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Rollover IRAs Present a Year-Round Opportunity

Issue 20, 2011

The opportunity to attract a rollover may come at any time and for many different reasons. Your clients may have former employer plan assets from one or more previous jobs or they may be approaching retirement and need to simplify their financial situation by consolidating assets. One key to identifying rollover opportunities is to review your client base regularly. Another key is to invite prospects in for an overview of retirement planning and the benefits of a rollover IRA.

Life Events That Can Trigger Rollovers

  • Death of a spouse
  • Divorce
  • Inheritance
  • Job change or loss
  • Retirement
  • Marriage

Talk About Rollovers During Client Meetings
Pershing’s independent study, “The Secret Knock: Unlocking the Retirement Opportunity,” highlights the demand for a written retirement plan. Even more important, is the correlation that exists between providing a written retirement plan, increasing trust levels between you and your clients and the ability to attract additional rollover opportunities. Timely interactions with clients are keys to discovering these opportunities:

  • Prepare a written retirement plan to uncover additional accounts and savings
  • Target customers nearing retirement that likely have significant 401(k) or IRAs
  • Talk about rollover opportunities during client annual meetings and reviews using the new Rollover IRA brochure
  • Offer to review all 5498s and 1099Rs with clients during tax season
  • Hold a client seminar on retirement planning

Resources Available from Pershing
Visit, Retirement Toolbox for new marketing materials. Printed materials can be ordered through the Material Catalog under the Resources tab in NetX360®, using keyword search: IRA-Marketing.

Use the following tools and calculators to help you in client conversations and to help identify other accounts for asset consolidation.

  • Net Unrealized Appreciation Calculator (NAU) 1 is specifically designed to assist you and your IRA Rollover clients in determining the possible tax benefits of transferring employer stock from a 401(k) to a taxable account
  • 72(t) Distribution Calculator 2 can help you and your clients in calculating substantially equal periodic payments under IRC Section 72(t), which are exempt from the 10% penalty tax on early distributions
  • Required Minimum Distribution (RMD) Calculator 2 can help you and your IRA clients calculate the distribution amounts required to be withdrawn from an IRA
  • Beneficiary IRA Distribution Calculator 2 can assist you with calculating the distribution amounts required to be withdrawn from a beneficiary IRA

    (1) NUA affects rollovers and must be decided on before a rollover is completed
    (2) Distributions taken for RMDs, required death distributions from inherited accounts, or for early withdrawals under Internal Revenue Code section 72(t) are not eligible for rollover

Access Pershing’s Investment Solutions Series webcasts on retirement income:

  • Bond Laddering Strategies to Step Up Retirement Income
  • Three Strategies to Augment Your Clients' Retirement Plans
  • Delivering Retirement Income Support
  • Managing Retirement Income Portfolios in a Changing Environment

Don’t Forget About Consolidating IRAs
While you are having the rollover conversation with clients, also ask about IRAs held at other firms or those held directly at mutual fund companies. Consolidating retirement assets can help create a more comprehensive retirement plan and track performance. It can also help reduce costs for clients who may be paying fees at more than one institution.

For Professional Use Only.

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