Retirement Accounts
Chapters in this video
- 0:00 Retirement accounts as the most tested SIE topic
- 1:26 Traditional versus Roth IRA tax timing
- 2:17 The Roth earnings trap: contributions versus earnings
- 4:19 Rollovers and transfers: direct versus indirect
- 6:03 Employer plans and risk: 457 exception, defined benefit versus defined contribution
- 7:50 Required minimum distributions and the 25% penalty
- 9:01 Rapid-fire exam recap
What this video covers
- Whether Roth contributions or earnings face the 10% early withdrawal penalty, and why contributions can always come out tax-free and penalty-free at any age
- The two-part qualified Roth distribution test: age 59 1/2 plus the 5-year clock, and which part applies to contributions versus earnings
- The critical difference between direct trustee-to-trustee transfers (no limits) and indirect rollovers (60-day deadline, one per 12 months)
- Why required minimum distributions cannot be rolled over by any method, and the 25% excise tax penalty for missing an RMD beginning at age 73
- Which employer-sponsored plan has zero 10% early withdrawal penalty, and which employee types it serves
- Who bears investment risk in defined benefit pension plans versus defined contribution plans like 401(k)s
- Why Roth IRAs have no RMDs during the owner's lifetime while Traditional IRAs and 401(k)s force distributions at age 73
Read the full lesson, free
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