The Best Way to Track RMD 10-Year Rule Accounts

When the SECURE Act (2019) altered the retirement rules, investment advisors became burdened with managing the new 10-year Rule. Under this Rule, account owners must take the total amount of the retirement account within ten years. Advisors bear responsibility for making this happen.

During the ten years, clients must be apprised of the remaining years before the 10-year rule expiration.

Tracking the 10-year rule expiration date for each client account may become cumbersome. The task is best managed using client relationship management (CRM) software, not spreadsheets. ProTracker Advantage® provides built-in screens to guide the advisor in managing distributions during the ten years.
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Investment growth and tax implications enter into the equation and affect the timing of distributions. The beneficiary may not maximize investment growth if the inheritance is taken in full the first year. If the inheritor waits until the tenth year, the beneficiary may be subject to a higher marginal tax rate.

Advantage provides an RMD Account Expirations screen to help track the number of years left before the 10-year expiration date. The screen also provides a current  “Gradual” amount to suggest an appropriate amount to minimize client tax bracket creep. 

Learn More about ProTracker RMD