Retirement Accounts
How much is the annual contribution limit for retirement accounts if the shareholder has more rhan one IRA listed under their SSN?
$6,000 per individual, or $7000 if the are age 50+
What is the standard rate for NRA withholding?
24%
What is the difference between short-term and long-term capital gains?
Short-term: held for up to one year, taxed as ordinary income
Long-term: held for more than one year and taxed for most s/h at a rate of 15%
What document is needed if the beneficiary on a TOD account is claiming their share after the account owner has passed?
TOD Beneficiary Claim Form
How does a s/h obtain a medallion guarantee stamp?
From their bank or brokerage
At what age must you begin taking your RMD from your IRA?
72
How does a s/h have Type B backup withholding stopped on their account?
Send in IRS Form W-9 with their correct SSN
How are dividends generated?
What additional paperwork is needed if someone is opening an estate account for a deceased s/h?
Letters testamentary/appointment if personal representative naming them to handle the estate
What tax form is used to report cost basis?
1099-B
What is the penalty if a shareholder exceeds the contribution limit for the tax year?
6% on the excess amount and any earnings associated with the excess amount
What is the minimum amount if a s/h decides to take TEFRA w/h from a retirement distribution
10%
Which fund type has the investment objective of stability and preservation of capital?
Money Market
If one signer on a JT TEN account has passed, what form does the surviving owner need to send to have the deceased s/h's name removed from the account?
Change of Registration Form
what is the date range for a prior year contribution to a retirement account?
January 1st - April 15th
How long must money stay in a SIMPLE IRA before it can be withdrawn/rolled over without penalty?
Two years
Where would you find a listing of each state's w/h requirements/exceptions?
State W/H Matrix in the service center DOX site
Name the three types of fixed income fund in order of least to most risk
government, municipal, corporate
What document listed the authorized signers on a corporate/institutional account?
Corporate Resolution
Up to how many beneficiaries can be listed on a TOD account?
Six
What two criteria must be met in order to take a qualified distribution from a Roth IRA?
Account must be open for at least five years and the s/h must be at least age 59 1/2
What do we mean by "gross" vs. "net" w/h on IRA distributions?
Gross = w/h taken from the transaction amount
Net = w/h taken from the remaining balance
What is the difference between an iShares ETF and an iShares Index Fund?
ETFs trade like stock and price changes throughout the day, tracks index rather than owning securities
Index fund is also a passive strategy but is an open-end fund that owns securities and is priced once per day
If a s/h wants to move money from a Traditional IRA to a Roth IRA, what form would we send them?
Roth IRA Conversion Form
Whose SSN is used when opening a UGMA/UTMA account?
The minor's