To ensure that the planning process when working with Traditional IRA accounts is as efficient as possible we’ve added the Contribution tab to Traditional IRAs.
This update will eliminate the need to model Traditional IRA contributions via Transfer Flows. Additionally, all contributions will adhere to the IRS maximum contribution limits.
These changes will be most visible in your Fact Finder, the Client Organizer, Advanced Planning Techniques and all Reports that display contributions.
How do I add Traditional IRA Contributions? It’s easy!
If you’d like to enter contributions from Basic Facts simply go to the Savings & Contributions section and click the “Add” button.
Or if you’re working in the Advanced Fact Finder follow the steps below:
- First, navigate to your client’s Advanced Facts and open the Investments menu to select the Traditional IRA.
- Once you’ve selected a Traditional IRA account, you will see your new Contributions tab between Basic and Beneficiaries. Click on the Contributions tab and you will have the option to enter the Pre-Tax contributions (or Non-Roth Post Tax) and even create schedules to adjust contribution amounts over time.
- That’s it!
How will this update affect my existing Transfer Flow contributions?
Where applicable, we will be automatically converting existing Transfer Flows to Traditional IRA contributions. However, many transfer flows will not meet the strict criteria required to be converted automatically.
It’s important to note that Transfer Flows will not adhere to the Traditional IRA maximum contribution limits, so we recommend manually converting any remaining Traditional IRA transfer flows into contributions to get the full benefit of the feature.
Note: When a variety of contributions are present, the system will prioritize Roth IRA contributions, then Pre-Tax Traditional IRA contributions, before Non-Roth Post-Tax Traditional IRA contributions.
No changes have been made to the way eMoney handles Transfer Flows and their functionality. If you have any additional questions about this release please give us a call at 888-362-8482 or send us an email.