Speak with your client to determine if he or she has experienced any recent life events. These could include:
Depending on your client’s situation, you may need to help your client roll money over from a retirement account, update beneficiary designations or take a distribution.
Understanding the rollover process can help you guide your client and reinforce their trust in you.
Knowing the ins and outs of beneficiary designations can help you fully satisfy your clients’ planning objectives, extend income from an IRA and create a new generation of clients.
Help your clients make distribution decisions that will help their money last throughout their retirements.
For clients age 59-1/2 or more.
Distributions from an IRA before age 59-1/2 will normally incur a 10% tax penalty in addition to income taxes (the tax penalty is increased to 25% for those who participated in a SIMPLE IRA plan for two years or less). However, under section 72(t) of the Internal Revenue Code, the penalty doesn’t apply to distributions resulting from:
Required minimum distributions (RMDs) begin April 1 of the year following your client’s 70-1/2 birthday. Here’s how to make RMDs easy for your American Funds clients:
The beneficiary’s relationship to the account owner determines the rules and restrictions for beneficiary distributions.
Refer to our A Time of Change brochure to help explain the distribution options available for each type beneficiary.
Financial advisors who do a lot of rollover business have told us that tracking the paperwork through each stage of the rollover process is a key client service.
Some advisors have designated one person in their office to handle all rollover paperwork and follow-up phone calls. One advisor even gives a bonus if that person is able to complete the rollover within one month.
Order IRA Reports
Order reports to find out which clients:
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.