Retirement Accounts
This type of IRA allows deductible contributions
Traditional/Rollover IRA
How many days does a client have to return funds to complete an indirect rollover?
60 days
Instead of inheriting, a client who is sole primary beneficiary could do this with a deceased spouse's account
Assume the IRA
This tax form would show a client's contributions to their IRA
5498
These are the two pieces of information needed to calculate an RMD
Year-end balance and Life Expectancy Factor
This type of IRA allows tax free distributions when a client reaches 59.5 and has held the account for 5 years or more
Roth IRA
What age must be attained by an IRA owner to be eligible to take QCDs?
70.5
Vanguard's automatic RMD distribution service is NOT available for clients who inherited an IRA after this date
12/31/2019
This tax form would show distributions from an IRA
1099-R
What is the penalty for missing an RMD?
10-50% depending upon when it’s corrected (talk to a tax pro!)
A client’s MAGI determines if they are eligible to contribute to this account
Roth IRA
What is the category of exception that removes early withdrawal penalties under certain situations?
72(t) exceptions
Who is responsible for satisfying the deceased's final RMD (assuming the deceased did not satisfy their RMD prior to passing)?
The beneficiary of the deceased's IRA
When can clients expect to receive their 5498?
The 5498 is mailed to clients by May 31.
What is the Required Beginning Date? (Date when first RMD must be taken by)
April 1st of the year following the year a client turns RMD age
This Vanguard department can assist with client tax form disputes and cost basis issues
Tax Resolution Services (TRS)
What two tax forms will a client receive if they perform an indirect rollover?
1099R and 5498
If a conversation with a client or other information obtained by crew members indicate that an Inherited IRA is IN FACT an Inherited-Inherited IRA, crew MUST...
Add an alert stating this information
Client will need to file this IRS form when they do a Roth Conversion
8606
When a client misses their RMD due to Vanguard error, we can offer this letter
Shortfall letter
A client funded their SEP IRA with a 2024 employer contribution in March 2025. Will this contribution show on their 2024 or 2025 5498?
2025 5498 produced in 2026, because SEP employer contributions are reported on a calendar year basis.
What IRS form should the client file if they are claiming exception to or reporting a tax penalty they must pay?
5329
An individual who is not more than ten years younger than the IRA owner in the IRA owner's year of death is considered what type of beneficiary?
Eligible designated beneficiary
Do clients need their 5498 to file their taxes?
No, the 5498 clients receive is for informational purposes only. Vanguard files a 5498 on behalf of the client to the IRS electronically by May 31st.
A QCD taken outside of the RMD calculate and distribute service will require what action taken by a representative to prevent overdistribution?
An RMD service adjustment (A Year-to-date distribution adjustment) via JTT