Estate Planning Flashcards
What’s included in the gross estate?
Property owned by decdent
General POApointment!
Life insurance DB when policy transferred w/in 3 years
Joint Tenancy property (half or percentage depending)
Joint and survivor annuities
Retained life interests
Retained power to amend or revoke
Revisionary interest
Gift taxes paid within 3 years of death
Are proceeds of life insurance included in the estate?
Proceeds that are a result of your death and received by the executor ARE included
If any incidents of ownership of the policy. Any rights
Is QTIP property included in gross estate?
Yes
What is at the alternate valuation date?
Executor must make this election
Either Date of death or alternate date
Can only use it if the election lowers the gross estate and the estate tax due
Election applies to all assets in the gross estate except for
- wasting assets
- assets disposed of between death and AVD
What is a wasting asset?
Annuity
Patent
What are deductions from the gross estate?
A Admin (lawyer fees, court costs, etc)
B Burial (funeral expense)
C Causalty losses during administration
D Debts (mortgage, cc, etc)
E Last medical expenses
What is the estate tax formula?
Gross estate
less deduction
Equals adjusted gross estate
less marital deduction
less charitable deduction
equals taxable estate
Plus post ‘76 gifts - added back to gross up
equals tentative tax base
What are tax credits for estate tax?
Prior transfer credit
Estate tax credit
Foreign death taxes credit
What happens to holding period for inheritance?
Always goes to long term
What are requirements for a donor to make a gift?
Competent
Must have the intent to make a voluntary transferred
ex: not a gift if sold a jewelry box and there was accidentally a ring in it
What are requirements for a person to receive a gift?
Competent
Take the delivery
Accept the property
What are types of gifts?
Direct
Indirect (paying someone’s med expenses)
Complete
Incomplete (trust)
Reversionary interests
Net gift - when the donee agrees to pay the gift tax
How are gifts valued?
ON the date of the gift
Real estate - appraisal
securities - valued at the average high and low trading price for the day
Bonds - PV of expected future payments
Your gift may be discounted if there is a lack of marketability, liquidity, or control (ex: closely held business)
What is the super annual exclusion?
Specifically for a non-US spouse
What are the rules for split gifts?
Requires gift tax (form 709)
married spouses can elect to split gifts
Must be elected for all gifts that year
Only counts for the time they were married
What is a future interest gift?
What is a crummy provision?
Allows the trust beneficiary to withdraw some o any contribution to a trust for a limited period to create a present interest
Typically 30 days
What is a qualified transfer?
a payment for someone else paid directly to qualified educational institution or medical care
Must be paid directly
DOES NOT count toward annual exclusion
What are not gifts?
Alinomy
Support payments
Transfers in a business setting (these are compensation)
What is the marital deduction for gift tax?
unlimited as long as a US citizen
How are charitable gift
What is the amount of imputed interest on a below-market loan?
0-$10k — none
$10,001- $100k — Lesser of net investment income or interest calculated using AFT less interest student loan
-> if the NII is < $10k, $0 imputed interest
> $100k interest calculated using AFR less interest
What is a crummey provision?
The trust bene can withdraw from the trust for 30 days after the contribution
Used so that the gift to a trust is considered a present interest
What transfers don’t result in gift tax?
Gifts to political organization
Qualified transfer payment to education or medical
Payments for legal support
Payments as a result of divorce decrees
Transfers within a business setting
Unlimited marital deduction
Transfers to charities
When is a payment to education a qualified transfer for gift tax purposes?
If it’s made directly to the institution for tuition
does not include room and board, books, supplies, etc
What is the allowable transfer for non-us spouse to avoid gift tax?
$164,000 annually
“Spousal super annual exclusion”
When must the gift tax return be filed in the event that the donor dies in the year that he made the gift?
No laster than the due date, including extensions, of the estate tax return
When is a life insurance policy included in the gross estate?
When they own the policy
When their estate is the bene of the policy
If someone transfers their policy, then dies within 3 years, the proceeds are included in the gross estate..
When are annuities included in the gross estate?
