Retirement Planning & Employee Benefits

Question 1

IRA Prohibited Transactions

Answer 1

• Selling, exchanging or leasing property to an IRA
• Lending money to an IRA
• Receiving unreasonable compensation for managing an IRS
• Pledging an IRA as security for a loan
• Borrowing money from an IRA
• Buying property for personal use with IRA funds

Question 2

Roth Non-Qualifying Distribution Order

Answer 2

• 1st - Contributions
• 2nd - Conversions
• 3rd - Earnings

Question 3

Roth Tax-Free Qualified Distribution Triggers

Answer 3

• Death
• Disability
• 59.5
• First-time home purchase (up to $10,000)

Question 4

Roth Qualified Distribution

Answer 4

• Must meet BOTH 5-Year from account opening AND
• a Qualifying Trigger

Question 5

ROTH &TIRA Penalty Exceptions

Answer 5

• Death
• Disability
• 59.5
• First-time home purchase (up to $10,000)
• Medical insurance premiums while employed
• Substantially Equal Periodic Payments (SEPP)
• Higher education expenses
• Medical expenses in excess of 7.5% AGI floor
• Birth or Legal adoption (up to $5,000)