RMD's
What is a an RMD
Required Minimum Distribution
What are the options for the RMD service
Calculate Only and Calculate and distribute
What is a QCD
Qualified Charitable Distribution
What is the consequence of under distributing or missing their RMD's
50%, 25% or 10%
How many islands does the Philippines consist of
7,641 (does not include sandbars or other landforms that emerge during low tide)
What account does not have an RMD
Roth IRA
What options do clients have in regards the frequency of distribution with the RMD service
Annually, Semiannually, quarterly, or monthly
How old do you have to be to be eligible for a QCD
70.5
How is the penalty determined
The IRS determines the penalty based on what year the RMD was missed and when they satisfied it
Where was german chocolate cake invented
Texas in 1852
How is the RMD calculated
Year-end-balance/life expectancy factor
What methods does a client have for receiving the money from the RMD service
Check, ACH/EBT or a distribution to a non VG retirement account
What is the benefit for a client to take a QCD
They are able to tax a tax benefit in addition to donating the funds if they do not need them
5329
What does "SPAM" stand for
Its a combination of "spice" and "ham" not "Scientifically processed animal matter"
Can clients aggregate RMDs and distribute from a single or numerous accounts
Yes, they can aggregate and distribute from Traditional, Rollover, SEP, and SIMPLE IRAs
What should you do if a client has the RMD set up and calls to take a QCD
Submit an adjustment through the JTT tool while the transaction is pending
Outside of the age requirement for a QCD what other eligibility requirements are there
Must be taken from an eligible IRA, be paid directly from the IRA custodian, subject to a maximum amount, must be paid to a qualified charity as defined by the IRS, must consist of taxable amounts
What is a shortfall letter
A letter provided to a client who took a missed/late RMD. It can be given if it was due to a VG or non VG error, the client submits the shortfall letter with the 5329. Should work with their tax pro
What letter does not exsist in any U.S. State name
Q
What should you discuss with a client who wants to delay their RMD
They can only delay the 1st RMD until April 1st of the next year. They are required to take the delayed RMD and that years RMD within the same year
What are the three types of adjustments you would submit through the RMD service
Year-to-date (YTD), Year-end Balance (YEB), and Life Expectancy Factor (LEF)
How is a QCD reported on the 1099-R? Why is it reported in that manner? What can the client provide to the IRS in regards to their QCD?
It is reported as a distribution (7). VG does not determine taxable/nontaxable amounts nor does VG determine if a charity meets the guidelines per IRS standards, they can provide copies of the check, transaction history, receipt from charity
What do you do when a client calls in about a missed/late RMD? What is the process on VG's side? What does the client need to do?
Help the client take the missed/late RMD amount, submit an adjustment via the JTT tool, place an alert on the profile. Inform the client to work with their tax pro on the 5329 and reporting the late distribution.
What animated motion picture was nominated for a Best Picture Oscar?
Beauty and the Beast