RMD
The acronym "RMD" stand for this
What is Required Minimum Distribution?
A client can be walked through the modern Roth conversion pathway, under the "holdings" page. When they want to withhold this percentage for taxes.
What is 0%?
This year's changes to inherited IRA rules have made calculating Required Minimum Distributions (RMDs) more complex.
What is the year 2020?
In this type of rollover, funds move directly from one retirement account custodian to another without the client taking possession of the money.
What is a direct rollover?
This form reports distributions from IRAs
What is Form 1099-R?
This type of IRA is NOT subject to RMDs.
What is a Roth IRA?
An 85 year old client who is seeking to perform a roth conversion must ensure they satisfy this before converting to their roth IRA.
What is satisfy their RMD?
A client calls in to discuss how to calculate their RMD. They mention that their inherited IRA is from their father. Their father inherited this IRA from his mother before it was passed down to the client you are speaking to. The best way for the client to calculate their RMD would be
How to consult with a tax pro?
In this type of rollover, the distribution is paid directly to the client before being rolled over into another retirement account.
What is an indirect rollover?
This form reports IRA contributions, incoming rollovers, and incoming conversions made during the year.
What is Form 5498?
A 75 year old client that is subject to RMDs wants to reduce the amount included in taxable income. This strategy is commonly used and known by this three-letter acronym.
What is a QCD (Qualified Charitable Donation)?
These 3 tax forms should be mentioned when walking a client through a "Backdoor Roth Conversion"
What is Form 1099-R, 5498, and 8606?
Instead of inheriting an IRA, a spouse of the decedent may be able to do this, as long as they were named as the sole beneficariy of the IRA
What is assume an IRA?
Failing to comply with either of these two timing requirements can jeopardize an indirect rollover.
What are the 60-day rollover requirement and the one indirect IRA rollover per 365 days rule?
This IRS form may be used for a client who qualifies for an exception to an early distribution penalty.
What is Form 5329?
If a client questions how much they have distributed and withheld in their traditional IRA. These areas of VG's website are the most useful spots to walk them through their distribution questions.
What are the RMD Summary and Retirement Summary pages?
This Latin phrase, meaning "in proportion," is used to explain why pre-tax and after-tax IRA funds cannot be separated once they are mixed together.
What is pro rata?
A client who inherits an IRA post 2020, would likely be subject to this rule, unless they are an eligible designated beneficiary.
What is the 10 year rule?
These two tax forms are commonly associated with a completed indirect rollover into an IRA.
What are Forms 1099-R and 5498?
This form is generated by VG by the end of May and is strictly for informational/recordkeeping purposes
What is Form 5498?
These two variables are used when calculating a client's RMD.
What is IRA's previous year end balance & LEF (life expectancy factor)?
A client chooses to withhold taxes on their Roth conversion. They are going to withhold 10% for taxes on their $10,000 conversion. They are converting shares of $VOO. Their settlement fund would need at least ____ in it in order to avoid a NIGO.
What is $1,111.11?
A beneficiary generally cannot complete this transaction using an Inherited IRA, even if they own their own Roth IRA.
What is a Roth conversion?
A client who mistakenly deposits $100,000 into their non-retirement account with the intentions of actually rolling the funds over into their Roth IRA can resolve their issue by performing this
What is an indirect rollover? (If eligible)
This IRS form is used to report nondeductible IRA contributions in an IRA.
What is Form 8606?