IRA BASICS
This is the primary purpose of an IRA.
What is saving for retirement?
This IRA generally provides the potential for a tax benefit on contributions now, with taxes generally paid on taxable distributions later.
What is a Traditional IRA?
This type of income is generally required to make an IRA contribution.
What is earned income?
A Traditional IRA member is age 60 and wants to withdraw $500.
What distribution code applies?
What is Normal Traditional?
RMD stands for this.
What is Required Minimum Distribution?
An IRA transferred to a beneficiary after the original owner dies is called this.
What is an Inherited IRA?
The credit union's role with IRA accounts is primarily this.
What is custodian responsible for administration and reporting?
With this IRA, qualified withdrawals can be tax-free.
What is a Roth IRA?
IRA contribution limits apply to the combined total of these two IRA types.
What are Traditional and Roth IRAs?
A 45-year-old member wants $1,000 from their Traditional IRA to pay for car repairs.
What code applies?
What is Early Traditional?
Under the trainer guide, Traditional IRA owners generally begin taking RMDs at this age.
What is 73?
When a Cornerstone IRA owner dies, this department reviews the documentation and submits the death claim to Ascensus.
What is Retail Operations?
This form collects the member's personal information, beneficiary designations and account selections needed to establish the IRA.
What is the IRA Application?
A member asks, "Which IRA will save me the most money on my taxes?"
How should you respond?
What is provide general information but refer the member to a qualified tax professional for individualized tax advice?
A member makes an IRA contribution in March and wants it applied to the previous tax year.
Which contribution type should be selected?
What is a Prior Year Contribution?
A member moves their Traditional IRA to another Traditional IRA.
What type of transaction is this?
What is a Transfer?
James turns 73 on March 15, 2026.
When is his first RMD due?
What is April 1, 2027?
A beneficiary brings completed death claim paperwork to the branch and asks for the funds immediately.
Should the branch simply disburse the money? Why?
What is No—the death claim must be processed and the disbursement completed according to Ascensus' instructions?
When opening a new IRA, this should be established before opening the IRA Share in New Solutions.
What is the IRA Plan in Ascensus?
For a Roth distribution to be coded as Normal Roth under the trainer guide, these two conditions must be met.
What are the Roth has been established for more than five years AND the member is over age 59½?
This is the New Solutions transaction code used for IRA contributions.
What is SDIRA?
A member moves IRA funds into an eligible employer-sponsored retirement plan.
What type of transaction is this?
What is a Direct Rollover?
James' second RMD is due by this date.
What is December 31, 2027?
A member inherits an IRA from their father and another IRA from their mother.
These inherited IRAs generally must remain this way.
What is separate from each other and separate from the member's own IRA?
This is something every employee should remember when a member asks which IRA will give them the best personal tax result.
What is refer the member to a qualified tax professional rather than providing tax advice?
A Roth IRA is less than five years old and the member is under 59½, but the member has a qualifying disability or IRS tax levy.
What is a Roth Exception distribution?
A member says, "I think I deposited too much into my IRA this year. My accountant told me to pull it out."
This is your cue to do this.
What is contact Operations Support/Ascensus rather than treating it as a normal withdrawal?
“I want to donate my Required Minimum Distribution to my church this year. Can you process that for me?”
Contact Operations Support rather than processing it as a standard RMD distribution?
A member asks, "How much is my RMD?"
This is where you find the answer because the credit union does not calculate it.
What is Ascensus?
This IRA tax form reports contributions and is generally received by members in May.
What is Form 5498?