Winter 2017 Quarterly Update

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Winter 2017 Quarterly Update

Jan 11 2017

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Did You Know?

Required Minimum Distributions (RMDs):

If you are 70½ or over, your year-end statement serves as your notice that you must take a RMD for 2017. Your standard RMD provided below the Report of Assets on the year-end statement is based on the total fair market value (FMV) of your IRA at 12/31/2016. If the FMV of any asset is incorrect the asset value must be updated to calculate an accurate RMD. If your spouse is your sole beneficiary and is more than 10 years younger special rules apply.

Fair Market Values (FMV):

May 1, 2017 is the deadline for adjusting the December 31, 2016 the FMVs of your assets. Each year we are required to report the December 31st FMV of your IRA to the IRS. If the FMV of an asset shown on your December 31, 2016 statement is incorrect you need to provide an updated FMV for that asset before May 1, 2017. If the FMVs are correct, no further action is required. Refer to the FMV Requirements for documentation required to support this valuation.

Property Management Accounts:

If you hold real property in your IRA the property manager must provide an accounting of the income and expenses for the property and the December 31, 2016 cash balance of the management account no later than May 1, 2017. The management account will be reflected on your IRA statement and included in the FMV reported to the IRS on Form 5498 annually.

Real Property Administration Fee:

Effective January 2017 the Real Property administration fee will be charged quarterly to more accurately allocate the fee for the months the property is held in your IRA.

IRS Form 1099-R:

January 31, 2017 is the Internal Revenue Service (IRS) deadline for mailing a Form 1099-R to all IRA owners who took distributions during 2016. This information is reported to the IRS. Please contact us with any discrepancies before February 20, 2017 to ensure your distributions are reported accurately. If changes are required after we file the reports with the IRS, your account will be charged our hourly rate of $150 to process the changes and file corrected 1099-R forms with the IRS.

K-1s:

If you receive a K-1 directly from your investment company please email the K-1 to IRASupport@polycomp.net or fax to 916.773.3484 Attn: IRA.

Electronic Signatures:

We are now able to provide most Polycomp documents for electronic signature. This is the fastest and most convenient way to sign your documents since you don’t have to print the document, sign and return the document to Polycomp. You can also sign your documents on a mobile device making signing especially convenient if you are away from home.

Asset Payments:

If checks for payments on assets held in your IRA do not clearly identify the IRA owner and asset, payments may be returned. To assure prompt, accurate posting of payments to your account, please be sure the borrower or investment company makes your checks (or wires) payable to Polycomp Trust Company Custodian FBO (IRA Owner’s Name) IRA (or Roth IRA) and include your name, the asset name and the type of payment, i.e., principal, interest or return of capital.

Loan servicing agent:

A third party loan servicing agent is required for all new notes/loans held by PTC as custodian. The loan servicing agent can be a business or a disinterested third party. The agent cannot be a disqualified person, such as the IRA owner’s spouse or child, or an entity owned 50% or more by the IRA owner and/or disqualified persons. A loan servicer typically collects and forwards all payments to PTC as Beneficiary of the note; maintains records of payments, interest and principal; collects past due payments and penalties; takes action to notify of default and/or other duties as agreed between the IRA owner and the agent. A loan servicer can also be the Trustee of the Deed of Trust and foreclose on the security.

Qualified Charitable Distributions (QCD):

If you are required to take a minimum distribution for 2017 and want to make a charitable contribution you can request that all or part of the distribution (up to $100,000) be made payable directly to a qualified charity. If the distribution check is made payable to the qualified charity you will have the option when preparing your tax return to count your RMD as a QCD (which is excluded from income) or as a charitable deduction. We recommend that you review this option with your CPA or tax attorney. See IRS Pub. 590B for more information.

Withdrawal Requests:

When we receive your IRA Withdrawal Statement we may contact you at the phone number in our records to confirm you initiated the withdrawal. We take this additional step to reduce the chance of fraud on your account. Please provide contact changes timely to avoid delays.

Direct Deposit of Distributions:

Distributions can be directly deposited to your checking or savings account via the automated clearing house (ACH) system. This option is available to you at no additional charge. If you would like your distribution automatically deposited to your account in place of a check, please contact the IRA team at IRASupport@polycomp.net. We must receive your completed ACH form a minimum of one week prior to the scheduled distribution to allow time to set up the automatic deposit.

Contribution Limits for Traditional and Roth IRAs as well as SEP Plan contributions remain unchanged for 2017.

  • Roth and Traditional IRA contribution limits are $5,500 ($6,500 for those over 50). SEP contribution limits are 25% of gross compensation up to $265,000 not to exceed $54,000. Contribution Limits and Deadlines for tax years 2016 and 2017 are available on our website.
  • Make your contribution check payable to Polycomp Trust Company Custodian FBO (IRA Owner’s Name) IRA or Roth IRA. Be sure to specify the tax year for which the contribution is being made. Without a written election we are required to report contributions made in 2017 as 2017 contributions.
  • Traditional and Roth IRA contributions for 2016 must be postmarked no later than April 18, 2017. SEP contributions must be deposited no later than the tax return due date plus extensions.

Contacting the IRA Team

Please contact us at IRASupport@polycomp.net, 800.952.8800, or by fax at 916.773.3484 and the appropriate team member will help you.

Standard Office Hours Monday -Thursday: 8am to 5pm Friday: 8am to noon