Not when it is a straight single life annuity
When it’s a survivorship annuity, the value of a comparable policy on the second annuitant is included in the first annuitants gross estate
Note if both annuitants contributed to the annuity, then the gross estate of the first to die will only include the proportion of what he initially invested in the annuity
What is a available discounts for closely held businesses in terms of their valuation on date of death?
minority discount (your client owns minority share)
lack of marketability discount
blockage discount (If you own the majority of shares)
key person discount
What is the FMV of a security at a decedents death?
the average of the high and low trading price on that day
if the valuation date is a weekend, the valuation of the financial security is the average of the applicable values for the trading day before and the trading day after
What is deductible from the gross estate?
Funeral expenses
last med expenses
admin expenses
debts of the decedent
losses during estate administration
What is abatement?
It’s when there is a reduction of the inheritance. Ex: If someone says they are going to leave each kid $100k, then they die and they only have $200k.. The kids will receive less than $100k each
What is ademption?
When someone leaves something in the will, then when they die they don’t have it anymore.
Ex: “Leaving antique car to kid..” Then they sold the car and forgot to update will
Donee will get nothing
What are for someone to create a valid will?
Age 18
Sound mind
What is Durable General Power of Attorney?
Durable means it survives incapacity
General means it’s broad rights
What is a holographic will?
In your own hand. Must be in handwrting
Signed and dated by testator
what is a nuncupative will?
Oral dying declarations
Not valid in most state
Must be in front of sufficient witnesses
What is the survivorship clause?
Requires the bene to survive the decedent for a certain period of time in order to inherit
typically 6 months.
What is the disclaimer clause?
If the inherited disclaims, then the assets will go to X
The decedent is defining who gets in the case of disclaiming
Disclaiming rules
Disclaiming party can’t benefit
Must be in writing within 9 months
Person disclaiming can’t direct where the property goes
What is a Power of Appointment versus Power of Attorney?
POAttorney
- Ends at death
- May be general or limited
- may be revoked
- Can include a power to appoint but does not have to
POAppointment
- Included in a trust or POAttorney to allow the holder to direct assets
- Can survive death of grantor
- General POAppoinment means you can appoint to self, creditors, your estate, estates creditors, etc
- Crummy provision is most common. You have the ability to appoint assets to yourself
-Limited POAppointment is the ability to give money to anyone but yourself
-If you die with a GENERAL POA then those assets are taxed to you
What is probate?
Retitles assets
Advantages
- clear title
- Open orderly legal process
- Limits the access creditors have (limited amount of time)
Disadvantages
- costly
- delays - 6-12 months
- Publicity
When will something be included in probate?
No survivorship feature
No beneficiary listed
- sole ownership property
- tenancy in common prop
- community property
- invalid or no named bene
What avoids probate?
Life Insurance
Annuities
IRAs, SEPS, SIMPLES, Qualified plans (w valid bene)
Pay on Death accounts
State titling law if
How are different titling options treated at death?
How is JTWROS property treated at death?
The % that you contributed is included in the gross estate (must be able to prove it)
- If spouse, it’s always 50%
Does not go through probate
Only the decedents half steps to FMV
How is community property treated at death?
NO right of survivorship
50% included in gross estate
50% include included in probate
Steps to FMV at death
How is tenancy by the entirety property treated at death?
Not included in probate, there is a survivorship feature
50% included in gross estate
FMV stepped up for the half of the decedent
How does a net gift work?
You gift an asset but and the donee must pay the tax
If the gift tax paid is more than the adjusted basis, the donor has taxable income
What are rules for split gifts?
if you elect split gifts, all gifts made that year must be split
Requires form 709 for both spouses
must be married
Can use the split gift election in the year of death and on the final tax return
Can’t split with a dead spouse if you remarry in the same year
How is a gift of future interest taxed?
NO ANNUAL EXCLUSION
Can use the crummy provision to make it a current interest. Typically 30 days
What problems could come from a Crummey provision?
Need to be careful setting it up.
Avoid multiple beneficiaries in one trust with a crummy provision
Multiple beneficiaries may cause a taxable event from one bene to another when their crummy provision lapses
Make sure there are separate trusts or sub accounts
How are gifts to a charity taxed?
For estate and gift tax - unlimited deduction
For income tax - deduction based on type of contribution and organization
What are gift tax and estate tax forms?
706 - estate (6 feet under)
709 - gift
How do you calculate gift tax?
$345,800 taxes is due on the first million gifted.
40% on any gift over $1m
So if gifting $100m – $345k + (.4*$99m)
Using the tax lifetime credit versus tax exclusion:
$12,060,0000 Lifetime credit
$4,769,800 credit
Should you gift an asset in a loss position?
