Tech Tip Tuesday: Stay on Top of Client RMDs with Orion’s RMD Dashboard

By January 29, 2019Tech Tip

Another year has come and gone, and with every new year, it’s important to make sure your clients have taken care of that pesky to-do, taking their Required Minimum Distributions (RMDs). With the Orion RMD Dashboard, you can streamline your clients’ RMDs and help them avoid costly IRS penalties.

What?

When retirees reach age 70 and a half, the IRS requires that they withdraw a certain amount of money from their retirement account each year. This amount is referred to as a required minimum distribution or RMD. The Orion RMD Dashboard can help turn the RMD process from a burden to a value-add for your clients over 70 and a half.

How?

The RMD Dashboard is driven by information that is found at the Registration level within Portfolio Audit (Portfolio Audit > Registrations > Select a Registration > Edit).

For the RMD Dashboard to calculate the correct distribution amount, there are four essential components:

  1. Registration Types: First, make sure that the appropriate registration types have been marked to be included in the RMD Dashboard. Navigate to Firm Profile > Registration Types. You’ll see a column titled “Include in RMD.” Here you can designate which registrations you would like to include or exclude from the RMD Dashboard.
  2. Registration Information: After you’ve selected your desired registration types, ensure each registration has the most up-to-date information. There are three fields that need to be verified, Date of Birth (D.O.B.), Date of Death (D.O.D.) (when applicable), and Beneficiary Information (when applicable).
  3. End of the Year (12/31) Values: To edit the 12/31 value in your client’s account, right-click the account within the RMD Dashboard, select the option “Edit Year End Value” and input the updated 12/31 value.
  4. Systematic Distributions: RMDs can be satisfied with one distribution or several smaller distributions spread over the course of the year. Systematic distributions allow clients to withdraw a portion of their account on a monthly, quarterly, semi-annually, or annual basis.

If your client’s account has a systematic distribution (set up by the custodian), the RMD Dashboard can monitor when the client’s funds leave the account. To set up a systematic signal, navigate to Portfolio Audit, locate the client’s account and select the Systematics option. This will tell the RMD Dashboard that a distribution will occur on a specific date. As long as the distribution does occur, the account will remain “on track” to satisfy the RMD. If the distribution should pause or cancel, the RMD Dashboard will show that the account is “off track” and an adjustment will need to be made to satisfy the RMD.

After you’ve input the RMD information for your selected group of clients, you can select the “Actions” drop-down menu in the RMD Dashboard and choose “Update RMD”. This will refresh your selected clients’ RMD information. Ideally, if your clients have taken their RMDs, or they are taking systematic distributions your “Registration Status” column will show all green check marks, signaling you’re good to go!

Who can help?

If you have questions about the RMD Dashboard or need help setting up systematic distributions for your clients, please contact the Reporting team at reporting@orionadvisor.com

 

0066-OAS-1/28/2019

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Eddie Sempek

About Eddie Sempek

Eddie Sempek serves as Orion's Chief Innovation Officer. He has worked in several roles at Orion and now oversees the team of tech consultants. He enjoys helping firms in their strategic planning and implementation of technology.

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