230302AM IRA Series: IRA Beneficiary Designations & Distributions Part A: Proper Handling, Responsibilities & Compliance - CB

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* 1. Michael named his wife, Hera, as his primary beneficiary and his daughter, Katie, as his contingent beneficiary under a per capita beneficiary designation. Hera died before Michael. If Michael did not change his beneficiary designation, who will receive the IRA assets upon Michaels’s death?

Hera’s estate.

Michaels’s estate.

Katie.

The state will receive the IRA assets through escheatment since there was no primary beneficiary named.

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* 2. Which of the following options is not available to a non-spouse beneficiary when the IRA owner died in 2019 before his required beginning date?

The five-year rule.

Life expectancy payments over the IRA owner’s single life expectancy.

Life expectancy payments over his own single life expectancy.

Transfer the inherited IRA to a new inherited IRA at another financial organization.

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* 3. Which of the following would be allowable beneficiaries on an IRA account?

Charitable organizations.

Minors.

The estate of the IRA owner.

All the above would be allowable.

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* 4. An IRA owner named a trust as the primary beneficiary on his IRA plan. Upon the death of the IRA owner, the best practice for the IRA trustee or custodian is to?

Distribute the funds at the direction of the trust beneficiaries and title the checks in the name of the beneficiaries using the tax ID numbers of the beneficiaries on the 1099-R Forms.

Distribute the funds at the direction of the trustee of the trust and title the check in the name of the trust using the tax ID number of the trust when reporting the distribution on Form 1099-R.

Always distribute the funds at the direction of the executor of the decedent's estate and title the check in the name of the estate using the tax ID number of the estate on Form 1099-R.

Immediately establish individual IRA accounts for each trust beneficiary and wait for direction from the trustee of the trust on how to distribute the funds separately to each trust beneficiary.

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* 5. If an IRA owner died in 2023, the deadline to separately account for each beneficiaries’ interest in the IRA account is?

December 31, 2023.

January 1, 2024.

12 months after the date of the IRA owner’s death.

December 31, 2024.

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* 6. Which of the following options is not available to a non-spouse beneficiary, who is not an “eligible designated beneficiary”, if the IRA owner died in 2023 before his required beginning date?

10- year rule.

Immediate lump sum distribution.

Lump sum distribution after 5 years.

Life expectancy payments.

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* 7. Thomas died in 2023 at age 48. His wife Dawn is the sole beneficiary and wants to leave the IRA as an inherited IRA and take life expectancy payments. When must Dawn take her first life expectancy distribution.

By December 31, 2023.

By December 31, 2024.

By the end of year that Thomas would have attained age 73.

By the end of the year that Dawn will be age 73.

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* 8. What is one Roth IRA beneficiary option that is available to EVERY type of beneficiary upon a Roth IRA owner’s death in 2023?

Life expectancy payments over each beneficiary’s single life expectancy

10-year rule

Lump sum.

Treat the Roth as the beneficiary’s own Roth IRA.

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* 9. Which of the following options are available to a nonperson beneficiary if the IRA owner died in 2023 before his required beginning date?

10-year rule.

5-year rule or lump sum.

Rollover to a new IRA account.

Distributions over the life expectancy of the deceased IRA owner.

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* 10. Which of following IRA beneficiaries would not be considered an “eligible designated beneficiary.”

The IRA owners’ spouse.

The IRA owners’ minor child.

An individual who is 11 years younger than the IRA owner.

Certain disabled or chronically ill individuals.