NO! Sell it instead
Who should you gift property that has the greatest appreciation potential?
The youngest donneee
Who should you give income producing property?
The poorest person in the lowest marginal income tax bracket.
Who would be the best to gift property that has the highest growth?
Give a charity whichever has a lot of growth because they won’t have income tax consequences.
What can you back out of estate taxes to get the adjusted gross estate?
Admin expenses (1041 or 706)
Burial (funeral)
Casualty losses (1041 or 706)
Debts
E (last medical expenses) - you could take these on the 1040 or 706*
*better on the 706 because no AGI limits
When would a POAppointment not include the property in your gross estate at death?
(HEMS)
Health
Education
Maintenance
Support
or
Limited by the 5 by 5 ruler
How is stock valued for someone who died?
Average the high and low of the stock the day before and the day after
Multiple the day average times the number of days away from the opposite trading days
Divide by total days
Don’t include weekends or trade day!
How is life insurance valued at death?
If policy is owned on someone else:
- Depends on the pay status of the premium
–> If paid up, include the replacement value in the gross estate
–> if it is premium pay status, include the interpolated terminal reserve + unearned premium
If the policy is owned by the decedent, include the entire death benefit
When does someone have incidents of ownership over a life insurance policy?
If they can:
-can name or change a bene
-surrender or cancel the policy
-receive dividends
-borrow against the cash value
-pledge the policy as collateral
-assign or revoke these rights in others
What is the alternate valuation date?
6 months after date of death
Executor must make the election by the filing date of the estate
It must lower both gross estate and estate tax due
Applies to all assets in gross estate except
- wasting assets (notes, patents, annuities)
- Assets disposed of between death and AVD (sold home)
*wasting assets are assets that decrease because of time
What is the marital deduction when a husband dies and leaves a $1m home with a $200k debt to his wife?
Marital deduction on $800k only
Debt was backed out of gross estate
Wife needs to get a new loan
What are requirements for marital deduction?
Property must be included in the gross estate
Must be transferred to the spouse (not a trust that goes to someone else)
Must eventually be included in the spouses estate
EXCEPTIONS:
- 6 month survival contingency
- Terminable interest with spouse having general POAppointment (A trust)
- QTIP trusts (B trust)
- CRT where spouse is the only nonchartiable bene
The exceptions above allow for the marital deduction even though technically the property is not transferred to the spouse
What happens if the decedent had a non-citizen spouse?
The non-citizen has to become a citizen within 9 months OR
A QDOT - qualified domestic trust
- has at least one US trustee
- Prohibits distributions unless the trustee has the right to withhold taxes
- Trustee must keep sufficient assets to pay taxes
- Executor elects marital deduction
What are the prior transfer credits for estate taxes?
If the second spouse dies within 10 years
What is the foreign death tax credit?
A credit for the taxes you paid on property outside of the US
Credit is limited to the lesser of what US or the foreign country would have charged
When is the estate tax return due?
Form 706 due within 9 months after death
Extension to file for 6 months (no extension to pay)
What is the penalty for late file/payment of estate taxes?
Failure to file - 5% per month up to 25%
Failure to pay - .5% per month up to 25%
Failure to file is reduced by failure to pay
What is estate tax portability?
You can port over your dead spouses unused estate tax credit
use the dead spouses credits first
if you remarry, you lose the credits
What are IRD assets?
Income respect of decedent
Income they have automatically after they die..
rent, IRAs and qualified retirement accounts
Dividends declared but not recieved
What is not considered a taxable gift?
Legal support
Qualified transfers - direct payments to medical/education
Below market rate loans (under
Transfers to US citizen spouses (marital deduction)
What is the difference between a SCIN and private annuity?
Private annuity
- private but (usually) related parties
- payment for life
- No collateral interest (you trust your kid will pay)
- no deductibility on interest for the buyer
SCIN
- payments for a term
- collateral/secured interest (this makes the payer liable!)
- SCIN will allow for an interest deduction if the property allows for it (mortgage)
When would someone use a private annuity?
They aren’t in great health and they are trying to pass on property. Most likely they will die before the annuity breaks even so the buyer is getting a discount
What is a family limited partnership?
