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#1871596 - 11/15/13 04:21 PM IRA Application
Auditor412 Offline
Member
Joined: Jun 2011
Posts: 51
Midwest, United States
I'm in need of assistance. I've recently discovered our new accounts department is not completing an IRA application each time a customer comes in to open an IRA. The application documents the type of IRA, tax year, contribution type and beneficiaries, etc. If the customer already has a retirement account with the bank, they simply complete the CD certificate or savings signature card depending on the type of account they open. Beneficiaries are not documented aside from on the system.

Does other banks complete the application for each IRA account? It seems to me that you would have to otherwise you may have a legal issue on your hands when the owner passes away.

Any help is appreciated - I'm anticipating an arguement from our new accounts department.

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#1871616 - 11/15/13 04:47 PM Re: IRA Application Auditor412
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,923
Galveston, TX
I thought you only had one IRS account. You might have a dozen or more CD's or other investments within an IRA account.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1871706 - 11/15/13 06:27 PM Re: IRA Application Auditor412
Auditor412 Offline
Member
Joined: Jun 2011
Posts: 51
Midwest, United States
rlcarey - In that case, each certificate would have its own account number but would reference only the one plan number correct? Such as...
Plan #001 could have CD#111, CD#112 & CD#113
And all certificates would list Plan #001 on the certificate itself.

Currently,each time we open a new IRA certificate - it is assigned new account number and new plan number, which are the same number. Applications are not always completed for each one so beneficiaries are not documented.
Plan #002 has CD#002
Plan #003 has CD#003
Plan #004 has CD#004
All for the same customer.

The bank I previously worked for followed the second example but completed an application for each certificate.

Which way is correct?

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#1871739 - 11/15/13 07:14 PM Re: IRA Application Auditor412
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,923
Galveston, TX
I have never seen an bank treat each individual CD as a separate plan. How in the world would you manage RMDs??? You have one overriding custodial agreement signed for each customer no matter how many individual CDs that they have at the bank. What you are proposing would be like Charles Schwab making me open a new plan for every different stock I bought in the my IRA. You need to be involving qualified legal counsel to sort out whatever mess you might have.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1871811 - 11/15/13 08:44 PM Re: IRA Application Auditor412
Auditor412 Offline
Member
Joined: Jun 2011
Posts: 51
Midwest, United States
RMDs are being calculated correctly because the report groups them all together - it is the documentation that I am concerned about.

Here's another question...if you have two certificates within a plan - can each certificate have different beneficiaries?

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#1871823 - 11/15/13 09:02 PM Re: IRA Application Auditor412
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,923
Galveston, TX
No - You have one plan document that designates the beneficiaries of the IRA. Each CD does not stand on its own.


RMDs are being calculated correctly because the report groups them all together - Well ding, ding, ding, I think you have a winner. If that doesn't tell you how the system works, nothing will. You should have one custodial document that governs all the CDs the customer holds under the one plan.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1871879 - 11/15/13 10:02 PM Re: IRA Application Auditor412
Auditor412 Offline
Member
Joined: Jun 2011
Posts: 51
Midwest, United States
Thank you for your assistance!

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