Year-End Tax-Related Deadlines

Published December 2nd, 2016 in News, Updates and Announcements | No Comments »

Please note the information provided below by TD Ameritrade Institutional:

We want to make you aware of several approaching year-end activities with potential tax implications for 2016, and the dates by which action must be taken in order for TD Ameritrade Institutional to meet the December 30 deadline. (December 31 falls on a Saturday this year.)

  • Deadline for Required Minimum Distributions (RMDs): Clients who are 70½ or older must take an RMD from their IRA and/or their QRP for the 2016 tax year. All RMDs must be withdrawn by December 30, 2016, with the exception of RMDs for clients who turned or will turn 70½ during this calendar year; these clients may defer their first distribution until April 1, 2017.

    If your clients have already taken the required distribution for 2016, no other action is required. If not, TD Ameritrade Institutional must receive a completed distribution form no later than December 22, 2016. This is necessary to ensure that the December 30 deadline is met and the RMD is reported in tax year 2016. Distribution forms received after December 22 will be processed on a best-efforts basis. Additional information and instructions for taking an IRA or QRP distribution can be accessed on Veo.You can also establish a systematic payment to ensure the annual RMD is satisfied every year. To do so, complete the Systematic Required Minimum Distribution Form.

  • Deadline for Roth IRA Conversions: Clients must submit a Roth Conversion Form in good order by December 22, 2016. Forms received after that date will be processed on a best-efforts basis.
  • Deadline for Establishing a 2016 QRP: Qualified Retirement Plans for 2016 must be established by December 30, 2016.
  • Deadline for Removal of Non-Marketable Securities: To have non-marketable securities removed from your clients’ accounts by the end of the calendar year, please submit your request by 4 p.m. ET on December 22, 2016. Requests submitted after that time will be processed on a best-efforts basis. Submit your requests by calling the Institutional Trade Desk at 800-400-6288, option 1.
  • Charitable Gift Deadlines:*
    • December 19, 2016: Gift requests of mutual funds**
    • December 22, 2016: Gift requests between accounts custodied at TD Ameritrade
    • December 22, 2016: Gift requests of cash delivered via check and/or federal funds wire

* Important Information on Charity Gifting:
Please have your client notify the charity that these assets are on their way, and also indicate, in the request to us, whether we are permitted to share donor information with the receiver.

** Mutual Fund Charitable Donation Requirements:
Due to the nature of processing charitable mutual fund deliveries, your clients will need to provide the following information with each request, to help us process their transaction in a timely manner:

  • Mutual fund symbol or CUSIP
  • Number of shares your client would like to donate
  • Mutual fund account number at the receiving firm
  • Client account number at the receiving firm

Direct Registration of Securities (DRS) Requests
December 19, 2016: Requests to Transfer Agents to send or receive DRS-eligible assets

1099 Cost Basis Preferences:
If you have previously made an election to display non-covered cost-basis information on your clients’ 1099-B forms, those same elections will be applied this year. If you would like to review or change your current elections, please log in to Veo prior to January 6, 2017, and go to Preferences > User Preferences > Cost Basis.

In previous years, if you requested a change to your previously established covered/non-covered preference for the 1099-B cost-basis display, you were required to also request a reprint through Veo. Going forward, this will not be necessary, as we will automatically send a reprint to your impacted clients when a change is requested.