When it comes to Required Minimum Distributions (RMDs), a client’s relatives play a significant role when retirement account beneficiaries are established.
Addresses and telephone numbers stored in client relationship management (CRM) software should be capable of meeting a variety of the firm’s communication needs. For example, envelopes should be printable directly from the CRM.
In ProTracker Advantage, right-clicking on an address provides an extensive menu of capabilities, including
A robust client relationship manager (CRM) is essential to harness data for effective prospect and client communications. Recording every contact interaction facilitates prompt responses to customer questions and client queries. In successful firms, the mantra is, “If it is not in the contact manager, then it didn’t happen.”
We have been getting calls regarding the announced retirement of Junxure CRM. Junxure was acquired by AdvisorEngine several years ago. Franklin Templeton has since acquired AdvisorEngine. Other client relationship management (CRM) software products have suffered similar fates.
When the SECURE Act (2019) altered the retirement rules, investment advisors became burdened with managing the new 10-Year Rule. Under this rule, account custodians must distribute the total amount of the retirement account to the inheritor within ten years. During the 10-year period, clients need to be apprised of the remaining years left within the 10-year period.
Under IRS Publication 590-B, three longevity tables are used for Required Minimum Distributions (RMDs): the Uniform Lifetime Table, the Single Life Expectancy Table, and the Joint and Last Survivor Expectancy Table. The factors in these tables are technically called Applicable Distribution Periods (ADPs).
The additional complexity engendered by the SECURE Act of 2019 calls for greater vigilance on the part of financial advisors when it comes to tracking Required Minimum Distributions (RMDs). The introduction of the 10-year rule and the establishment of Eligible Designated Beneficiaries (EDBs) created additional intricacy to RMDs.
The SECURE Act of 2019 increased the complexity of administering retirement plans for clients. Financial advisors are responsible to track the setup, investment, and distribution of these important client resources.
Under the SECURE Act (2019) , beneficiary designations took on added importance because the SECURE Act introduced a 10-Year Rule wherein account custodians must distribute the total amount of the retirement account within ten years.
Non-designated beneficiaries (charities, estates, and non-see-through trusts) may have only five years to distribute the account if the participant died before his or her Required Beginning Date (the 5-Year Rule).
Under the new SECURE Act of 2019 rules, Required Minimum Distributions (RMDs) for beneficiaries inherited after 2019 depend upon the date of death of the Participant.
We added a sixth option in Step 1 to accommodate the 10-Year Rule, specifically, the “Successor Beneficiary” option. We now designate the Participant as the “Primary Beneficiary.” All follow-on beneficiaries are “Successor Beneficiaries.”