First-quarter account summaries and OnTarget statements are scheduled to be delivered in the coming weeks. For those clients who have elected to receive our correspondence electronically, be sure to go to ontargetinvesting.com to verify that we have your current email address in our system. If you haven’t already done so, you can contact Client Services at 800-347-3539, ext. 1, to set up e-delivery.
Fusion Prime Longevity Fee Credit Program
Clients who maintained the minimum balance requirements and are invested in Fusion Prime will receive a 5% fee credit based on the quarterly gross fee of the Fusion Prime account. This fee credit will be paid in the form of a Visa gift card. Clients eligible for the Fusion Prime Longevity Fee Credit Program received a letter earlier this year advising them of their eligibility. Eligible clients must register at www.flexibleplan.com/fusionprime. The deadline to register for the first-quarter 2019 credit is April 12, 2019. The fee credit will be issued after the registration deadline.
Deadline for contribution to an IRA is approaching
Tax day is right around the corner! Don’t wait until the last minute to establish your new IRA or rollover accounts.
Don’t file too early—Reallocated dividend payments
If your clients hold a mutual fund, exchange-traded fund (ETF), or real estate investment trust (REIT) in their portfolio, there is a high probability a portion of the dividend payments made throughout the year will be reallocated for tax reporting purposes. Due to late reallocation notices, some account owners will receive a corrected tax form.
Transaction data for taxable accounts
Each year we get questions from reps and tax preparers about how to handle transaction data for taxable accounts. While Flexible Plan does not provide tax advice, the following procedural information may be useful.
To avoid having to enter each buy/sell transaction, you can use one of the following methods:
- E*Trade Advisor Services integrates with Turbo Tax and H&R Block’s tax software, allowing you to download the data directly into the software program. E*Trade Advisor Services also provides the 1099-B tax data in CSV/spreadsheet format, which can be used with other software programs.
- Totals can be entered on Schedule D, and a hard copy of the 1099-B data can be submitted separately from the electronically filed return. Totals entered using this method could be labeled “Per schedule submitted with Form 8453.” You would then submit an IRS Form 8453 with the 1099-B tax data to the following address:
Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
Wash sales: Interest in the subject of wash sales and active management always spikes during tax season. Information about wash sales, their effects, and how to avoid them at Flexible Plan can be found here.
2018 tax forms
All account tax forms have been mailed and are available online through the E*Trade Advisor Service Liberty website.
Tax data for Turbo Tax and H&R Block
Tax data will be available for import into both Turbo Tax and H&R Block tax programs. Clients will need to establish a Liberty login and password before using the import process. Select “TCA by E*Trade” from the list of financial institutions and then authenticate your identity using your Liberty login and password. Online assistance is available through the Help Center services of both Turbo Tax and H&R Block. Note: This import process is not available on the free version of Turbo Tax.
TCA by E*Trade announces new name: E*Trade Advisor Services
TCA by E*Trade is now E*Trade Advisor Services. The company’s rebranded website, marketing materials, forms, and applications are now available to customers.
E*Trade Advisor Services will honor TCA by E*Trade paperwork “in flight” for the next 12 months. To ensure timely processing on E*Trade accounts, please use the most current forms. You can find the most current TCA by E*Trade forms by logging on to flexibleplan.com and selecting the Product Provider Forms option under the New Accounts menu.
The Liberty experience will remain the same for advisers and clients. For more details about the transition, please read the announcement letter here.