a SEP IRA and Simple IRA
Rollovers
What are the penalties for taking an early distribution from a Traditional IRA?
10% penalty and required to pay normal federal income tax
What is the maximum QCD amount an IRA owner may take in one year?
$100,000.00 per year (even if their RMD amount exceeds $100,00.00)
According to Vanguard.com, what are the three factors to consider with a Traditional IRA?
No contributions allowed after age 70 1/2
RMDs must start at age 70 1/2
A portion of your withdrawals may be taxable
What are the 2019 contribution limits for Individual 401ks?
EE: $19,000
ER: $56,000 or 25% of compensation
Why does the Vanguard Real Estate (REIT) Index Fund not reported on the tax forms until later in February?
This Vanguard Fund invests in individual Real Estate Investment Trusts (REITS) which generally cannot calculate their taxable earnings until after the end of their tax year (usually the calendar year).
VG seeks an extension from the IRS each year to mail completed forms after the normal deadline of Feb 1.
What is the tax filing deadline for making a contribution to an Individual 401k for a corporation, tax year 2018?
(need specific date)
March 15th, 2019
If an IRA owner does not indicate a withholding election in their dist request, does Vanguard withhold for Federal and State taxes and if so, how much?
Yes- Vanguard is required to withhold 10% Federal and any applicable state taxes
According to Vanguard.com, what are three benefits of a Traditional IRA?
Contributions may be tax-deductible
Earnings grow tax-deferred
Eligibility not limited by income
What is the income limit for a SEP IRA?
$280,000
What is a "Spillover Div" and where may clients notice a discrepancy?
A dividend paid by a Mutual Fund in January with a record date in October, November, or December
This means the declaration date year & taxable year occur at different times.
This affects Tax Forms vs. Crave & Portfolio Statement - they may show differing amounts
When can an individual without any earned income contribute to an IRA?
A non-working spouse who is below RMD age, and couple is filing taxes jointly
If a spouse who is under 59 1/2 assumes an IRA from a spouse over 70 1/2 and the RMD must be satisfied - what is the distribution coding and is there any penalty?
Spouse must pay 10% early distribution penalty
According to Vanguard.com, what are 4 benefits of a Roth IRA?
No taxes on withdrawals of contributions
No taxes on earnings
No RMDs
No age limit to open the IRA or contribute to it