CISP flashcards
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20 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Traditional IRA
- An individual retirement arrangement whose contribution and distribution treatment depends on the applicable tax conditions rather than the account name alone.
- Roth IRA
- An individual retirement arrangement with its own contribution and qualified-distribution conditions, distinct from assuming every withdrawal is automatically tax-free.
- Custodial account
- An account held under a custodial arrangement, distinguished from a trust agreement or a guarantee of a particular investment return.
- IRA trust
- An individual retirement arrangement established through the relevant trust agreement, with duties distinct from merely recommending an investment.
- Contribution
- An amount added to an arrangement under its applicable eligibility and limit rules, distinguished from every transfer or distribution.
- Deductibility
- The tax treatment of an eligible amount under the relevant conditions, which does not follow solely from acceptance by a custodian.
- Nondeductible contribution
- A contribution for which the applicable deduction is not taken, requiring attention to basis and later tax treatment.
- Tax basis
- An amount relevant to determining taxable treatment under the applicable framework, distinguished from assuming the whole account balance has one tax character.
- Direct transfer
- A movement under the relevant direct-transfer process, whose treatment should be distinguished from a distribution paid to the owner.
- Rollover
- A movement meeting the applicable rollover conditions, rather than any withdrawal followed by an arbitrary deposit into another account.
- Conversion
- A transaction changing the relevant retirement arrangement treatment under its conditions, potentially involving tax even where cash is not spent.
- Required minimum distribution
- A required distribution determined under the applicable account, cohort and beneficiary rules, distinguished from a voluntary planning withdrawal.
- Beneficiary
- A person or entity designated or determined to receive relevant account benefits, whose status can affect post-death distribution treatment.
- Inherited IRA
- An IRA-related arrangement following an owner death, whose treatment depends on beneficiary status and other applicable conditions.
- Additional tax
- A tax imposed under a specified rule in addition to other possible tax consequences, whose exception does not automatically remove ordinary income tax.
- Withholding
- Collection through a payer under the relevant rules and instructions, distinguished from a final determination of the owner annual tax liability.
- Tax-year designation
- The identification of the period to which an amount relates, which can differ from assuming every transaction belongs to the calendar year of processing.
- Distribution reporting
- The record and reporting of an account payment under its actual transaction classification, rather than the owner preferred tax result.
- Account reconciliation
- A comparison of transactions, classifications and balances with supporting records so that omissions and inconsistencies can be identified.
- Servicing authority
- The scope of permission to process or communicate account matters, distinguished from unrestricted investment or tax-advice authority.