Partnership created to transfer assets to the younger generation
You become a 1% general partner
99% limited partners are the children
You take advantage of minority shares and marketability discounts
Use when the transferor wants to maintain control while gifting the asset
What is the spendthrift clause?
The bene can’t promise the assets to anyone
How are trusts taxed?
What is a GRAT?
Grantor Retained Annuity Trust
Pays fixed annuity to a grantor for a defined term. FIXED - ex: 6%
Fixed term - NOT FOR LIFE
Remainder interest to bene
You’re making a gift of the PV of the remainder interest
Grantor should outlive it.
No annual exclusion (unless crummy)
GRUT - same except that it’s a fixed percent paid out instead of flat dollar amount
A GRAT would be better if your goal is to pass on as much as possible. GRUT better for growing income to grantor
What is a QPRT?
Like a GRAT with property
You put a propery in a trust. Use it until you die then the remainder passes on.
Gift is equal to PV of remainder interest
QPRTs can only hold one residence
Any income is taxed to the donor
You may only own 2 QPRTs
The donor retains all tax advantages
For personal homes
This would be good for lowering the potential tax paid when the owner of the house dies. By putting it in a QPRT they are locking in the gift before potential years of appreciation
What is an ILIT?
Irrevocable Life Insurance Trust
Uses a crummy provision
this removes the policy from the gross estate
This trust is not REQUIRED but ALLOWED to loan money to the estate
What is a 2503(B) and 2503(c)?
For minors
irrevocable
have expenses for filing tax returns and quarterly tax paymetns
2503(B) bad boy.
- Holds assets for lifetime
- must distribute income annually
- Annual exclusion is available for the PV of the income interest
- Simple trust
2503(C) Choir Boy
- Allows accumulation
- Complex trust
- Annual exclusion is available for the contribution
What is a power of appointment trust?
A-Trust
Power of appointment trust that gives spouse general power of appointment
- therefore it avoids the terminable interest rule
- So all the asset qualify for the marital deduction
When first spouse dies- Included in GE MINUS Marital Deduction
When 2nd spouse dies, included in their GE unless appointed to GE
What is a B Trust?
AKA bypass trust, credit shelter
Taxable to the beneficiaries (children)
Spouse gets income, HEMS, 5 by 5
But this would allow for the assets to NOT be included in the spouses estate
Might be used when:
- spouse is a spendthrift and you want to make sure kids get some
When first spouse dies, included in gross estate.
2nd spouse dies, not included in gross estate
What is a C trust?
AKA QTIP
Property qualifies for marital deduction
Must provide trust income for life
Simple
Spouse must be able to compel the trustee to sell non-income producing assets
What is a CRAT?
Charitable Remainder Annuity Trust
FIXED payment >= 5% of initial FMV
Annuity must be paid annually
Life OR term allowed - max 20 year term
No contributions after inception
Beneficiary can be changed as long as still a chartiy
What is a CRUT?
Charitable remainder unitrust
Flexible
Fixed PERCENTAGE of at least 5%
What is a NIMCRUT?
Must pay a minimum income amount. If the trust doesn’t generate enough income, the NIMCRUT pays it out next year
What is a pooled income fund?
Contributions are pooled in a trust maintained by the charity
income for life to donor
Remainder to charity
Good for small gifts
What is a charitable lead trust?
Can either be a fixed or uncertain payout
Income stream goes to the charity
Remainder goes to the kids
When can you use installment payments of estate tax?
If your wealth is in a closely held business
- can extend the payment over a 14 year period
- first 4 payments are interest only, followed by 10 payments that amortize the estate tax liability over the payment
- the value of the business interest must be at least 35% of the adjusted gross estate
When can you use special use valuation?
Section 2032A
You own property with a farm and it’s still a farm, but would be more valuable as condos
Use section 2032 to reduce the value of the property up to $1,230,000
Must have managed it 5 out of 8 years before death
The property must exceed 25% of gross estate
Heirs must continue to use it
What is a section 303 stock redemption?
If a shareholder dies, the small business will purchase his stock.
- he gets capital gains treatment
- he must be 35% owner or more
- the business must have the cash to redeem the shares
- the redemption is limited to an amount that cannot exceed the death taxes of the estate plus funeral and admin expenses
- can be preferred or common shares
What is GSTT?
40%
Who is a non-skip vs skip person?
Skip:
- lineal descendents two or more generatons younger
Is the right to change charitable beneficiaries of an ILIT life insurance policy considered incidence of ownership?
