Acronyms and Study Short Cuts

Question 1

What are the components of LA CHAIR DEF?

Answer 1

Life Annuity

Corrective Dist
Hardship With
Adoption (Birth)
Install over 10 years
RMD

Defaults on Loans

Question 2

When it comes to deciding what to do at retirement with 401k Funds, what is the KEY?

Answer 2

PLAID

Question 3

What is the KEY “PLAID” used for?

Answer 3

Distribution options at retirement.

Question 4

What are the components of “PLAID”?

Answer 4

Partial Lump Sum
Lump Sum
Annuity
Installments
Do nothing

Question 5

What does the key “RACHAL” stand for?

Answer 5

Distributions not subject to 20% Tax WH

Question 6

What is the key for Distributions not subject to 20% Tax WH?

Answer 6

RACHAL

Question 7

What are the types of distributions in the key, “RACHAL”that are not subject to 20% tax withholding?

Answer 7

RMDs
Adoption/Birth
Corrective Distributions
Hardship Withdrawals
Annuities-Life

Question 8

What does the Key “Spoil under 10” refer to!

Answer 8

Distributions that can be rolled into an IRA.

Question 9

What are the distributions in SPOIL under 10, that can be rolled into an IRA?

Answer 9

Single Sum Death Benefit paid to Beneficiary

Partial W/D paid as a Single Sum

Offset (Loan)

Installments over less than 10 yrs

Lump Sum Distribution

Question 10

What does the KEY, “La CHAIR Def” stand for?

Answer 10

Distributions that can Not be rolled over

Question 11

What is the key “A QT SCORED BM” used for?

Answer 11

Distributions that are exempt from 10% early withdrawal penalty

Question 12

What distributions are not subject to the 10% early withdrawal penalty?
Using ( QT SCORED A BM)

Answer 12

QDRO
Taxable portion of Life Insurance

Security ER Div Payments
Corrective Distribution
Opt Outs (90 day EACA)
Reservist Qualified Distribution
Equal payments over life following Sep of Service
Disabilty

After age 55 Separation

Benefit-Death
Medical Expense (significant)

Question 13

What is the Key for Distributions that are not exempt from the 10% tax on early distributions?

Answer 13

PHIL(ER)

Question 14

What are the distribution types that are not exempt from the 10% early distribution tax?

Answer 14

Plan Termination (for those under age)
Hardship
Involuntary Distribution
Later Distribution of reinvested Dividend payments on ER Secuities

Question 15

Loan availability Formula/ Side A

Answer 15

.5(VB)-OLA=

VB is Vested Balance
OLA is Outstanding Loan Amount

Question 16

Loan Availability/ Side B

Answer 16

$50K- (Greatest 12 Month Loan Balance)