Financial Institutions Newsletter FI-News-2018-Q4 - Page 12

OPERATIONS YEAR-END PROCESSING DEADLINES for Retirement Accounts The end of the year is approaching, and we would like to alert you of a number of important processing deadlines for NFS and Pershing retirement accounts. This includes traditional, Roth, rollover, SEP, SIMPLE IRAs, IRA beneficiary distribution accounts and Roth IRA beneficiary distribution accounts; and retirement plan and retirement plan beneficiary distribution accounts. Consistent with IRS requirements, distributions (including conversions) are tax reported by the clearing firm for the year the distribution is processed. The distribution must occur prior to year-end to be reported as a distribution during that tax year. Distributions cannot be backdated to reflect a previous tax year for any reason. To ensure distributions are able to be processed before year end, it is highly recommended that all distribution requests be received in good order on or before Dec. 14, 2018. Requests received after Dec. 14 or requests that are not in good order when received will be processed on a best effort basis. Important Note: To facilitate year-end distribution processing, please do not submit distribution requests for 2019 reporting until after Dec. 31, 2018. YEAR-END DISTRIBUTIONS The last day to request a distribution for 2018 is Dec. 31, 2018 (Dec. 28, 2018 for distributions via EFT). It is strongly recommended these requests be submitted in good order by Dec. 14, 2018. Submitting requests earlier allows you to address any items that are not in good order prior to Dec. 31, 2018. PARTIAL DISTRIBUTION PROCESS If funds in the core account are insufficient to meet the requested or scheduled distribution amount, the distribution will pend for the greater of 15 business days or until Dec. 31, 2018. The full distribution amount will be paid if it becomes available at any time during the pending period. This partial distribution process applies to periodic distributions and will be in effect for December only. 11 Financial Institutions Newsletter | 4 th QUARTER 2018 PERIODIC DISTRIBUTION PLAN PAYMENTS NFS December periodic distribution plan payments from a customer’s core account which are scheduled to occur between Dec. 11, 2018 and Dec. 31, 2018, will be pulled forward and processed in the Dec. 6, 2018 nightly cycle. Example: A customer has a periodic distribution plan which is scheduled to distribute $500 from their core account on Dec. 24, 2018. This payment will be pulled forward and will feed into the nightly cycle on Dec. 6, 2018. It will have a processing date of Dec. 7, 2018, and the distribution will be released on Dec. 10 if sufficient funds are available. Mutual fund liquidating trades for this distribution will be placed at market close on Dec. 6, 2018, and will be visible in account history on Dec. 7, 2018.