We want to make you aware of several approaching year-end activities with potential tax implications for 2015, and the dates by which action must be taken in order for our custodian, TD Ameritrade Institutional, to meet the December 31st deadline.
Deadline for Required Minimum Distributions (RMDs): Clients who are 70 1/2 or older must take a RMD from their IRA and/or their QRP for the 2015 tax year. All RMDs must be withdrawn by December 31, 2015, with the exception of RMDs for clients who turned or will turn 70 1/2 during this calendar year; these clients may defer their first distribution until April 1, 2016.
If your clients have already taken the required distribution for 2015, no other action is required.
If not, FTJ FundChoice must receive a completed distribution form no later than December 17, 2015. This is necessary to ensure that the December 31 deadline is met and the RMD is reported in tax year 2015. Distribution forms received after December 17 will be processed on a best-effort basis.
You can also establish a systematic payment to ensure the annual RMD is satisfied every year. To do so, complete the Systematic Required Minimum Distribution Form to set up the RMD disbursement for 2016. This form cannot be used for Beneficiary IRA accounts.
Deadline for Roth IRA Conversions: Clients must submit a Roth Conversion Form in good order by December 17, 2015. Forms received after that date will be processed on a best-efforts basis.
If you have any questions, please contact your FTJ FundChoice Regional Service Team at 800. 379.2513, option 3.