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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 "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]
- For purposes
of required distributions paid to a
beneficiary in 2003 and subsequent years, what action must be taken in every case that
involves the death of a plan participant before January 1, 2003? [§1.401(a)(9)-1,
A-2(b)(1)]
- What is the
deadline to establish separate
accounts that allow the beneficiary of each respective separate account to use his or
her own life expectancy when computing the maximum stretch-out potential? [§1.401(a)(9)-8, A-3]
- 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? [§1.401(a)(9)-5,
A-5(c)(3)]
- 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?
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