Raymond James recently introduced a new automatic distribution option for clients taking Required Minimum Distributions each year. We feel a few clients may find the new features beneficial when administering IRA distributions for them or on behalf of a loved one. Let’s take a closer look!
What is the new Auto RMD option?
The Auto RMD option will allow clients to establish a periodic payment schedule that will automatically distribute their calculated Required Minimum Distributions (RMD) for the year.
Who is this option best designed for?
Our clients that our currently over age 70 ½ and already receiving RMD payments. This new feature will be most beneficial to those clients who only withdraw the amount of their RMDs each year and do not expect to need additional income from their IRA.
What is new or different about Auto RMD as compared to my current payment schedule?
The system will automatically take the RMD amount calculated as of 12/31 of the prior year and spread it over the number of payments during the year; such as monthly, quarterly or annually, without any need for you or your planner to determine the amount of each payment or physically set up the schedule each year.
Does my RMD client have to elect the Auto RMD each year?
No. The initial Auto RMD election will remain in effect from year to year unless you want to discontinue it.
How do I set up the Auto RMD option for my RMD clients?
Auto RMD options must be tailored to meet your overall distribution planning needs. Please contact your planner to discuss further details and potential benefits to you.