More On Tax Planningfrom The Advisor's Professional Library
- ETF Taxation The use of ETFs may be attractive to certain investors. The tax advantages may make them even more attractive.
- Charitable Giving Charitable giving can reduce your clients’ tax liabilities. However, the general and verification rules for the deduction of charitable gifts must be understood in order to take full tax advantage of such gifts.
Fidelity announced Thursday that it has launched a new Retirement Distribution Center on its website to help clients manage withdrawals from their IRAs.
Clients can set up and track withdrawals, and manage minimum required distributions required by the IRS. Resources that describe different withdrawal strategies are also available on the site.
“The Retirement Distributions Center is a straightforward, easy-to-understand distribution tracking service that provides real-time information so investors can be confident they have both fulfilled their IRS withdrawal requirements and are directing distributions to the accounts they have designated to support their overall retirement income and investing plans,” Rick Mitchell, executive vice president at Fidelity, said in a statement.
The site helps clients manage MRDs by calculating how much they need to withdraw per year based on their total balance; tracking how much they have already taken; sending email alerts with information about deadlines for withdrawals.
“Investors with IRAs who are nearing or in retirement have had to navigate a number of IRS rule changes and volatile markets over the past several years,” Mitchell said.
“The Center dramatically streamlines the process for taking required distributions and allows investors to manage all their withdrawals from one online location,” he added. “This, combined with the expertise of Fidelity’s team of investment professionals, provides a wealth of information about retirement income planning to help them select and execute their withdrawal strategies.”
Educational resources available in the center include webinars on tax considerations associated with MRDs, and guidance on how to calculate distribution amounts.
A new webinar expected later this month on Social Security will outline four steps clients need to take before they apply for benefits. Articles are available that cover various risks to retirement plans, IRA information and withdrawal strategies and ways to plan in a down market.
Fidelity clients over age 59½ who have a Traditional, Rollover or Roth IRA and inherited IRA owners of all ages can access the center for free.