No - the charity could no longer exist.
Incidence of ownership for an ILIT include:
- pull cash from policy
- right to assign a policy - even if it’s only to a charity
- the right to surrender the policy - even for terminal illness
- change beneficiary (non charity)
What is a totten trust used for?
To avoid probate
Similar to a TOD account
Assets are still included in gross estate
What dollar amount of an owned life insurance policy is included in the owners gross estate when the owner is still paying premiums?
If the policy is in pay status:
The value of the interpolated terminal reserves plus any unexpired premium
How does a survivorship clause longer than 6 months impact the marital deduction?
If the survivorship clause is longer than 6 months, no marital deduction!
How is a CRAT included in the gross estate at death?
Included in the gross estate and then deducted from the adjusted gross estate via the charitable deduction.
Where can unpaid medical expenses be deducted?
On 1040 or 706
NOT 1041
Where does the executor deduct his fees?
Form 706 or 1041
Can you add money into an established CRAT, CRUT, or CLUT?
NOT IN A CRAT! It will mess up the annuity
CRUT and CLUT ok
What’s the minimum that the charity must receive from a CRAT/CRUT?
They must be expected to receive the equivalent of 10% of the value regardless of the date of the inception of the CRUT and the CRAT.
Within what range must the interest income be in a CRAT and a CRUT?
CRUT: between 5-50% of annual value
CRAT: Between 5-50% of original value
Are political organizations charitable?
No!
What is a codicil? Devisee? Legatee?
A Codicil is a document used to alter a will. A Devisee is a gift of real property through a will. A Legatee is a person who inherits property under the will.
What are requirements for a holographic will?
handwritten, signed, dated
Doesn’t have to be witnessed
not valid in all states
What is a mutual will?
AKA sweetheart will?
Two persons who leave all of their property to each other.
Who are the parties to a power of attorney?
Principal
Agent
What is a pour over provision?
The “pour over” provision sweeps assets outside of a trust into the trust.
Provide for the transfer of assets from an estate into a trust created prior to the “pour over” provision.
What are pre requisites for gift splitting?
- Both US citizens or resident aliens when gift is made
- Must be married
- Each spouse consents in writing
- Only one return is required
What is necessary for a completed death to have occured?
Intent, delivery, acceptance and relinquishment are all requirements for a completed gift to occur.
What is required for a deed to effectively act as a “will substitute”?
- competent grantors signature
- there must be delivery of deed during the grantor’s lifetime with an intent to give
Mike made an irrevocable transfer of legal title of solely owned property to his niece, Bonnie, and retained a minority interest in that property after the gift. Is this a completed gift?
NO
What is section 6166?
Installment payments of estate tax liability
must make up 35% of their estate
What empowers an executor to act as an agent of a probate court?
Letters Testamentary
Does tenancy by entirety require probate?
No!
Does community property go through probate?
Yes!
Always 50% of the value even if one party contributed more
When would life insurance need to go through probate?
If there is no named bene or the bene is the estate of the decedent
Does property held tenants in common go through probate?
Yes! Even with a spouse
What types of trusts still might go through probate?
Credit shelter trust created by testament
QTIP
GPOA
These are testamentary trusts and therfore created by a Will, so they have to go through probate.
What types of property transfer at death by contract?
property with a bene designation in the contract
Roth IRA, IRA, LI, etc
Other property transfers by titling law (JTWROS) or state trust law (GRAT)
Is propery acquired by gift or inheritance during marraige considered community property?
No! Unless they commingled it like in a joint account
What happens to the basis of community property at death of one of the owners?
BOTH halves get a step to basis at FMV
How can tenancy by the entirety be terminated?
Death, whereby the survivor takes the entire tenancy.
Mutual agreement.
Divorce, which converts the tenancy into a tenancy in common or a joint tenancy.
Severance, whereby one tenant transfers his or her interest to a third party with or without the consent of the other tenant.
How do you calculate GST tax due after someone has used up their exclusion?
First multiple gift by 40% – this is the standard gift tax highest threshold
Then multiple the above amount by 40%
Ex: GST on $1m gift:
The GST tax of $400,000 is added to the gift for the determination of the gift tax. Thus, $1,400,000 × 0.40=$560,000.
Are intervivos trusts revocable or irrevocable?
