37
Retirement Contrib Use Cases
33 implemented
Wave 2 coverage
4 out of scope
Recurring (UC-RC25–28)
28
Retirement Acct Codes (Q*/R*)
Wave 2 status: 33 of 37 retirement use cases implemented (UC-RC25–28 excluded as recurring). 6 new inline rule services wired into the NLZ pipeline. See
Implementation Status for the full matrix.
Scope: this page enumerates the functional use cases for money flowing
into retirement accounts (ACHC) at LPL. The generic
Use Cases page covers non-retirement deposits and all withdrawals. Retirement contributions add IRS complexity (limits, prior-year coding, rollover rules, conversion mechanics) that the generic deposit path does not handle.
Prior NLZ gap (closed in Wave 2): EligibilityService in cam-movemoney-process-api previously only allowed BBK / BFL / BMM. Wave 2 widened it from 3 codes to 32, covering all Q*/R* retirement codes. The 6 new inline rule services (limit, prior-year, rollover, conversion, HSA eligibility, excess handling) are wired between Eligibility and Compliance.
2A — One-Time IRA Contribution (Traditional / Roth)
Direct contributions by or on behalf of an individual into a Traditional or Roth IRA at LPL.
| ID | Actor | Description | Status |
|---|
| UC-RC1 | Investor | Submit a current-year contribution to a Traditional IRA (account codes Q*, R*) from a linked bank account | ✓ Implemented |
| UC-RC2 | Investor | Submit a current-year contribution to a Roth IRA | ✓ Implemented |
| UC-RC3 | Investor | Submit a prior-year contribution (between Jan 1 and Apr 15); system codes ContributionYear = prior | ✓ Implemented |
| UC-RC4 | Investor | Submit a catch-up contribution (age 50+): extra $1,000 above regular IRA limit | ✓ Implemented |
| UC-RC5 | Advisor | Submit an IRA contribution on behalf of an investor (rep-initiated) | ✓ Implemented |
| UC-RC6 | Investor | Submit a spousal IRA contribution: MFJ household, nonworking spouse’s IRA funded based on working spouse’s earned income | ✓ Implemented |
2B — Employer-Sponsored Retirement Contributions (SEP / SIMPLE)
Contributions to employer-sponsored IRAs for small businesses and self-employed.
| ID | Actor | Description | Status |
|---|
| UC-RC7 | Employer | Submit SEP-IRA contribution (up to 25% of employee compensation, max $70,000 for 2026) | ✓ Implemented |
| UC-RC8 | Self-Employed | Submit SEP-IRA contribution for self-employment income | ✓ Implemented |
| UC-RC9 | Employee | Submit SIMPLE IRA salary-deferral contribution (up to $16,500 / $20,000 with catch-up) | ✓ Implemented |
| UC-RC10 | Employer | Submit SIMPLE IRA employer match (3% match or 2% non-elective) | ✓ Implemented |
| UC-RC11 | Employer | Submit profit-sharing / SEP-IRA contribution near tax-filing deadline (applies to prior tax year) | ✓ Implemented |
2C — Rollover Contributions
Compliance: rollovers require correct 1099-R / 5498 coding (code G for direct, code 7 for indirect, code H for Roth 401(k) → Roth IRA). Once-per-year rule applies to indirect IRA-to-IRA rollovers.
| ID | Actor | Description | Status |
|---|
| UC-RC12 | Investor | Direct rollover (trustee-to-trustee) from a former employer 401(k) into a Traditional IRA at LPL | ✓ Implemented |
| UC-RC13 | Investor | Direct rollover from a Roth 401(k) into a Roth IRA at LPL | ✓ Implemented |
| UC-RC14 | Investor | Indirect 60-day rollover: investor receives the check, deposits to LPL within 60 days (20% mandatory withholding if from qualified plan) | ✓ Implemented |
| UC-RC15 | Investor | IRA-to-IRA rollover between custodians (subject to one-rollover-per-12-months rule) | ✓ Implemented |
| UC-RC16 | Spouse beneficiary | Spousal rollover from deceased spouse’s IRA into surviving spouse’s own IRA | ✓ Implemented |
| UC-RC17 | Non-spouse beneficiary | Inherited IRA setup from deceased account (no contributions allowed; 10-year distribution rule under SECURE Act) | ✓ Implemented |
2D — Roth Conversions & Recharacterizations
Note: conversions are reportable taxable events (1099-R). Post-TCJA, Roth conversions cannot be recharacterized back to Traditional. Regular contribution recharacterizations are still allowed.
| ID | Actor | Description | Status |
|---|
| UC-RC18 | Investor | Full Traditional IRA → Roth IRA conversion (entire balance); full amount taxable as ordinary income | ✓ Implemented |
| UC-RC19 | Investor | Partial conversion (strategic, e.g. fill up a tax bracket) | ✓ Implemented |
| UC-RC20 | Investor | Backdoor Roth: nondeductible contribution to Traditional IRA, then same-year conversion to Roth (pro-rata rule applies if other pre-tax IRA balances exist) | ✓ Implemented |
| UC-RC21 | Investor | Recharacterize a regular Roth contribution to Traditional (or vice-versa) before tax-filing deadline | ✓ Implemented |
2E — HSA Contributions (retirement-adjacent)
Health Savings Accounts function as retirement vehicles after age 65 (non-medical withdrawals taxed as ordinary income, no penalty).
