Quiz Your Advisor

  George H. Coughlin II  2002  All Rights Reserved          Return to Home Page


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".

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

 

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