Retirement Complex

Small Business

100

The four different plan roles that small business accounts can have

Plan Administrator, Contact with access to banking, contact without access to banking, participant

200

Percent of mandatory withholding applied to in-service withdrawals from an i401k

20%

300

The Matching method for a SIMPLE IRS Employer (ER) Contribution means that employers must contribute 3% in three of every rolling ___ year period.

5 year period

400

The FOUR (4) Small Business Online (SBOL) Call security questions to ask

Caller name, Employer Name, plan address, plan ID (or last four of caller SSN in lieu of plan ID)

500

The most restrictive eligibility requirements for a Sep IRA to be established

-At least 21 years old 

-Has worked for the employer during at least 3 of the 5 years immediately preceding the tax year 

-Has received at least $650 in compensation from the employer in the tax year

Inherited IRA

100

The type of beneficiary eligible to Assume an IRA

Spouse Beneficiary

200

The situation where a Beneficiary might be required or able to utilize the 5 year rule?

Pre RBD non-qualified Beneficiaries

300

The Life Expectancy table number that would be used for an Inherited IRA RMD in IRS 590-B publication

Table 1 (Single Life Expectancy for use by beneficiaries) 

400

The age of the Required Beginning Date for RMDs

Age 72 (70 1/2 for individuals who turned 70 1/2 in 2019 (born before July 1, 1949))

500

The FOUR (4) requirements listed on the "death card" that comprise a qualified Trust

1. Trust must be irrevocable or become irrevocable upon IRA owner’s death.   

2. Trust must be valid under state law.

3. Beneficiaries are identifiable in trust document. 

4. Custodian must be provided with a copy of the trust document or a summary list of the trust’s beneficiaries and conditions by October 31 of year following the year of death. (Vanguard currently scans a copy of the trust document when received, but cannot guarantee compliance of qualifying trust documents.)

Rechar/Excess

100

The deadline date for an excess and a recharacterization. 

April 15, October 15th with extension

200

The penalty percentage for an excess removed after the deadline

6% penalty

300

The different coding options for earnings and contributions removed during an excess on Crave

Current and Prior

400

This transaction type uses LIFO rules when calculating earnings or loss, in general

Excess Removal

500

The two scenarios where a client would need to excess remove an RMD

If the RMD was CONVERTED or ROLLED OVER.

Roth IRA/Conversion

100

Who is eligible to do a Roth Conversion?

Anyone

200

The Tax forms involved in a Roth Conversion

1099-R, 5498, 8606

300

The distribution ordering Rules for a Roth IRA distribution. 

Contributions, Conversions (taxable portion), Conversion (nontaxable portion), earnings

400

Three things that would be filed/ tracked using tax form 8606

1. Nondeductible contributions

2. Distributions from a Roth IRA

3. Conversions to Roth IRAs

500

Two requirements that need to be met in order for a rollover distribution from a Roth 401(k) to be eligible.

1. Attainment of age 59.5  

2. After completion of five years in the plan.

Tax Forms/Publications

100

What tax forms would be involved in a Back door conversion

1099R, 5498, 8606

200

Which IRS publication covers information on Retirement Plans for Small Businesses?

Publication 560

300

What coding is given to an excess removal that is completed after the deadline?

Normal Distribution

400

What are 3 things that would require a client to file form 8606?

Nondeductible contribution to a  pretax IRA, Distributions from a Roth IRA, Conversions from a trad/sep/simple to a roth IRA

500

When would an i401kbe required to file form 5500?

the year plan assets exceed 250,000