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Automated RMD Update

The Required Minimum Distribution (RMD) requirements flag is now automatically calculated and maintained for all financial advisor accounts. This removes the need for manual checks and helps ensure accurate, consistent compliance tracking.

How It Works

The system automatically determines whether an account meets RMD requirements based on two factors:

1. RMD-Eligible Tax Type: The account must use a tax type that is subject to RMD rules (for example, Traditional IRA, 401(k), 403(b), SEP IRA, and similar accounts).
2. Age Requirement: The account holder must have reached the applicable RMD starting age based on their year of birth.

RMD Starting Ages by Birth Year

• Born 1950 or earlier: Age 72 (or age 70½ if born before 1949)
• Born 1951–1959: Age 73
• Born 1960 or later: Age 75 (effective starting in 2033; age 73 applies prior to 2033)

Automatic Updates

The RMD requirements flag is automatically updated in the following situations:

• When accounts are created or updated: RMD status is recalculated immediately.
• When a contact’s date of birth changes: All associated accounts are automatically updated.
• When an account’s tax type changes: RMD status is recalculated based on the new tax classification.
• Daily scheduled job: A nightly process runs at 1:00 AM to refresh all RMD statuses, ensuring accuracy as contacts age.

What Changed

Previously, the “Meet RMD requirements” checkbox was manually selected within the account form. This checkbox has been removed. RMD status is now:

• Automatically calculated based on tax type eligibility and age
• Stored in the meet_rmd_requirements database field
• Available for filtering within the accounts dashboard
• Displayed in account details and contact profiles
• Used to trigger RMD notification emails

Benefits

• Accuracy: Eliminates the risk of missed RMD requirements due to manual oversight.
• Compliance: Helps ensure all applicable accounts are properly flagged for RMD tracking.
• Efficiency: Saves time by removing the need for manual checks.
• Real-Time Updates: Status updates automatically as contacts age or account details change.

RMD Notifications

Advisors are automatically notified when their contacts meet RMD requirements:

• Notifications are sent to the contact owner (the advisor assigned to the contact).
• Notifications are also sent to any assigned servicing advisor(s).
• Additional recipients can be added through the shared email notification options.
• Notifications are sent annually, one year after the previous notification date.
• The notification job runs daily at 1:30 AM, following the RMD status update job.

Viewing RMD Status

You can view RMD status in multiple locations:

• Account Details: The account overview shows whether the account meets RMD requirements.
• Contact Profile: An RMD badge appears in the contact’s important information section.
• Accounts Dashboard: Use the “Meet RMD requirements” filter to locate all qualifying accounts.

Technical Details

The system determines RMD eligibility using the following logic:

• Validates the account tax type against a predefined list of RMD-eligible account types
• Calculates the contact’s age using their date of birth
• Applies the correct RMD starting age based on birth year
• Handles special cases such as age 70½ (70 years and 6 months)
• Updates RMD status in real time when relevant data changes

Important Disclaimer

RMD Compliance Responsibility: The RMD flags and notifications provided by this system are for informational purposes only and should not be relied upon as the sole source for determining Required Minimum Distribution obligations.

Advisor Responsibility: Financial advisors are solely responsible for ensuring compliance with all applicable RMD rules and regulations, including but not limited to:

Professional Advice: This system does not provide tax, legal, or financial advice. Advisors should consult qualified tax professionals or legal counsel to ensure full compliance with all applicable RMD requirements.

No Warranty: While every effort is made to keep RMD calculations accurate and up to date, no guarantees are made regarding the completeness, accuracy, or reliability of the RMD status flags. Use of this information is at your own risk. We disclaim all liability for any loss or damage arising from reliance on this data.