All things IRA
The deadline to make a contribution to a Traditional IRA
What is the tax filing deadline (generally April 15th)?
This type of distribution is called what when the funds are being used for medical/health related reasons
What is a Qualified Distribution?
TRUE OR FALSE:
An IRA and/or HSA can be joint if the two individuals are married
FALSE. IRAs and HSAs are single owned accounts only
This tax document is used to report distributions from an IRA
What is a Form 1099-R?
This is the movement of assets between the same IRAs, when the check is made payable to the financial institution
What is a Direct Transfer?
This withdrawal is required when the Member turns 73
What is a Required Minimum Distribution (RMD)?
This type of contribution is called what when the Member is over 55 and can make an additional $1000 contribution over the yearly limit for HSAs
What is a catch up contribution?
This retirement code is used when making a contribution into a SEP IRA
What is a SEP Contribution?
This tax document is used to report distributions from an HSA
What is a 1099-SA?
What is a Rollover?
TRUE OR FALSE:
A Royal Power of Attorney can be added to an IRA as long as the IRA owner signs
FALSE: Our Royal Power of Attorney documents do not support retirement accounts; the Member would need to provide Outside Source POA.
True or False: I can use my HSA to pay for the medical care of any friend or family member
False: You can only use your HSA for yourself, a spouse, or an eligible dependent.
TRUE OR FALSE:
A Member can make a prior year distribution to correct any tax implications
FALSE:
Any distributions from an IRA or HSA are reported for the year they were taken
Royal is required to provide this tax form to all IRA owners by January 31 which show their contribution information and year end balance.
What is a 5498-FMV?
This is the movement of assets from a Qualified Retirement Plan (such as a 401k) with the check made payable to the financial institution
What is a Direct Rollover?
This type of transaction is a taxable and reportable movement of money from a Traditional IRA to a Roth IRA
What is a conversion?
This type of account is opened at Royal to house a Members information so that an HSA can be opened and reported properly
What is an HSA Plan?
This retirement code is used when a Member makes a charitable distribution
What is a Regular Distribution
The reason Royal waits until May to issue 5498 and 5498-SA forms
What is we allow Members to make prior year contributions?
The movement of funds from an eligible employer-sponsored retirement plan (QRP) paid to the owner and moved to this IRA within 60 days of receipt.
What is an Indirect Rollover?
This type of movement of assets corrects a current or prior year contribution that may have been made to the wrong type of IRA
What is an IRA Recharacterization?
TRUE OR FALSE:
The interest that is earned in a Members HSA checking or certificate is reportable and will generate on their 1099INT tax form.
FALSE: All Interest earned in an HSA is 100% tax deferred.
TRUE OR FALSE: When a Member inherits a Traditional IRA those death benefit distributions are NOT taxed
FALSE: Even though the funds were inherited, since it was a Traditional IRA the funds will still be subject to taxes
TRUE OR FALSE:
A Member must have a copy of their 5498 and/or 5498-SA before they can proceed with filing their taxes
False. 5498's are for informational purposes only. Members should be keeping track of their contributions.
When a Member is transferring IRA funds to Royal, the Team Member should add these specifications within the "Awaiting IRA/HSA funds" restriction. (2 parts)
What is account type and current rate?