Check In With Clients Now About RMDs

September 3, 2019

We’re heading toward the end of the year — and the deadline for annual required minimum distributions from qualified policies for annuitants who are 70½ and older. Here are some facts about RMDs and thoughts on why an autumn distribution is a great idea.

If annuitants don’t take a required minimum distribution by December 31, they risk an IRS penalty of 50 percent of the amount of the distribution. Insurance companies are not allowed to back-date distributions to a previous tax year. That means it’s never a good idea to request an RMD close to the end-of-the-year deadline. An autumn distribution helps clients avoid an IRS penalty.

Even if you’re now selling in a state that doesn't require the training, taking it now means you’re covered if that state adopts the model or you start selling in a state that requires it.

Take this opportunity to check in with your clients. Discuss RMD options, set up accounts and get the required documentation for the RMD option they’d like. If this is your client's first year taking an RMD from The Standard, ensure that we have the year-end balance from the previous carrier.

You can get all required forms on our website. Select your distributor in the drop-down menu, then go to Find Forms and Materials and select Policyowner Service. Please call our Client Communication and Service Team for information about special handling options.

We accept faxed requests to 800.378.4570. RMD quotes are available over the phone and in written form. Contact our service specialists for RMD quotes or answers to questions. Call 800.247.6888 or send us a message.

 

More About Producer Advisories
Many clients count on receiving their annuity payments on specific dates so they can pay bills and meet day-to-day living costs. Electronic Funds Transfer is the best way to ensure payments on time, every time.
Please review this recent compliance alert: New Hampshire INS 305, Suitability of Individual Annuity Sales Recommendations.
We’re always looking to improve the customer experience. Thanks to your feedback, we’re rolling out new options for annual interest payments. See how these new features work.
We mailed IRS Form 1099-R in February to clients who took a distribution last year. You can view and download 2023 and prior year tax forms on the Annuity Portal.
Required Minimum Distribution notifications were mailed out at the end of January. Here’s the rundown on who we sent them to and what to expect.
We’re sending out IRS Form 1099-R in January. We’ll also post them on the Annuity Portal at that time. Take a second to mark your calendars and remind your clients.
Please review this recent compliance alert: Florida House Bill 1185, Suitability of Individual Annuity Sales Recommendations.