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Integrated > Withdrawals > Flashcards

Withdrawals Flashcards

1
Q

Annuitize within 1 year of death of the ppt
Lump sum within 5 years of death of the ppt
Roll money into an inherited IRA

A

Non-spousal Beneficiary

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2
Q

Can remain in plan until deceased would have turned 70.5 then RMDs must begin
Can roll over into an IRA for saving until they reach RMD
Annuitize within one year
Lump sum within 5 years

A

Spousal Beneficiary

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3
Q

What is sent with paperwork for distribution/rollover?

A

Special Tax notice

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4
Q

A copy of the SS award certificate

A doctor or employer’s letter stating the disability

A

Two types of acceptable forms of proof of disability

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5
Q

Two methods of hardship employer has to choose from

A 
Safe Harbor
Reliance method (facts and circumstances)
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6
Q

If take Safe Harbor hardship

A

contributions are suspended for 6 months

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7
Q

Joint and Survivor Annuity

Single Life Annuity

A

PRS Handles

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8
Q

Installment
Fixed Interest
Systematic Payments

A

RAD Handles

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9
Q

Random WD

A

Call Center handles

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10
Q

Excise Tax is applicable to:

A

Money Purchase, Profit Sharing, 401k, 403b

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11
Q

Date of Birth and age turn red at what age?

A

70 1/2

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12
Q

Tax form to use if withdrawal should have an exception from taxes

A

form 5329

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13
Q

Waiting for something and we don’t know when the $$ will leave TRS

A

Pending Approval

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14
Q

$$ will leave TRS next business day

A

Pending

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15
Q

$$ is gone, has left TRS (should see in 4070 when processed)

A

Processed

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16
Q

When is active ppt able to take on-line withdrawal?

A

Must have non-hardship amount available and withdrawal is under $10,000. Plan must allow

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17
Q

When is retired or termed ppt able to take on-line withdrawal?

A

To close account if balance is under $10,000

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18
Q

What are the six types a ppt can roll money between

A

Money purchase, profit sharing, 401k, 403b, g457b, IRA

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19
Q

L O A

A

Letter of Acceptance

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20
Q

When is a LOA required?

A

contract exchange, plan to plan transfer, $ leaving TRS/IRA, any transfer/rollover with roth $$

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21
Q

1099-R

A

reports distributions

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22
Q

5329

A

excise tax form

23
Q

5500

A

ER tax reporting form

24
Q

Same product at beginning and end, transfer assets between carriers with same 403b ER plan, most common type of transfer

A

Contract Exchange

25
Q

Same product at beginning and end, transfer of assets from one 403b plan to another, change of ER sponsored plan, only use this type when ppt want to maintain 12/31 balance

A

plan to plan transfer

26
Q

Before 59 1/2

A

Code 1

27
Q

Exception (QDRO, Corrective Dist)

A

Code 2

28
Q

Disability

A

Code 3

29
Q

Death

A

Code 4

30
Q

After 59 1/2

A

Code 7

31
Q

Rollover

A

Code G

32
Q

Loan default before 59 1/2

A

Code L1

33
Q

Loan Default after 59 1/2

A

Code L7

34
Q

Features of a transfer

A

Always direct with check made payable to new provider, no 1099R, no withholding, unlimited transfers/year, in any amount, no spousal consent, same product at beginning and end, keep money sources maintaining 12/31/86 and 12/31/88 balances. PPT still working, don’t have to meet dist event.

35
Q

Features of a direct rollover

A

May be different product at end, requires ppt to meet dist event, check made payable to new provider, any amount, Spousal consent applys, only one allowed per 12 mo, reported on 1099R with code G

36
Q

Features of indirect rollover

A

May be different product at end, check made payable to ppt and must be deposited within 60 days, standard withholding applies,1099R with code 1 if under 59 1/2, code 7 if over 59 1/2, any amount, spousal consent applies, must meet dist event

37
Q

money would remain subject to 10% excise tax of the prior plan, g457b plan must be able to record keep

A

Rule regarding excise tax on rollover money from a Qualified plan, 403b or IRA going into a G457b plan

38
Q

Money would become subject to 10% excise tax when rolled over

A

Rule regarding excise tax on rollover money from G457b to Qualified Plan, 403b or IRA

39
Q

Rule regarding faxing notarized forms to TRS?

A

notary stamp witness spousal signature, gross distribution less than $50,000 if stamp is used

40
Q

when is faxing not allowed?

A

if ppt is living in Washington DC or Alabama where raised seal is required.

41
Q

when is ppt allowed to take in-service dist from G457b plan

A

Disability, unforeseeable emergency, small withdrawal of $5000 or less

42
Q

TRS accepts faxed forms for

A

gross (before taxes) distributions of less than $50,000.

43
Q

required for withdrawals and external Direct Rollover paperwork for distributions over a 14 day period of $150,000 or more

A

Medallion Signature Guarantee

44
Q

On an outsourced hardship what % can be grossed up to cover the state taxes

A

10%

45
Q

Excess tax comes out of . .

A

approved hardship amount

46
Q

Cannot gross up . .

A

in excess of the amount available

47
Q

both salary reduction contributions and gains are available for hardship withdrawals

A

pre 12/31/88 balance

48
Q

salary reduction contributions only are available to hardship withdrawals

A

after 12/31/88 balance

49
Q

unforeseeable emergency, small withdrawal of $5000 or less, disability, can also force out of plan

A

12/31/88 balance rule of G457b plans

50
Q

small withdrawal of $5000 or less

A

can only be used once and only if ppt has not made contribution in last two years

51
Q

rollover to TRS IRA,rollover to PRS asset retention, rollover to outside IRA or qualified plan, lump sum withdrawal

A

options for ppt in auto IRA

52
Q

involves money moving from one plan to another

A

plan to plan transfer

53
Q

transfer of funds from one carrier to another with same plan

A

contract exchange

54
Q

Contract exchanges
Plan to plan
$ leaving TRS’s IRA
Anything with Roth

A

when is a letter of acceptance required

Integrated (3 decks)

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