Lists

Question 1

Execptions to Penalty for Early Withdrawal of Retirement

Answer 1

1. After age 59.5
2. Made to beneficiary or account holders estate due to death
3. Made on account of disability
4. IRS Levies made after 1999
5. To Pay for Medical Expenses in excess of 10% of AGI
6. QDRO
7. Pay for Health Insurance if UE for >12 weeks (IRAs only)
8. Pay for Higher education expenses for taxpayer, spouse, child or grandchild (IRAS only)
9. FIrst time home purchase up to 10K (IRA and Roth)
10. Military Reservists called to active duty for 6 months
11. Up to $5,000 for birth or adoption of child.

Question 2

What is an “eligble designated beneficary”?

Answer 2

1. Spouse
2. a minor child of original account owner
3. A person not more than 10 years younger than original account owner
4. Disabled or chronically ill child of original account holder

Question 3

How does a trust qualify as a see through trust?

Answer 3

1. Trust must be irrevocable
2. The trust beneficiaries must be individuals
3. The beneficiaries mmust be identifiable for the trust instrument
4. The trust must be valid under State Law