This communication includes the following notices:
Distribution requests, including those where federal and/or state withholding is requested, must be processed by TCA no later than 2 pm MT, December 31, 2015 to allow time to deposit withholding for tax year 2015. In order to meet this deadline, please ensure that the applicable distribution forms are
accurately completed, funds are available and all requests are submitted to TCA prior to 2 pm, December 31, 2015. Requests received after this time will be processed and reported as tax year 2016 transactions.
**To avoid the last minute rush, sign-up for the on-line distribution feature. **
Click here to learn more about RMDs can be Processed Online in Liberty-Avoid the Year-End Rush
Roth Conversions must be processed by 2 pm MT, December 31, 2015
Roth Conversions must be completed by 2 pm MT, December 31, 2015 in order to be coded as a 2015 taxable event. In addition to Roth conversion documentation being in good order, cash and/or assets and applicable withholding must also be available prior to December 31, 2015.
December 2015 Statement Messages
All IRA owners will have a statement message from Trust Company of America on their December statements as follows:
Message from Trust Company of America
Your account balance as of December 31st will be reported to the Internal Revenue Service as the Fair Market Value for your IRA.
Advisor Personalized Statement Commentary. If you would like to provide a message to your clients on your December 2015 statements, send your message to your relationship manager before January 6, 2016. Statement messages received after this date will delay the creation and mailing of your statements.
Note: If you already have a recurring statement message, that message will continue unless we receive new instructions from you.
Statement Inserts. If you have a statement insert, please notify your relationship manager by January 6, 2016. Please provide a PDF version of the insert to be included with electronic statements.
If you wish TCA to print your insert, send the PDF version of the insert to your relationship manager by December 18, 2015, so that a quote for you can be prepared and so that ample time is provided for the printing process.
Qualified Plans including 401(k) Plan Establishment Deadlines
Qualified Plans, including 401(k)s must be established by December 31, 2015 in order for the plan to be considered in effect for calendar year 2015. If both the employer and the plan trustee have signed and dated the Qualified Plan Adoption Agreement and is received by December 31, 2015, TCA considers the account open and in effect for calendar year 2015. Employer contributions to the plan may be made in 2016 up until the company’s tax filing deadline. If a contribution is an employee pretax or a Roth deferral, then the contribution must be made on the earliest date that the contribution can be paid by the employer to the plan, in accordance with IRS guidelines.
Cost Basis Reports
Cost Basis Not Received – Transfers In: To help you identify any positions transferred to TCA for which we have not received cost basis data, you can run the Cost Basis Not Received – Transfers In report. This report identifies all taxable accounts that have assets with a cost basis of zero.
Please ensure that cost basis information is provided to TCA by December 31, 2015 but no later than January 12, 2016.
RMD Report to Determine Status of RMD and LEP Requirements
The RMD report is available as a standard report on Liberty enabling you to monitor the status of your clients’ RMD and LEP requirements. The RMD report is also available at the representative level. The report lists all IRAs where the account owner reached the age of 70 1/2 prior to January 1, 2016, or is a Beneficiary IRA which is eligible for LEP payments and provides the following information:
If the account transferred to TCA after December 31, 2014, the prior year end market value will need to be provided to TCA in order for the 2015 RMD or LEP to be calculated.
For those IRA owners that have completed a Roth Conversion from their IRA account and still need to satisfy their RMD requirement for the year, please use the column that displays the total required RMD amount for reference rather than just viewing the total taken column of the report as that column contains all distributions taken from the account including Roth Conversions.
January 2016 RMD Systematic Distributions
The December 31, 2015, Fair Market Value (FMV) will not be finalized for 2016 RMD calculations until the second/third week in January 2016.
Annual Systematic RMD Distributions. Annual systematic RMD’s currently scheduled for January 5th or 15th will be moved to January 25th when the 2015 FMV information will be available.
Note: Requests for annual Systematic RMD distributions for payment prior to January 25th will no longer be accepted or established. This does not affect any annual systematic payment dates for any other months.
Monthly, Quarterly, or Semi-annual Systematic Distributions. Any monthly, quarterly or semi-annual systematic distributions scheduled for January 5th, or 15th will not be based on the 2015 FMV. These payments will be the same amount as the 2015 systematic RMD payments. Then prior to the February systematic payment, your relationship manager will calculate and modify the remaining systematic amounts to meet the required minimum distribution.
Funds for deposit to an IRA account without an active transfer or contribution or rollover designation are posted to the account as a miscellaneous deposit. Your relationship manager is providing you a cumulative list of accounts that have had miscellaneous deposits postings. To ensure proper 2015 tax reporting, please review your reports and provide corrected posting information, as applicable. Please note that rollover designations must be provided by the account owner via the Rollover Designation Form or via your email communication to TCA.
Annual Privacy Notice
Trust Company of America is required under federal law to provide clear and conspicuous notice to account owners that accurately reflect our privacy policies and practices on an annual basis.
To comply with the disclosure requirements we will place an insert with Q4 2015 statements in January. The two page insert (front/back) requires TCA to tell customers how we collect, share and protect their personal information.
Further information is available on our website at http://www.trustamerica.com/privacy
In observance of the holidays, TCA will be closed on:
Thursday, November 26; Friday, December 25, 2015; Friday, January 1, 2016.
TCA will close the office at 2:00 pm on Friday, November 27 and Thursday, December 24, since all major markets close at 1:00 pm EST.
If you have any questions regarding this notice, please contact your relationship manager.
Please contact your Client Service Advocate if you any questions or concerns about these posts.