The potential business building benefits in the IRA rollover market is staggering – to say the least. But, so are the red flags and potential pitfalls that come with it.
If the rollover isn't done right, the E&O hit could spell the end for the advisor and his practice. Here are 10 tips to ensure you get it right:
- Make required minimum distributions in a timely fashion.
- Take the proper required minimum distribution (RMD) dosage.
- Keep track of basis.
- Perform rollovers without triggering taxable events.
- Make sure accounts are liquid enough to cover RMDs.
- Factor in the tax implications of net unrealized appreciation.
- Maintain a handle on beneficiary designations.
- Preserve liability protection.
- Keep abreast of deadlines.
- Reckon with a lack of standardized account guidelines.
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