AAL EQUITY DISTRIBUTION TO AN IRA ROLLOVER
Can American Financial Advisors provide guidance with the AAL Equity Distribution to an IRA Rollover?
Yes. As of 5/15/16 American Financial Advisors has assisted more than 200 AFA Pilot-Clients with the Equity Distribution Rollover. To date, AFA Pilot-Clients have rolled-over more than $5 million in Equity Distribution assets, which potential tax refunds and/or credits of more than $1.4 million.
At this time, we are only able to assist AFA Pilot-Clients with the Rollover of Equity Distribution assets. We are able to assist new Pilot-Clients who become AFA Pilot-Clients through the Equity Distribution Rollover process. Generally, the minimum account balance for becoming an AFA Pilot-Client is $100,000. Assets rolled-over from the Equity Distribution can be applied to this account minimum. We will work with new AFA Pilot-Clients on an individual basis to determine if it is possible to become a client through the Equity Distribution Rollover process.
AFA starts the Equity Distribution Rollover by requesting Equity Distribution information. This information is available on the Computershare website and the AA Notice Letters. Once we have received this information we analyze the Rollover options through AFA’s Equity Distribution to IRA proprietary worksheet (ED-IRA analysis).
The ED-IRA analysis will indicate the maximum number of AAL shares and/or cash which could be rolled-over to an IRA. We will also provide you with an estimate of the tax refund/credit by rolling-over Equity Distribution assets.
AFA will set up the required accounts and will provide you with the forms to facilitate a Rollover of Equity Distribution assets. We will monitor the entire Rollover process to ensure it is completed prior to the Rollover deadlines.
Once the Equity Distribution Rollover has been completed, we will send several documents which can be provided to your Tax Professional/CPA. If your Tax Professional/CPA has additional questions, we will be able to contact your Tax Professional/CPA directly.
Equity Distribution to IRA Rollover Important Deadlines
By Markus Bras, CFP®, MBA; Director of Pilot Services, American Financial Advisors, Inc.
If you are considering an IRA Rollover of the 2013, 2014 and/or 2016 Equity Distribution awards, keep the following AFA and IRS deadlines in mind.
Rollover of 2013 and/or 2014 Equity Distribution Awards
IRS deadline for Rollover of 2013/2014 Equity Distribution Award: 6/15/16.
AFA deadline for set up of individual and/or Contributory IRA accounts: 5/31/16.
AFA deadline for Computershare transfer request: 5/31/16.
AFA deadline for submitting Rollover forms with Schwab: 6/5/16.
Rollover of 2013 and/or 2014 Equity Distribution Awards
IRS deadline for Rollover of 2016 Equity Distribution Award: 9/17/16.
AFA deadline for set up of individual and/or Contributory IRA accounts: 9/1/16.
AFA deadline for Computershare transfer request: 9/1/16.
AFA deadline for submitting Rollover forms with Schwab: 9/5/16.
AFA Pilot-Clients with last names A-L should contact mbras@AFAdvisors.com for additional Equity Distribution-IRA Rollover information.
AFA Pilot-Clients with last names M-Z should contact jmorales@AFAdvisors.com for additional Equity Distribution-IRA Rollover information.
What information does AFA need to start the Equity Distribution Rollover process?
In order to provide you with American Financial Advisors’ guidance in regard to the Equity Distribution to IRA rollover options, would you be able to send us the following information:
-AA Notice Letter. To be received from AA by mail. This letter states the annual Gross Equity Distribution Awards (call 888-285-9438 or email firstname.lastname@example.org if you have not received the 2013/2014 and/or 2016 AA Notice Letter). The AA Notice Letter for the 2013/2014 Equity Distribution was mailed in Feb. 2016. The 2016 Equity Distribution Notice Letter should be received by mail by 5/1/16.
-Summary of Computershare transactions (Net awards/Sales/Transfers):
Select “Employee Plan Stock” - “View Account”
From top bar select “History” followed by selecting “Transaction History”.
Make sure that “For the Year” has been selected with “All” and “All” selected.
Copy and Paste all transactions under “Historical Transactions”.
-For 2016 Equity Distribution Award we need the following information (Summary of Gross and Net Awards):
Select “View Account” on line next to “Employee Grants and Awards” (top line)
Select “View” on line next to “Restricted Awards/Units”
From top bar select “Orders & Transactions”.
Make sure that “View complete history” has been selected.
Copy and Paste all transactions under “Finalized Transaction History”.
-Transaction History of AAL shares transferred to a taxable brokerage account (other than your Schwab taxable brokerage account).
-Email this information to mbras@AFAdvisors.com
Computershare contact information: For online information, access your Computershare account through www.computershare.com/aal (don’t forget to add the www or you will not reach the appropriate website). If you have issues with online access to your Computershare account or would like to discuss your Computershare account by phone, contact Computershare at 888-608-2597 or 888-608-2588; In order to avoid getting stuck in a phone tree quagmire, only enter -0- or no prompts at all. Note: Your Global ID is your Social Security number.
Disclosure: AFA is not able to provide specific tax advice. All Equity Distribution to IRA guidance is based on information from Computershare, JetNet, APA and IRS websites. This information is subject to change without notice. Prior to commencing the Equity Distribution to IRA rollover we highly recommend contacting your tax professional to discuss the benefits and costs of rolling-over Equity Distribution assets. Once Equity Distribution assets are rolled-over to an IRA, IRA rules govern. We do not recommend rolling-over Equity Distribution assets, if these assets are needed prior to retirement. Only the effect of Federal Income Taxes is taken into consideration in AFA’s guidance. The Equity Distribution to IRA rollover of 2013 and/or 2014 Equity Distribution awards generally requires filing amended tax returns. AFA is not able to provide guidance on filing amended tax returns. Documents related to the Equity Distribution to IRA rollover of the 2016 Equity Distribution award should be included when filing 2016 tax forms. The information provided by AFA is not audited and not considered tax advice. APA’s statement regarding the Equity Distribution Rollover should be taken into consideration (“there is no guarantee of the position that the IRS might ultimately take regarding an equity transfer”). Your tax professional ultimately determines the applicable income reduction resulting from rolling-over Equity Distribution assets to a traditional IRA.
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