Pershing is updating the IRA Distribution Form and changing the name to Individual Retirement Account/Education Savings Account Distribution Form. This is due to changing regulatory and business practices affecting IRA distributions, along with feedback from clients.
Form Improvements: The IRA/ESA Distribution form, which is currently available via Resources in Marketing Center of NetX360® , has been updated as follows:
- Added clarity of instructions, most notably the Tax Withholding Election step
- Improved explanations of functions within the form
- Updated acknowledgement language highlighting the one-rollover-per-year limitation
NOTE: Pershing will accept the existing version of the IRA Distribution form until December 31, 2015.
Updates Due to Policy Change: The Substantially Equal Series (SES) and Permanent Disability request reasons have been removed from the revised form. You can continue to select both SES and permanent disability request reasons by using the existing distribution form until December 31. As of January 1, 2016, we will no longer report asset movement requests with these codes for tax purposes.
Additionally, the ability to select these request reasons via the Asset Movement feature in NetX360 will be disabled at a future date. This policy change will impact accounts that Pershing serves as a custodian/non-bank trustee and accounts where Pershing acts as servicing agent. The removal of these options does not prevent investors from requesting an exception to the early withdrawal penalty via IRS Form 5329.
Please look for a future communication with more details regarding this policy change.