Understanding and Using RMD Tracking

Overview

Ensuring your clients meet their regulatory obligations is essential to investment management. Once clients turn 73, they must make the required minimum distributions (RMDs) from their traditional IRA, SEP IRA, SIMPLE IRA and retirement plan accounts every calendar year. This process is available within Practifi through our comprehensive tracking and reminder-setting framework, allowing you to proactively engage your clients at critical points during the year. This article outlines the RMD functionality available to you within your Practifi organization. If you have questions regarding this functionality, don’t hesitate to get in touch with your firm’s CSM.

• Enabling RMD Tracking
• RMD Eligibility
• RMD Target Setting
• Target Fulfillment Tracking
• RMD Reminders
• Enabling RMD Tracking and Reminders
• RMD Tiles
• RMD Reporting
• Tracking RMDs in the Rulebook
  • Add a Custom Field
  • Create a Rulebook Rule
• Importing RMD Records
• Customization Considerations

Enabling RMD Tracking

Before teams can access RMD tracking data, they must request that the feature be enabled using two Apex jobs (daily and annual). To do so, your firm’s administrator must contact Practifi Support and ask them to complete the enablement.

RMD Eligibility

The RMDs Begin On field located on Individual and Contact records tracks the first day of the year in which that person turns 73, the starting period for RMD management. The field will contain a value only if at least one of the following eligibility criteria is met:

• The person is an Individual Client with one or more Assets whose Category is either Retirement Account, or they have a defined Source.
• They are the Primary Member of a Household or Organization record with one or more Assets as above.
• They are a member of a Household or Organization and have a percentage of ownership in one or more Assets as above, based on the defined Asset Roles.

The RMD Active field on Assets is a checkbox that is automatically enabled when all of the following eligibility criteria are met: 

• One or more of the People related to the record, either via an Asset/Liability Role or as the Primary Member of the Entity, has an RMDs Begin On date set to either today or a date in the past. 
• The record type is Asset. 
• The Category is Retirement Account, or its related Financial Product has a record type of Retirement Plan.
  
  

RMD Target Setting

At the start of a calendar year, present values of eligible accounts are used to calculate the value of the distribution that needs to be made that year. Practifi does not calculate these values; the process is typically handled by the custodian who retains the account, and the target amounts are provided in the form of a CSV or other file. 

These targets can then be uploaded to the Required Minimum Distribution field on the Asset object in Practifi, using a tool such as Salesforce Inspector Reloaded or Salesforce Data Loader, with account numbers serving as unique IDs to ensure that the targets are mapped to the correct accounts within your organization. If you need assistance understanding how to complete this import process, please contact Practifi Support. 

Target Fulfillment Tracking

The Withdrawals YTD field on Asset records tracks the year-to-date value of withdrawals made from the account. Once they meet or exceed the value captured in the Required Minimum Distribution field, the account has fulfilled its obligations for the year, and the date on which this occurred is logged in the RMDs Completed Date field for reporting purposes.

Withdrawals and RMD targets also appear on Contact and Individual records, which roll up the values across all their accounts to provide a singular location for identifying how much is remaining. This can be particularly useful as RMD targets are not assessed on an account-by-account basis but rather based on the sum of target amounts and withdrawals across all the accounts someone owns. 

At the end of the year, the whole year’s details are moved from the This Year’s RMDs field section to an identical one called Last Year’s RMDs, allowing you to start the process over again while also retaining recent fulfillment history for review. 

To make up-to-date tracking easy, our Addepar and Tamarac integrations include Withdrawals YTD as part of their daily sync. Future releases will expand the scope of supported portfolio management systems.

RMD Reminders

There are several points in the RMD process where issuing reminders to your firm’s team members makes sense and several ways of issuing them. The available options are summarized in the below table. Where a number appears as a ?, the value is configurable to suit your firm’s needs. 

	Create a Task	Post to Noticeboard	Send a Notification	Start a Process
Options	Choose a Task Template	Set the Alert Level, Archive Date Interval and write the Post	Set the Subject and Body and define who receives it	Choose a Process Type
When a person’s RMDs begin at the start of the calendar year
When a person has outstanding RMDs ? days before the end of the calendar year
When a person’s RMD targets need to be entered at the start of the calendar year
When an asset is missing an RMD target ? days after the start of the calendar year

Enabling RMD Tracking and Reminders

This is managed from the Additional Features page in the Settings app. To access the Settings app, use the App Launcher in the upper left-hand corner and select Settings from the available app options. Once on the Additional Features page, enable the feature by selecting the button and adding it to the desired users and groups. This also makes the fields appear on the relevant record pages and adds tiles to their home screen. Then use the table in the Feature Settings section on this page to switch your desired alerts and reminders on and configure them as necessary.

RMD Tiles

To allow everyone involved in the RMD management process to easily get a pulse check on how things are going as soon as they log in, Home page tiles are available in the My Alerts & Exceptions row. The tiles are summarized in the table below:

Name	Assigned Apps	Criteria
Assets with missing RMD targets	Advisor, Client Service, Team Member	All Assets related to Entities where I am the record owner or a member of the Servicing Team, where RMD Active is true and Required Minimum Distribution is null.
Assets with missing RMD targets	Compliance	All Assets where RMD Active is true and Required Minimum Distribution is null.
People with outstanding RMDs	Advisor, Client Service, Team Member	All People who either are themselves or are related to Entities where I am the record owner or a member of the Servicing Team, where RMDs Begin On is either today or in the past and RMD Completed Date is null.
People with outstanding RMDs	Compliance	All People where RMDs Begin On is either today or in the past, and RMD Completed Date is null.
People whose RMDs began this year	Advisor, Client Service, Team Member	All People who either are themselves or are related to Entities where I am the record owner or a member of the Servicing Team, where RMDs Begin On occurs in this calendar year.
People whose RMDs began this year	Compliance	All People where RMDs Begin On occurs in this calendar year.

