ProTracker Advantage User Manual
×
Menu

RMD Wizard

Use the Required Minimum Distribution Wizard to calculate withdrawal requirements for all of this year’s RMD Clients at one time.
 
To run the RMD Wizard for all Clients, click on Operations > Accounts > Required Minimum Distributions. In the Assistant panel, click on RMD Wizard.
 
To run an RMD calculation for only one Client, open the Client Profile and click on Accounts > RMD sub-tab. In the Assistant panel, click on Add RMD Calculation.
 
The Wizard may be run at any time during the year, even if the information needed has not yet been entered for all RMD accounts. The Wizard uses an iterative process and may be re-run at any time during the year to determine Clients whose information is still incomplete, or to reflect the addition of Client accounts during the year. The Wizard must be run in Step order each time (4 Steps).
 
Prior to running the RMD Wizard, an RMD Account Audit is recommended.  
 
__________________________________________________________________________
Step 1: Select Accounts subject to the RMD rules.

 

 
Advantage lists an Account if:
• The Account belongs to a Participant who was born before 7/1/1949, and has an Asset Category of “Tax-Deferred Assets” or “Tax-Free Assets.”
 
Confirm that the Accounts listed are an accurate list and check the box to the left of all Accounts that are subject to RMD rules. Leave the checkbox unchecked for living Participants with Roth IRAs or annuities that are contractual obligations as these Accounts are not subject to RMD Rules.
 
RMDs will only be calculated for Accounts that are checked.  
 
The checkbox on the left on the RMD Wizard’s Step 1 screen is the same checkbox as the Required Min. Distrib. Acct checkbox on the Account Details Account Flags panel.
 
Note: An Account will not appear on the Step 1 list if:
 
Click the Next button to proceed to Step 2.
 
__________________________________________________________________________
Step 2: Review year-end values for accuracy
 
 
Make sure that the value as of December 31 of the prior year has been entered for each account listed.
Year-end values may be
imported from a portfolio management system or custodians.
See File > Import and select the relevant custodian(s).
 
Year-end values may also be entered manually by double-clicking the account shown on the list above, or by selecting the Edit Account Values option in the Assistant panel on the Client’s Account Details screen.
 
The Wizard may be run as often as needed. All year-end values do not have to be entered to proceed. Any entry without a year-end value will be temporarily ignored for calculational purposes.
 
After all year-end values, or as many as possible, are entered, click the Next button to proceed to Step 3.
 
__________________________________________________________________________
Step 3: RMD Validation
 
 Only accounts preceded by a green check mark will have an RMD calculated.
 
 
To the left of the Contact name, Advantage displays:
 
 
 
If an account is questionable:
 
__________________________________________________________________________
Step 4. Review RMD calculations
 
 
 
The RMD column states the Required Minimum Distribution for the period ending in the Take Before column.
 
The Take Before column specifies the latest date that the RMD must be taken before the 50% IRS penalty applies.
 
The Rules column designates which set of rules apply to the account, i.e., the 2001 Rules (stretch IRA) or the so-called 2020 Rules signed into law on 12/20/2019, which added EDBs and the 10-Year Rule.
 
The Method column states the required methods of calculation, as follows:
 
Abbreviation
Method
Approach
Recalc
Recalculation Method
Look up the factor in a table each year based on age(s)
N-1
Fixed-Term Method
Look up the factor in the first year; subtract 1 each year thereafter
5-Yr
5-Year Rule
Take withdrawals any time, but empty account by end of 5th year
10-Yr
10-Year Rule
Take withdrawals any time, but empty account by end of 10th year
 
The 10-Yr Exception column designates which accounts are under a 10-Year Rule Exception. To change the status of an Exception, i.e., to check or uncheck the checkbox, go the Account Details screen and the Account Flags panel, or the RMD Calculator dialog box, Step 5.
 
Inspect the calculation results for each of the Clients. Check the results for reasonableness compared to known distribution amounts in prior years. For example, RMD amounts should have increased slightly over the prior year because the Client is a year older (the divisor is smaller).
 
Click the Finish button to exit the RMD Wizard. This will update the RMD screen for each Client with the results of calculations made by exercising the Wizard. You also have the option to create a one-page report for each Client listing their accounts requiring an RMD this year and the total RMD that must be taken to avoid penalty. The report shows withdrawals this year from each account, and the total amount that must still be withdrawn. This report may be saved in each Client's account file or used by the Firm's Portfolio Accounting Department to facilitate completion of RMD withdrawals by December 31.
 
Setting a target completion date of November 20 for completing all RMD distributions is recommended to avoid year-end RMD stress between the holidays.
 
__________________________________________________________________________
Buttons
Help
Click the Help button will take you to the article you are currently reading.
 
Cancel
Click the Cancel button to exit the Wizard without calculating RMD amounts.
 
<Back
Click the Back button to return to the previous screen.
 
Next>
Click the Next button to proceed to the next screen.
 
Finish
Click the Finish button to exit the RMD Wizard and optionally produce a one-page report for each Client.
 
__________________________________________________________________________
RMD Resources
 
RMD Client Overview (includes index of RMD Help Articles)
 
H1441