Retirement Account Basics
What type of IRA is designed to hold pre-tax contributions that grow tax deferred?
Traditional/Rollover IRA
What is the standard calculation for a client's RMD?
Year-end balance divided by Life Expectancy Factor
How long does a check sent by FedEx take to arrive?
Usually 2 - 3 business days
Tax form that is generated for an IRA distribution?
1099-R
A client requests to move money from their Traditional IRA to their Roth?
Transfer – Client may be referring to a recharacterization or a Roth conversion. These calls would be conferenced / transferred to Retirement Complex.
What type of IRA allows for tax free withdrawals in retirement if they are qualified?
Roth IRA
When do clients typically need to satisfy their RMD by?
Before December 31st
What type of security must a client go through to have us process a special payee check?
VV or OTP
Tax form generated for IRA contributions?
5498
A client is requesting to remove a contribution because it was not allowed or ineligible?
Transfer - Client may be referring to an Excess Removal. These calls would be conferenced / transferred to Retirement Complex
What type of IRA requires a RMD when a client hits a specific age?
Traditional/Rollover IRA
When is the latest a client can defer their first RMD distribution?
Clients may delay their first RMD until April 1 of the following year
How long must a client wait if they changed their phone number or just signed up for security codes before eligible for OTP?
7 calendar days
Tax forms generated for an IRA Asset Transfer
No tax form is generated.
A client requests a distribution from the 500 Index fund in their TA nonretirement and wants to use that to contribute into their settlement fund in their Traditional IRA VBA.
Contain. Non-licensed crew can only transact in the settlement fund in a retirement VBA.
What are the requirements to receive tax- and penalty-free distributions of Roth IRA earnings?
The Roth IRA must be established for at least 5 years, and the owner must be over age 59 1/2 or meet a special purpose exception
What happens if a client takes a distribution outside of the RMD auto-distribute service and does not have it adjusted?
They will overdistribute their RMD. The service does not automatically adjust for distributions taken outside of it. These calls will be transferred to a licensed crew member.
What is the time frame for the client to receive the check by U.S. mail?
Generally, 7-10 days through first-class U.S. mail.
What tax form would we generate if a client rolled assets into a Traditional IRA from another institution.
5498
A client is requesting a proportional distribution.
Transfer. Proportional distributions will be handled by a licensed crew member. These calls would be conferenced / transferred to a licensed Retirement crew member.
An exception that allows for the waiver of the 10% early withdraw penalty from a IRA for a first-time home purchase?
72(t) exception
Why do QCDs get a normal distribution coding on a 1099-R?
Since Vanguard does not qualify the charities, it is up to the client to file and report properly.
How long does it typically take for a client’s bank account to be authorized for redemptions after they have entered their micro deposits?
7 to 10 calendar days
What tax form and coding would a client receive for a direct rollover from their IRA to their employer's 401(k)?
1099-R with reason code G
A client calls in and indicates that they missed last year's RMD and would like to take it now?
Transfer – Client missed their RMD, so these calls must be conferenced / transferred to a licensed Retirement crew member.