Intervivos trusts can be either revocable or irrevocable, but if revocable, they become fully irrevocable at the time of the grantor’s death, thus avoiding probate. During life, the revocable trust income is taxable to the grantor and at death of the grantor, the trust assets are included in the grantor’s gross estate.
Features of a QTIP include:
Qualified terminable interest property
Strategy for getting around estate taxes. The husband leaves estate to the QTIP trust and no estate taxes are paid on it until the surviving spouse dies. Then the assets go to wherever the husband wanted them to go.
- All trust income must be paid to the surviving spouse at least annually
- On death, assets pass to bene
- the personal representative has discretion over the amount and selection of the decedents assets to be placed into the QTIP trust
What is a sale and leaseback arrangement good for?
Client wants to retain use of assset
Has cashflow problems
in a high income tax bracket
wants to divert income
rental expense can be deducted
commonly used with highly and rapidly appreciating assets
Doesn’t reduce debt
What is the sprinkling provision?
Sprinkling provision is a provision within a life insurance agreement that allows the policy’s trustee to spread the death benefit around to beneficiaries at his or her discretion.
What is a bypass trust?
At death of the first spouse, the assets are split into two separate accounts (a trust and b trust)
The A trust (aka marital trust) belongs to the surving spouse
The B trust is the assets of the dead spouse. The surviving spouse doesn’t own those assets but can access the trust and recieve income from it. Put the $12M in it to use up the dead spouses exclusion
How do you value life insurance at death?
What are the tax consequences of the following assuming Lisa dies?
$400k DB Insurance policy
Bob: owner
Bene: Steve
Lisa: Insured
Bob has gifted $400k to Steve
If you die before the end of a QPRT term, how much of the house is included in your GE?
ENTIRE FMV!!!
Is the value of an UGMA included in the custodians gross estate?
Yes: The value of an UGMA account is included in the custodian’s gross estate if the custodian is the legal guardian of the child and dies before the child takes control of the account (which occurs at the age of majority). If the child had died, the child would include the UGMA in his/her own gross estate. However, in this scenario, the child is still alive.
Do IRAs get a step up in basis on death of the owner?
NOOOOOOO!!!! n IRA (both traditional and Roth) is a type of IRD asset, and therefore does not get a step-up in basis at death. Therefore, the basis of the Roth IRA would be $100,000.
Do annuities get a step up in basis on death of the owner?
NOOO!!!! An annuity is a type of IRD (income in respect to a decedent) asset, and therefore does not get a step-up in basis at death. Therefore, the basis of the annuity would be $200,000.
Which states are community property?
What is section 6166?
Special discounting tax benefeit when more than 35% of estate is in a business asset. Section 6166 is that the ownership asset must make up at a minimum of 35% of the estate.
What is the 5/5 lapse?
Clause added to a trust that allows the bene to make withdrawals - they can withdraw the greater of $5k or 5% of the FMV. Having this power allows the trust creator to set limits while still transfering the asset to the bene .
Ex: Trust with $!00k - Can limit withdrawal to $6k and it hits the rules. Or limit to inly withdraw for school, etc
Which 2503 trust requires distribution of all income every year?
2503 B - bad boy. Income is distributed but he does not get control at age of majority
What happens to basis when one of the partners dies in a cross purchase agreement?
In cross purchase: The basis of the dead shareholder steps up to FMV
in entity..
Is a bypass trust a marital trust?
No!
It also could allow for income splitting -
- marital trusts require all income go to the spouse
What are requirements for a FLP?
The partnership interests must receive a pro-rata share of distributed income.
General partners must be adequately compensated for services rendered.
Capital must be a material income-producing factor.
When looking at estate tax add backs..
Don’t forget about the $16k exclusion!
Assuming all exclusions are used up, how would you calculate GST?
You pay GST on the gift given PLUS the amount of gift tax paid.
So If you give $1m, gift tax is $400k. You’ve given a GST of $1.4m! GST would be $560k
If you donate over the annual exclusion to a charity, do you have to file a gift tax return?
No
Which of the following empowers an executor to act as the agent of a probate court?
Letters Testaamentary
Entity Purchase is AKA
Stock redemption
Do Roths have an RMD?
Roth IRA - NO
Roth 401k - YES
Can eligibility for qualified plans be different?
The eligibility requirements must be the same for all employees. All other statements are accurate.
