New Quiz Your Advisor

The following questions provide a quick way to test your advisor's understanding of the new rules concerning required distributions from IRA's, qualified retirement plans and TSA's. An astute observer may notice that these questions are identical to the ones listed on the page entitled "New Test Your Knowledge" .

Explain the difference between a Designated Beneficiary and a recipient named on a beneficiary designation form? [§1.401(a)(9)-4, A-1]

Describe the options available to a non-spouse beneficiary of an IRA who wishes to avoid an immediate payout of the decedent’s account and the subsequent tax liability. [§1.401(a)(9)-3, A-1 & §1.401(a)(9)-5, A-5]

What is the deadline that must be met so that a charity named as beneficiary for a portion of an account will not compromise the stretch-out opportunities of the other beneficiaries? [§1.401(a)(9)-4, A-4]

List the four requisites a revocable trust must fulfill in order for it to serve as a suitable beneficiary of an IRA, TSA or qualified retirement plan? What is the deadline for satisfying each of those requirements? [§1.401(a)(9)-4, A-5(b)]

How do you determine the applicable distribution period for required distributions following a participant’s post-RBD death if the account has no Designated Beneficiary?

If a QTIP trust is used as a beneficiary for a qualified plan, what resource document spells out the guidelines that such a trust must follow in order to qualify for the marital deduction and also satisfy the minimum distribution rules?

You will know that you have connected with a knowledgeable planning professional if he or she can readily answer these questions. In the event you receive a vague or evasive response, please contact another professional. The decisions you must make are too important to rely on guesswork or incompetent advice.