The SECURE Act of 2019 established Required Minimum Distribution (RMD) rules for Eligible Designated Beneficiaries (EDBs) who may extend their distribution period for inherited retirement plans. Financial advisors have a significant responsibility to assure that client retirement accounts are properly set up to reflect the EDB exceptions.
EDB exceptions should be documented within the advisor's Client Relationship Management (CRM) system. ProTracker Advantage® makes this job inherently easy.
A global RMD Exceptions screen within ProTracker Advantage readily summarizes each client account with EDB exception, along with the reason for the exception.
The advisor should review the EDB exception list each year, especially for minor children under the state’s age of majority, and children still in school who may be reaching the end of their EDB exception at age 26.
A task should be created in Advantage to remind the advisor of the need to perform this annual review.
Learn more about calculating RMDs and documenting them.