Understanding and Using RMD Tracking

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The functionality described in this article is available as part of our Cinsault release and will not be available if your Practifi instance is not upgraded to this release. 

Overview

Ensuring your clients meet their regulatory obligations is essential to investment management. Once clients turn 72, they must make their required minimum distributions (RMDs) every calendar year. This process is available within Practifi through our comprehensive tracking and reminder-setting framework, allowing you to proactively engage your clients at critical points during the year. This article outlines the RMD functionality available to you within your Practifi organization. If you have questions regarding this functionality, don’t hesitate to get in touch with your firm’s CSM.

RMD Eligibility

The RMDs Begin On field located on Individual and Contact records tracks the first day of the year in which that person turns 72, the starting period for RMD management. The field will contain a value only if at least one of the following eligibility criteria is met:

  • The person is an Individual Client with one or more Assets whose Category is either Retirement Account, or they have a defined Source.
  • They are the Primary Member of a Household or Organization record with one or more Assets as above.
  • They are a member of a Household or Organization and have a percentage of ownership in one or more Assets as above, based on the defined Asset Roles.

The RMD Active field on Assets is a checkbox that is automatically enabled when all of the following eligibility criteria are met: 

  • One or more of the People related to the record, either via an Asset/Liability Role or as the Primary Member of the Entity, has an RMDs Begin On date set to either today or a date in the past. 
  • The record type is Asset
  • The Category is Retirement Account, or its related Financial Product has a record type of Retirement Plan.

RMD Target Setting

At the start of a calendar year, present values of eligible accounts are used to calculate the value of the distribution that needs to be made that year. Practifi does not calculate these values; the process is typically handled by the custodian who retains the account, and the target amounts are provided in the form of a CSV or other file. 

These targets can then be uploaded to the Required Minimum Distribution field on the Asset object in Practifi, using a tool such as Salesforce Data Loader, with account numbers serving as unique IDs to ensure that the targets are mapped to the correct accounts within your organization. If you need assistance understanding how to complete this import process, please contact Practifi Support. 

Target Fulfillment Tracking

The Withdrawals YTD field on Asset records tracks the year-to-date value of withdrawals made from the account. Once they meet or exceed the value captured in the Required Minimum Distribution field, the account has fulfilled its obligations for the year, and the date on which this occurred is logged in the RMDs Completed Date field for reporting purposes.

Withdrawals and RMD targets also appear on Contact and Individual records, which roll up the values across all their accounts to provide a singular location for identifying how much is remaining. This can be particularly useful as RMD targets are not assessed on an account-by-account basis but rather based on the sum of target amounts and withdrawals across all the accounts someone owns. 

At the end of the year, the whole year’s details are moved from the This Year’s RMDs field section to an identical one called Last Year’s RMDs, allowing you to start the process over again while also retaining recent fulfillment history for review. 

To make up-to-date tracking easy, our Addepar and Tamarac integrations include Withdrawals YTD as part of their daily sync. Future releases will expand the scope of supported portfolio management systems.

RMD Reminders

There are several points in the RMD process where issuing reminders to your firm’s team members makes sense and several ways of issuing them. The available options are summarized in the below table. Where a number appears as a ?, the value is configurable to suit your firm’s needs. 

  Create a Task Post to Noticeboard Send a Notification Start a Process
Options Choose a Task Template Set the Alert Level, Archive Date Interval and write the Post Set the Subject and Body and define who receives it Choose a Process Type
When a person’s RMDs begin at the start of the calendar year check_mark_32.png check_mark_32.png cross_mark_32.png check_mark_32.png
When a person has outstanding RMDs ? days before the end of the calendar year check_mark_32.png check_mark_32.png check_mark_32.png check_mark_32.png
When a person’s RMD targets need to be entered at the start of the calendar year check_mark_32.png cross_mark_32.png cross_mark_32.png check_mark_32.png
When an asset is missing an RMD target ? days after the start of the calendar year check_mark_32.png check_mark_32.png check_mark_32.png check_mark_32.png

 

Enabling RMD Tracking and Reminders

This is managed from the Additional Features page in the Settings app. To access the Settings app, use the App Launcher in the upper left-hand corner and select Settings from the available app options. Once on the Additional Features page, enable the feature by selecting the 1f464.png button and adding it to the desired users and groups. This also makes the fields appear on the relevant record pages and adds tiles to their home screen. Then use the table in the Feature Settings section on this page to switch your desired alerts and reminders on and configure them as necessary.


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RMD Tiles

To allow everyone involved in the RMD management process to easily get a pulse check on how things are going as soon as they log in, Home page tiles are available in the My Alerts & Exceptions row. The tiles are summarized in the table below:

Name Assigned Apps Criteria
Assets with missing RMD targets Advisor, Client Service, Team Member All Assets related to Entities where I am the record owner or a member of the Servicing Team, where RMD Active is true and Required Minimum Distribution is null.
Assets with missing RMD targets Compliance

All Assets where RMD Active is true and Required Minimum Distribution is null.

People with outstanding RMDs

Advisor, Client Service, Team Member

All People who either are themselves or are related to Entities where I am the record owner or a member of the Servicing Team, where RMDs Begin On is either today or in the past and RMD Completed Date is null.

People with outstanding RMDs Compliance

All People where RMDs Begin On is either today or in the past, and RMD Completed Date is null.

People whose RMDs began this year

Advisor, Client Service, Team Member

All People who either are themselves or are related to Entities where I am the record owner or a member of the Servicing Team, where RMDs Begin On occurs in this calendar year.

People whose RMDs began this year Compliance

All People where RMDs Begin On occurs in this calendar year.

 

RMD Reporting

To help with ad-hoc reporting requirements as they relate to RMDS, a set of reports is available in your organization within the RMD Reports folder. 

Screen_Shot_2022-08-26_at_10.29.17_AM.png

Please note: This report folder is not shared with anyone by default; however, System Administrators can share it with selected users and groups as part of enablement. 

Name Description Criteria
Missed RMDs LY by Advisor & Segment

Whose RMD commitments weren’t met last year? Includes a stacked column chart summarizing missed RMDs by Advisor & Client Segment.

All People where:

  • RMDs Begin On is set to a date occurring in the previous calendar year or earlier

  • RMD Completed Date Last Year is null

Outstanding RMDs TY by Advisor & Segment

Whose RMD commitments haven’t yet been met this year? Includes a stacked column chart summarizing outstanding RMDs by Advisor & Client Segment.

All People where:

  • RMDs Begin On is set to a date occurring in this calendar year or earlier

  • RMD Completed Date is null

RMDs Begining TY by Advisor & Segment

Who needs to worry about RMDs for the first time this year? Includes a stacked column chart summarizing new RMDs by Advisor & Client Segment.

All People where:

  • RMDs Begin On is set to a date occurring in this calendar year

Assets With Missing RMD Targets

Which accounts should have RMD targets, but don’t? Includes a stacked column chart summarizing outstanding accounts by Advisor & Client Segment.

All Assets where:

  • RMD Active is true

  • Required Minimum Distribution is null

 

Customization Considerations

This feature has modified the following items. If your firm has customized them, you’ll need to either copy the changes into your customized version or switch to the default version and redo your changes.

  • Apps

    • Settings

  • Lightning pages

    • Asset/Liability Record Page

    • Asset/Liability Role Record Page

    • Service Record Page

  • Page layouts

    • Contact Layout

    • Individual Client Layout

  • Tile row

    • Advisor, Client Service, Compliance & Team Member - My Alerts & Exceptions

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