RMD Reporting

To help with ad-hoc reporting requirements as they relate to RMDs, a set of reports is available in your organization within the RMD Reports folder. 

Please note: This report folder is not shared with anyone by default; however, System Administrators can share it with selected users and groups as part of enablement. 

Name	Description	Criteria
Missed RMDs LY by Advisor & Segment	Whose RMD commitments weren’t met last year? Includes a stacked column chart summarizing missed RMDs by Advisor & Client Segment.	All People where: RMDs Begin On is set to a date occurring in the previous calendar year or earlier RMD Completed Date Last Year is null
Outstanding RMDs TY by Advisor & Segment	Whose RMD commitments haven’t yet been met this year? Includes a stacked column chart summarizing outstanding RMDs by Advisor & Client Segment.	All People where: RMDs Begin On is set to a date occurring in this calendar year or earlier RMD Completed Date is null
RMDs Begining TY by Advisor & Segment	Who needs to worry about RMDs for the first time this year? Includes a stacked column chart summarizing new RMDs by Advisor & Client Segment.	All People where: RMDs Begin On is set to a date occurring in this calendar year
Assets With Missing RMD Targets	Which accounts should have RMD targets, but don’t? Includes a stacked column chart summarizing outstanding accounts by Advisor & Client Segment.	All Assets where: RMD Active is true Required Minimum Distribution is null

Tracking RMDs in the Rulebook

If you want more flexibility than what is provided with the out-of-the-box reminders on the Additional Features page, you can create rules in the Rulebook to alert team members about clients' upcoming RMDs. For example, you can automatically create a templated task 30 days before a client’s 73rd birthday.

To accomplish this, you will need a custom formula field on the Contact object and a time-based Rulebook rule that references the field.

Add a Custom Field

To set up a Rulebook rule for RMD tracking, you will first need a custom formula field on the Contact object that calculates the date of the contact's 73rd birthday. You can either contact Practifi Support and ask them to add this field to your organization or you can create the field yourself.

To add a custom field on the Contact object:

1. Select the gear icon and select Setup from the drop-down menu. 
   
   
   
   
2. In Setup, select the Object Manager tab next to the Home button.
   
   
   
   
3. Use the Quick Find search to search for contact, then click the hyperlinked label for Contact.
   
   
   
   
4. Click the Fields & Relationships tab on the left-hand side of the screen.
   
   
   
   
5. On the Fields & Relationships screen, click New.
   
   
   
   
6. On the New Custom Field screen, select the Formula radio button and click Next.
   
   
   
   
7. In the Field Label field, enter Date Client Turns 73 and press <TAB>. The Field Name field will automatically populate.
8. Under Formula Return Type, select Date, then click Next.
   
   
   
   
9. On the Enter Formula screen, paste the following formula into the text box: 

   DATE(YEAR(Birthdate) + 73, MONTH(Birthdate), DAY(Birthdate))

10. Click the Check Syntax button to check for errors.
11. Optionally, fill out the Description and Help Text fields.
12. Click Next, then click Next again.
13. On the Add to Page Layouts screen, determine whether you want to add the new field to any page layouts, then click Save.
14. Back on the Fields & Relationships screen, use the Quick Find search to search for Date Client Turns 73.
15. Copy the API name from the Field Name field. You will need this to build the Rulebook rule.
    
    
    
    

Create a Rulebook Rule

To create a Rulebook rule for RMDs:

1. Click the App Launcher and select the Settings app.
2. In the Settings app, click the Navigation menu and select the Rulebook page.
   
   
   
   
3. On the Rulebook page, click New.
   
   
   
   
4. On the New Rule Criteria screen, enter a name for the rule.
5. Click the Status drop-down field and select Active.
6. Optionally, enter a description.
7. Check the Use time-based execution box.
8. In the Object field, enter Contact.
9. Click the Execute based on drop-down field and select Days before the target field's date.
10. In the Number of Days field, enter a whole number (e.g., 30).
11. In the Target Field field, paste the API name of the custom date field referenced in the previous section.
    
    
    
    
12. Click Save.
13. On the new Rule Criteria record, click the Record Criteria tab.
    
    
    
    
14. To limit this rule to Client records only, click into the Resource field and select Record Field > $Record.
    
    
    
    
15. On the next screen, search for and select Primary Entity Stage.
    
    
    
    
16. Click Insert.
17. Click the Operator drop-down field and select Equals.
18. Confirm that the Value Type field is set to Static Value.
19. In the Value field, enter Client.
    
    
    
    
20. Click Save.
    Please note: If you want this rule to apply to prospects as well as clients, click the Take Action When drop-down field and select Any Condition is Met, then click + Add Condition and repeat Steps 14-18 and set the value to Prospect. 
21. To add actions to the rule, click the caret in the Rule Actions area and select New.

For more information on creating rule-based actions, please see Using the Rulebook.

Importing RMD Records

Depending on your organization's available integrations, RMD records may or may not sync from the connected custodians. For those firms that do not receive all relevant distribution data, please review our articles on Using Data Upload Templates and Using Salesforce Inspector Reloaded to find the appropriate RMD templates to complete regular data uploads of records needed to use the RMD features within Practifi.

Customization Considerations

This feature has modified the following items. If your firm has customized them, you’ll need to either copy the changes into your customized version or switch to the default version and redo your changes.

• Apps

  • Settings

• Lightning pages

  • Asset/Liability Record Page

  • Asset/Liability Role Record Page

  • Service Record Page

• Page layouts

  • Contact Layout

  • Individual Client Layout

• Tile row

  • Advisor, Client Service, Compliance & Team Member - My Alerts & Exceptions