| ID | Actor | Description | Status |
|---|
| UC-RC22 | Investor | Submit HSA contribution (2026: $4,300 single / $8,550 family); must be HDHP-covered | ✓ Implemented |
| UC-RC23 | Investor | Submit HSA catch-up contribution (age 55+): extra $1,000 | ✓ Implemented |
| UC-RC24 | Employer | Submit employer HSA contribution on behalf of employee | ✓ Implemented |
2F — Recurring Retirement Contributions
Gap: recurring / periodic contribution handler does not exist in OLZ or NLZ (see
Gaps). Must be built in
cam-mm-backgroundservice-api.
| ID | Actor | Description | Status |
|---|
| UC-RC25 | Investor | Set up recurring monthly dollar-cost-averaging contribution to IRA (fixed amount, W/BW/M/Q/A frequency) | ✗ Out of scope (recurring) |
| UC-RC26 | Investor | Set up recurring contribution scheduled to auto-stop at IRS annual limit | ✗ Out of scope (recurring) |
| UC-RC27 | Investor | Modify or cancel an active recurring retirement contribution | ✗ Out of scope (recurring) |
| UC-RC28 | System | Auto-execute recurring retirement contribution; apply prior-year coding if scheduled before Apr 15 and flagged as prior-year | ✗ Out of scope (recurring) |
2G — System / Operational Use Cases
| ID | Actor | Description | Status |
|---|
| UC-RC29 | System | Enforce IRS contribution limit by account type, age, filing status; reject or hold if exceeded | ✓ Implemented |
| UC-RC30 | System | Code contribution year correctly: current-year default; prior-year allowed between Jan 1 and Apr 15 if flagged | ✓ Implemented |
| UC-RC31 | System | Apply correct 5498 reporting code (regular, rollover, conversion, recharacterization, SEP, SIMPLE) | ✓ Implemented |
| UC-RC32 | System | Aggregate YTD contributions across all client retirement accounts; flag cross-account over-contribution | ✓ Implemented |
| UC-RC33 | System | Enforce once-per-12-months indirect IRA rollover rule; reject second rollover within window | ✓ Implemented |
| UC-RC34 | System | Validate HSA eligibility (HDHP coverage flag) before accepting HSA contribution | ✓ Implemented |
2H — Excess Contribution Handling
| ID | Actor | Description | Status |
|---|
| UC-RC35 | Investor | Return of excess contribution before tax-filing deadline (includes earnings calculation; avoids 6% penalty) | ✓ Implemented |
| UC-RC36 | Investor | Return of excess contribution after deadline (6% penalty applies for each year not removed) | ✓ Implemented |
| UC-RC37 | Investor | Apply prior-year excess as current-year contribution (“absorbing” the excess) | ✓ Implemented |
Retirement Account Code Coverage
The 28 retirement account codes (Q*/R*) that must be supported for contributions. See Withdrawal Detail for full classification.
2026 Contribution Limits (Planning Reference)
| Account Type | Regular Limit | Catch-up (50+) | Notes |
|---|
| Traditional / Roth IRA (combined) | $7,000 | $1,000 | Shared across Traditional + Roth per individual |
| SEP-IRA | Lesser of 25% comp or $70,000 | N/A | No catch-up; employer contribution only |
| SIMPLE IRA | $16,500 | $3,500 (50+); $5,250 super (60–63) | Employee salary deferral |
| 401(k) elective deferral | $23,500 | $7,500 (50+); $11,250 super (60–63) | LPL holds rollovers; plan sponsors hold contributions |
| HSA | $4,300 single / $8,550 family | $1,000 (55+) | HDHP coverage required |
Limits change annually (SECURE 2.0 phasing through 2027). Source of truth must be owned by Tax Ops with a versioned config.
Key IRS Reporting Obligations
| Form | Purpose | Filing |
|---|
| Form 5498 | Reports all IRA contributions (regular, rollover, conversion, recharacterization, SEP, SIMPLE) | Custodian files by May 31 for prior year |
| Form 1099-R | Reports distributions (including conversions reported as distribution from source) and rollovers | Custodian files by Jan 31 |
| Form 8606 | Client-filed: tracks nondeductible Traditional IRA basis (for Backdoor Roth pro-rata) | Client responsibility |
| Form W-2 Box 12 | 401(k) salary deferrals | Employer responsibility; informational only |
Next: see
Gaps & Risks for implementation gaps (recurring scheduler, EligibilityService ACHC expansion),
AI — Retirement Contrib for AI-layered opportunities on top of these use cases, and
Withdrawal Detail for the corresponding withdrawal side of retirement accounts.