Overview
Helping your clients meet their regulatory obligations is critical to maintaining compliance and building trust. Once clients turn 73, they must take required minimum distributions (RMDs) from their traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts every calendar year. Missing these distributions can result in significant IRS penalties for your clients, making proactive monitoring essential to your service offering.
Practifi's RMD tracking functionality gives you comprehensive visibility into each client’s distribution requirements and progress throughout the year. By centralizing this information within your existing workflows, you can identify at-risk clients early, coordinate timely outreach, and ensure no obligations are overlooked as year-end approaches.
This article outlines the RMD functionality available within your Practifi organization when enabled by your firm’s System Administrator. For additional information about RMD functionality in Practifi, System Administrators can consult our Understanding and Using RMD Tracking article.
Please note: Practifi Administrators may occasionally need to edit or add data for this and other objects. For more information on handling bulk data operations, please review our articles Using Salesforce Inspector Reloaded and Using Data Upload Templates.
RMD Eligibility
Before you can begin tracking distributions, Practifi determines which clients and accounts are subject to RMD requirements. This automated eligibility assessment saves you from manually reviewing every client’s situation and ensures tracking activates at the right time.
How Eligibility Is Determined for People
The RMDs Begin On field on Individual and Contact records identifies the first day of the year in which that person turns 73, marking the start of RMD management. This field will not be available if your System Administrator has not enabled RMD tracking within your Practifi instance.
The RMDs Begin On field contains a value only when at least one of the following eligibility criteria is met:
- The person is an individual client with one or more assets whose category is Retirement Account, or they have a defined source.
- They are the Primary Member of a Household or Organization record with one or more assets meeting the above criteria.
- They are a member of a Household or Organization record and have a percentage of ownership in one or more assets meeting the above criteria, based on the defined asset roles.
How Eligibility Is Determined for Assets
The RMD Active field on Asset records is a checkbox that is automatically enabled when all 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 record, 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.
This automatic activation ensures you’re only tracking accounts that genuinely require distributions, reducing noise and keeping your focus on what matters.
Target Fulfillment Tracking
Understanding how much each client has withdrawn versus what they’re required to distribute is fundamental to RMD management. Practifi's target fulfillment tracking provides real-time visibility into progress throughout the year, allowing you to intervene before deadlines pass.
Tracking Withdrawals at the Account Level
The Withdrawals YTD field on Asset records tracks the year-to-date value of withdrawals made from each account. When withdrawals meet or exceed the value in the Required Minimum Distribution field, the account has fulfilled its obligations for the year. The date this occurs is automatically logged in the RMDs Completed Date field, giving you a clear audit trail for compliance documentation.
Aggregated View at the Client Level
Since RMD requirements are calculated across all eligible retirement accounts rather than account by account, Practifi rolls up withdrawal and target values to Contact and Individual records on the Basics tab. This consolidated view shows you at a glance how much remains to be distributed across all accounts, eliminating the need to manually calculate totals or jump between multiple Asset records.
Year-End Processing and Historical Records
At the end of each calendar year, the current year’s details automatically move from the This Year's RMDs field section to the Last Year's RMDs field section. This allows you to start fresh for the new year while retaining recent fulfillment history for review, trend analysis, and client conversations about distribution strategies.
Integration with Portfolio Management Systems
To ensure your tracking data stays current without manual updates, Practifi's Addepar and Tamarac integrations include Withdrawals YTD in their daily sync. This automation means you’re always working with the most recent withdrawal information, reducing the risk of outdated data leading to incorrect compliance assessments. Future releases will expand the scope of supported portfolio management systems.
RMD Tiles
Staying on top of RMD obligations across your entire book of business requires visibility into key metrics as soon as you begin your workday. Practifi's Home page tiles provide at-a-glance alerts that surface clients who require attention, allowing you to prioritize outreach and coordinate team responses efficiently.
Available Tiles
RMD tiles appear in the My Alerts & Exceptions row on your Home page when added by your System Administrator. Access to these tiles may vary depending on whether your System Administrator has enabled them within your organization or your specific Practifi app.
The following table summarizes the available tiles, their assigned apps, and the criteria they use to identify records:
| 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. |
These tiles help you identify both immediate action items (such as clients with outstanding distributions near year-end) and upcoming planning opportunities (such as clients entering their first RMD year who may need education and guidance).
RMD Reporting
While tiles provide daily visibility, comprehensive reporting allows you to analyze trends, assess team performance, and plan proactive outreach campaigns. Practifi includes a set of pre-built RMD reports designed to answer common questions about your firm’s RMD management effectiveness.
The following reports are available:
- Missed RMDs Last Year by Advisor and Segment
- Assets with Missing RMD Targets
- RMDs Beginning This Year by Advisor and Segment
- Outstanding RMDs This Year by Advisor and Segment
| Please note: To help with ad hoc reporting requirements related to RMDs, a set of reports is available in your organization in the RMD Reports folder. These reports are available to System Administrators within your organization by default. If you would like access to RMD reports, please reach out to your Practifi System Administrator. |
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