Advisor Flipbooks

© 2023 SEI 3 Electronic Tax Form Delivery Investors are able to opt into electronic-only tax form delivery. This service is available for 1099R, 5498, and 1099 'DIOB' tax forms. Investors can login to www.accessmyportfolio.com or Investor.SEI-Connect.com and select Profile to update their tax form delivery preferences. If an investor opts in to e-delivery, the tax form(s) will no longer be physically mailed and instead they will be notified via e-mail to login to www.accessmyportfolio.com or Investor.SEI-Connect.com and retrieve their tax form(s). Note that investors with website access are still able to download their tax forms regardless of whether they have opted in to electronic-only tax delivery. IRS Form 1065 Schedule K-1 Reporting (Partner's Share of Income/Expense) Certain holdings generate an IRS form 1065, commonly called a K-1. Form 1065, K-1 reports income and other distributions, deductions, credits, etc. and are generally issued by Partnerships or S Corporations. Form 1065, Schedule K-1 is issued by the asset issuer directly and is not provided by SPTC to the taxpayer. As a result, SPTC will not be able to provide a timeline on when a taxpayer can expect to receive the form. Form 1065 Schedule K-1 are generally mailed in March and April, so clients who hold K-1 generating assets should consider filing a tax extension to ensure they have received all tax forms prior to filing. SEI will provide firms a list of account owners who held known K-1 generating assets and may receive a K-1 for 2022. For IRA accounts that hold K-1 generating assets, SPTC will receive the K-1 form. SPTC will review the K-1 for Unrelated Business Taxable Income (UBTI) and determine if the taxpayer has made over $1,000 in UBTI in 2022. If so, SPTC is required to file IRS Form 990T on behalf of the taxpayer, and the taxpayer will have an additional tax liability that must be paid outside of their annual 1040 filing. SPTC will pay this tax from the client's IRA directly; this tax payment is not considered a taxable or reportable distribution. Individual Retirement Accounts (IRAs) Distributions for tax year 2022 IRA distributions are reportable and taxable in the year they are distributed. All requests for distributions must be submitted by the deadlines listed in the 2022 Year-End Tax Calendar. Note: When filling out an IRA distribution request, please make a withholding election. If no election is made, SPTC will withhold 10% for federal taxes. The advisor's signature can be accepted if the request meets the SPTC first-party distribution signature requirements, otherwise the IRA owner must sign the distribution request. 2022 Required Minimum Distributions (RMDs) Traditional, SEP, and SIMPLE IRA owners who have attained the age of 73 or older are required to take minimum distributions from their accounts. The deadline for taking the annual required distribution is December 31 of the year for which the distribution is due. A special deadline extension exists for persons who are in their first RMD calendar year. For persons who attain the age of 73 in the calendar year, the deadline for taking their first RMD is April 1 of the following year. The RMD for clients are calculated using the appropriate IRS Lifetime table, and advisors will receive RMD updates automatically via the RMD dashboard on www.SEIAdvisorCenter.com. Inherited Traditional and Roth IRA beneficiaries generally were required to take RMDs prior to the SECURE Act of 2019. The SECURE Act changed Inherited IRA election rules for non-spouse beneficiaries for any IRAs where the original owner died on or after January 1, 2020. For those non-spouse beneficiaries, generally they must deplete the Inherited IRA within 10 years, except if they fall into an allowable exception outlined in the SECURE Act. Additionally if an original IRA beneficiary inherited an IRA, but died on or after January 1, 2020, the 'successor' beneficiary will need to deplete the account with 10 years. In addition, if the original owner died after their 'Required Beginning Date', the beneficiary must take RMD's in years 1-9. If the original owner died on or before December 31, 2019, the beneficiary would have the pre-SECURE Act elections and are likely subject to an RMD. Note for 2021 and 2022, the IRS has waived the RMD excise tax for SECURE Act 'Designed Beneficiaries' who were required to take an RMD in 2021 and/or 2022 and who must deplete the inherited traditional IRA within 10 years. Coronavirus Related Distribution (CRD) Re-Contribution The CARES Act of 2020 created a "Coronavirus Related Distribution" that qualifying individuals could take in 2020. If the IRA Owner took this distribution in 2020, the distribution can be repaid to the IRA per the guidelines provided in the CARES Act over a three-year period. If the IRA owner needs to repay this distribution, you can submit an investor signed Additional Investment Form indicating the receipt coding.

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