Types of IRA's
This plan is available to businesses, including sole proprietorships, partnerships, and corporations.
SEP (Simplified Employee Pension Plan)
When performing an IRA withdrawal, the system automatically defaults to __% federal withholding.
10%
We may provide tax advice to Members
False, always refer the Member to their tax-advisor or an Investment Services Consultant.
A withdrawal from an IRA
Distribution
3 reasons IRAs were originally created
Supplement retirement savings
Lessen burden on social programs
Defer taxes
If Members meet certain requirements, all earning are tax free when withdrawn.
Roth IRA
Withdrawals taken prior to age 59 1/2 are subject to a __% IRA penalty unless an exception is met.
10%
Taxpayers must establish an IRA and make contributions by their filing due date regardless of extensions.
False, extensions are excluded.
The Credit Union maintaining the IRA.
Custodian or Trustee
The typical tax filing date
April 15
Contribution limits are 25% of the bottom line profit or a maximum dollar amount of $57,000, whichever is less.
SEP IRA
A __% IRA penalty applies if excess contributions are not distributed by the Member.
6%
A 6% IRA penalty applies if excess contributions are not distributed by the Member.
True
Individuals who attain age 50 or older before the end of the tax year may be eligible.
Catch-Up Contribution
Each one stores the total of all contributions to and distributions from a specific type of tax-deferred share IRA for one Social Security number.
IRS Record
Individuals age 50 and over are permitted to make an annual catch-up of $1000
Traditional and Roth
When performing an IRA withdrawal, the system automatically defaults to __% state withholding.
1%
IRAs do not have to have beneficiaries.
False, all IRAs must have at least 1 beneficiary.
An amount that may be used to reduce a Member's taxable income.
Tax Deductible
This form reports contributions made to IRAs and the year-end fair market value (FMV)
5498
All earnings are tax-free if account has been opened for more than 5 years and the Member is over 59 1/2
Roth IRA
If an IRA holder fails to withdraw a required minimum distribution, they are subject to a ___$ excess accumulation penalty on the amount that should have been withdrawn.
50%
The maximum contribution limit for a SEP IRA is 50% of bottom line profit (business income).
False, contributions for a SEP IRA are limited to 25% of bottom line profit or maximum dollar amount of $57,000 whichever is less.
This governing instrument for the IRA contains financial projection for the IRA holder.
IRA Application - Simplifier
Form 1099-R is required to be sent to the IRA holder, beneficiary, or estate no later than ______.
January 31st