Contributions
What is the IRA contribution limit for 2018?
$5,500
What tax form are distributions reported on?
1099-R
How many transfer can be done in a year?
No limit
What type of IRA has both employer and employee contributions?
Simple IRA
What department can provide a copy of a paid RJ check?
Bank Reconciliations
What are the three ways a client can make a contribution to their IRA?
Cash or cash equivalent, credit card or direct deposit of tax refund
How much is the premature distribution penalty?
10%
What is the penalty for missing an RMD?
50%
What is the deadline to make an employer contribution to a SEP IRA?
Employer tax filing deadline plus extensions
What are the two exceptions to the like-title transfer rule?
Death & Divorce
John and Sara are married filing jointly and they both want to make a full 2018 contribution to their Traditional IRA. They are 48 years old and they both participate in an employer plan at work. Their MAGI is $150,000. Can they both make full contributions to their Traditional IRA? Why or why not?
Yes, because they are under the age of 70 1/2 and they have earned income.
What are the four ways a client can receive their distribution?
Check, ACH, Wire & Journal
What is the deadline to remove an excess contribution timely?
Tax filing deadline plus extensions
What is a SARSEP?
Salary deferred simplified pension plan set up before 1997 that allows for employee deferrals, employer contributions and regular IRA contributions.
What accounting firm does RJ work with to file the 990-Ts for our IRAs with UBTI?
PricewaterhouseCoopers
Peter is 75 and wants to make a full contribution to his Roth IRA. He is not married and he currently earns $28,000 as a Wal-Mart greeter. Can Peter make a full contribution to his Roth IRA? Why or why not?
Yes, because he still has earned income and his MAGI is below the contribution threshold
Jamie is 25 years old and decides to take a premature distribution from her Simple IRA. Her Simple IRA has been open for 6 months. How much will Jamie be penalized for this distribution?
25%
What two options does a spouse beneficiary of an IRA have that a non-spouse beneficiary does not?
Treat as Own and IRA rollover
Janice Smith works for Smith & Sons Electric. She made $50,000 in 2017. Janice also participates in the company's SEP IRA and the company contributes 25% of compensation. How much can her employer contribute to her SEP IRA as a 2017 contribution?
$12,500
Who is the person responsible for running a qualified plan?
Plan Administrator
Jay and Sally are married filing jointly and they both made full $5,500 contributions to their Traditional IRAs. Jay participates in an employer plan at work; however, Sally does not. Can Jay and Sally both deduct their contributions if their MAGI is $180,000? Why or why not?
Sally can deduct her contribution because she is not an active participant and their MAGI is below the deduction phase-out threshold. Jay cannot deduct his contribution because he is an active participant and their MAGI is above his threshold.
Les is 67 and his Roth IRA has been open for 3 years. If Les decides to take a distribution from his Roth, what type of distribution will it be?
Non-qualified because the Roth has only been open for 3 years.
Leslie and Tim are married filing jointly. Leslie is a stay at home mom; therefore, she has no earned income. Tim earns $50,000 a year. Can Leslie make a full contribution to her Roth IRA? Why or why not?
Yes, because they are filing a joint tax return and Tim earns enough to make a full contribution to both Roth IRAs.
Mary is 61 and wants to take a distritbuon from her Simple IRA. Her Simple IRA has only been open for 6 months but Mary really needs the cash. How much of a penalty will Mary have for taking this distribution?
None
What type of account has both traditional IRA and employer contributions?
SEP