| Year End Dates and Reminders – Brokerage Operations |
With the end of the year quickly approaching, please make note of the following important deadlines for business processing.
Important Note: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) waived Required Minimum Distributions (RMD’s) from retirement accounts for calendar year 2020, including beneficiary distribution accounts. However, for clients who have not suspended their 2020 RMD payment and are scheduled to received a December payment, the dates below are the applicable deadlines.
| BROKERAGE OPERATIONS – IMPORTANT DATES | |
| Dec. 11, 2020 | Systematic Withdrawals from Retirement Accounts scheduled for payment between December 11th and December 31st will be “pulled forward” in the December 11th nightly cycle. Trades at the client’s instruction should be placed, if necessary, to satisfy the distribution. Partial distributions will be made on December 31st if cash is available in the account. This deadline will allow for corrective actions on incorrect banking or address information. |
| Dec. 16, 2020 | Roth IRA Conversions – It is strongly recommended forms be received, in good order, by December 16th. After this date, conversions will be made on a best efforts basis. Under no circumstances can a request be backdated. Required Minimum Distributions – It is strongly recommended requests be received, in good order, no later than December 16th to ensure proper processing. This will allow time for corrections to incorrect banking and/or address information. |
| Dec. 15, 2020 | Alternative Investments 2020 Annual Custody & Valuation Fees – $35 per registered position, $125 per unregistered position, ($500 maximum Fee) are applied to accounts with eligible positions. If insufficient funds exist in the core fund, an unsecured fee posting will be placed in the account for the outstanding balance of the fee. Fee postings which are not resolved by February 12, 2021 will be reversed and charged to the Registered Representative’s commissions. |
| Dec. 28, 2020 | Systems Deadline for New 2020 Periodic Distributions Plans – must be established and approved in ICP by December 28, 2020 in time to pay in 2020. Beginning December 29, 2020, Fidelity Clearing & Custody will establish periodic distribution plans for 2020 only. |
| Dec. 31, 2020 | Fidelity Clearing & Custody Fee Processing and Balance Reminders – In order for a client to avoid the $35 non-qualified account custody fee, they must have one commissionable transaction settle in 2020 or have a $10,000 balance in the core money market fund on December 31, 2020. Last trade date for 2020 regular way settlement is December 29, 2020. |
| Dec. 30, 2020 | IRA Distributions – December 30, 2020 is the last day an EFT can be sent out of an IRA account as a 2020 distribution. Any EFT distribution entered on December 31, 2020 will be deleted and added as a check to the address of record. |
| Dec. 31, 2020 & Jan. 2, 2021 | Fidelity Clearing & Custody – “Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2020 and, if eligible, are charged the fee on January 2, 2021. |
| Jan. 11-31, 2021 | Securities Liquidations to cover Unpaid Fee Postings – ESI home office will begin the process of liquidating securities to cover unpaid fee postings related to the NFS IRA Custody Fee and non-qualified “Inactivity Fee”. Accounts with eligible securities will have trades placed to cover “debit” balances related to fee postings, as well as applicable transaction charges. Customer confirmations will be marked “To Cover Debit”. Representative’s will be charged the $25.00 service fee if ESI home office has to place trades |
Please contact ESI at (800) 344-7437 with questions.
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